85k pension pot at 40..advice please

Richy1179

Hi All
Some advice please.
I have recently changed jobs and have an old pension fund (85k), saving 25% salary per month with sacrifice. I also have 8 years in the NHS, some decent savings in Hargreaves and a mortgage (20 years left), also the usual family comittments.

I am aware my new pension provider charges 0.06% in fees so not keen on moving 85k to new provider. Also that pensions are only protected up to 85k.

So do I move the 85k to a SIPP with lower fees and build it up, or look at multiple pension pots to spread the risk more.
Probably whilst over paying mortgages and building up stocks and shares ISA.

Many thanks 

Dazed_and_C0nfused

0.06% sounds low to me, who will do it for less?

Albermarle

So do I move the 85k to a SIPP with lower fees and build it up, or look at multiple pension pots to spread the risk more.

If you know a SIPP that charges less than 0.06% , please inform us and I will transfer to it this afternoon ! Do you mean 0.6% maybe ?

Pretty much everyday someone asks about the £85K issue with pension providers . The answer is always that the mainstream pension/investment platform  providers are very low risk. You can not compare them to a bank , that takes risks lending out money .

If you are that worried then move to a big insurer, like Aviva, Standard Life, Scottish widows etc where your money is protected 100%

Richy1179

Thanks for your responses.
Apologies I meant 0.6%!!!
I was looking at transferring to the ii SIPP as mentioned on this site ("better for pension pots over 50k")
But maybe reducing contributions a bit as I have 20 years to go before retirement.
Maybe focusing more on Mortgage repayments and ISA?
Or keep with large pension salary sacrifice for longer?
Cheers

Albermarle

If you look through the threads on this forum you will see the pensions vs mortgage debate is a common theme . Or you could try using the search function . 

kinger101

Salary sacrifice gives you an instant bonus of 25% if you're basic rate, and 46.6% if you're higher rate.  ISA gives you zilch.
Your mortgage interest rate is likely lower than inflation, whereas a globally diversified portfolio would hopefully on average beat inflation by somewhere between 2.5 and 6 % per annum over the long term.  Some advise overpaying mortgage for peace of mind, but for return on investment, it extremely unlikely that it would be better than ploughing more into a salary-sacrifice pension scheme.