New Post Advanced Search

moving Stakehold pension to SIPP

7 replies 637 views
123mat123123mat123 Forumite
187 posts
Ninth Anniversary 100 Posts
I have an L&G stakeholder pension of about £155k

It is pretty static in that I no longer contribute to it

I plan to retire in maybe 3 years at age 60

I was happy to just let it trundle along.

L&G are now transfering all their Stakeholder pensions to another company (ReAssure) so wanted to know what people's opinions are
on transferring pensions to a SIPP.

I currently have HL SIPP, and would be comfortable with investing in Vanguard's mixed equity/bond products.

I appreciate HL are not the cheapest.

It is not clear the costs of using L&G as a platform, I think 1%

Are there any less obvious considerations I should take into account. I've had no problems with L&G, and Reassure will apparently provide same service/charges.

I can't explain my motivation to want to move to a SIPP (transparency ?, half hosting cost ?), so I would welcome any comments....

Replies

  • AlbermarleAlbermarle Forumite
    3.9K posts
    1,000 Posts Second Anniversary Name Dropper
    ✭✭✭✭
    Firstly the change from L&G to Reassure should not be a reason to move the stakeholder as it should bring no disadvantage for you .
    So a reason to move could be for lower charges, so you need to get clarity on L&G charges so you can compare properly. ( you might also at the same time look at cheaper SIPP provider than HL)
    Another reason could be a wider range of investments ( but it seems you have a SIPP and only use one or two Vanguard funds)
    With some pensions a larger combined fund can get you a bigger discount
    Probably the biggest reason to move a pension is so when you retire and start taking funds from it , that it has all the facilities for drawdown etc as some older pensions do not .
  • SonOfSonOf Forumite
    2.6K posts
    1,000 Posts Second Anniversary
    ✭✭✭✭
    I currently have HL SIPP, and would be comfortable with investing in Vanguard's mixed equity/bond products.

    That puts you at the more expensive end of things. Some may consider it a big difference. Others less so.
    Modern SHP around 0.5%
    Modern PPP around 0.3%
    HL plus VLS is 0.67%
    It is not clear the costs of using L&G as a platform, I think 1%

    L&G do not operate a platform. They did have a share in a platform but sold that some years back to Aegon.
    I've had no problems with L&G, and Reassure will apparently provide same service/charges.

    You wont notice any difference. This should not be a driver on your decision to move.
  • 123mat123123mat123 Forumite
    187 posts
    Ninth Anniversary 100 Posts
    SonOf wrote: »
    That puts you at the more expensive end of things. Some may consider it a big difference. Others less so.
    Modern SHP around 0.5%
    Modern PPP around 0.3%
    HL plus VLS is 0.67%



    L&G do not operate a platform. They did have a share in a platform but sold that some years back to Aegon.



    You wont notice any difference. This should not be a driver on your decision to move.

    Yes, maybe I should focus on cost - there would be a considerable saving in moving existing HL SIPP and the L&G Stakeholder to a new SIPP on Interactive Investor (capped at £120 / year)
  • AlbermarleAlbermarle Forumite
    3.9K posts
    1,000 Posts Second Anniversary Name Dropper
    ✭✭✭✭
    You might want to think about extra costs for a SIPP when you retire and start to take money from the pension .
    The SIPPs with the cheapest charges tend to charge extra for drawdown, withdrawals etc .
    https://monevator.com/compare-uk-cheapest-online-brokers/
    http://www.comparefundplatforms.com/
  • midlandsimonmidlandsimon Forumite
    44 posts
    10 Posts
    As mentioned above, all depends on the value of your plan. If a smaller pot, find a platform SIPP which has a % fee basis, anything larger then you should be shopping for a fixed fee provider. Plenty of good platforms out there which will give you far greater access and control than your current stakeholder arrangement.
  • AlbermarleAlbermarle Forumite
    3.9K posts
    1,000 Posts Second Anniversary Name Dropper
    ✭✭✭✭
    If a smaller pot, find a platform SIPP which has a % fee basis, anything larger then you should be shopping for a fixed fee provider.
    Generally this is true but can be exceptions .
    Some % fee SIPPS have a low cap on the maximum charge if you are invested in shares/Investment trusts/ETF's rather than the more usual funds. Even if you are 50% funds and 50% traded items then it can still change the fees calculation.
    Also in drawdown most charge extra, but two % fee ones do not ( HL & Fidelity) so again this can affect the fees calculation.
  • AlexlandAlexland Forumite
    6.7K posts
    1,000 Posts Second Anniversary Photogenic Name Dropper
    ✭✭✭✭
    123mat123 wrote: »
    there would be a considerable saving in moving existing HL SIPP and the L&G Stakeholder to a new SIPP on Interactive Investor (capped at £120 / year)

    Remember the II SIPP fee of £120 pa is in addition to the II account fee of at least £120 pa so a minimum of £240 pa and possibly more depending on your trade activity.

    I agree it's worth looking at capping you platform fee by holding ETFs with Fidelity at £45 pa plus £10 trade costs. You could get a very similar asset allocation to VLS by holding a 2 fund portfolio with a global equity ETF and a bond ETF. However it's worth remembering that ETFs have no FSCS protection and SIPPs only have £85k FSCS protection.

    Alex
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support