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SIPP transfer to personal pension?

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C_MababejiveC_Mababejive Forumite
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Part of the Furniture 10,000 Posts Combo Breaker
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I started a SIPP a few years ago. It was a way of moderating taxation and also of course an investment vehicle. I also have a separate DB pension and im still working so not drawing on anything. Just thinking about it part of me thinks,why am i holding a SIPP when i could just put it in a personal pension product and let someone else with greater skill and experience grow it for me?My initial thoughts are one of the Royal London portfolios..

My logic is that it may fair better in their hands than with my investment decisions?
Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..

Replies

  • gm0gm0 Forumite
    179 posts
    100 Posts Second Anniversary Name Dropper
    Have had the same dilemma SIPP or PP moving from employer.

    Sceptical that your interests - better results through active management of your asset mix of equities and bonds will be top of mind for life company personal pension managers. Or that they will be the elite of the investment management profession if such a thing exists.

    Life company loses reputation and your business if they fall away too far from market return net fees. Need to be "in the ballpark". Around the line or a little below. Safe. Consistent. Only mildly disappointing. Maximum milk minimum moo. There are no prizes for taking a ton of additional risk and screwing up big time.
    Lost annual rake from customer base is very bad for earnings. Incentives suggest sleepy hollow is as sleepy hollow does. Closet trackers with fancy marketing and a bit of sauce around the edges seems likely.

    The cost (low) and counterparty risk (reputable) of the "wrapper" matters a little. What you put in the bag and why (goals, age, risk appetite for this part of your assets) matters a lot more. For many of us a SIPP is overkill but it may still be a cost effective way to do the simple things we want. In accumulation I am not sure it matters much whether occupational/personal/SIPP if the fund and other product/platform costs are comparable for the desired assets. Near retirement with a better handle on how it is to be consumed or passed on the "product" features can matter more once you know what you need.

    If you are past the whole goals, risk appetite part and are taken with a particular investment philosophy and want to hold a particular style of actively managed portfolio (RL as mentioned) then fair enough - work out the best way to hold that (costs, lock in etc.).

    Do maintain a healthy scepticism about goal alignment though. Retail FS is built on the principle that everyone gets paid first and you get sufficiently close to published market returns that you don't quit in disgust.

    If you have been an active fund picker but disappointed by results then you may wish to look at Krojier "whole of market cheaply" for a while and try and pick up nearly all the beta. My own 5 year experiments seemed to show that for a particular example - after fees - I got about the same active v passive but I was taking more significantly more market investment risk (Emerging) but any alpha had disappeared to pay the middlemen. Trebles all round !
  • PrismPrism Forumite
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    You would prefer to use an IFA then (to access Royal London)? You may be better off if you feel you have been making poor decisions but another option is to stop making decisions yourself and pick a simple multi asset.
  • C_MababejiveC_Mababejive Forumite
    11.4K posts
    Part of the Furniture 10,000 Posts Combo Breaker
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    Prism wrote: »
    You would prefer to use an IFA then (to access Royal London)? You may be better off if you feel you have been making poor decisions but another option is to stop making decisions yourself and pick a simple multi asset.


    Well there have been one or two pants decisions but then one can never predict the future. For the past year i have been migrating to multiasset funds and am quite happy with returns so maybe im just looking around and i should stick with what ive got. I dont want to be at the high risk investment frontier and having to constantly monitor things to MA seems like a buy and almost forget solution with decent returns.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
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