StandardLife SIPP options

NYorks_

Hello,

Only my second post on this forum but I’ve been an eager reader of all posts and learnt a ton in return!

I have a question in regard to my own circumstances. I have a SIPP with StandardLife which is the converted pension scheme that was originally with my previous employer. The current value of this SIPP is approx. 200K. The money is currently invested 50% in the SL Managed Pension Fund (growth YTD 2.83, 1Y 12.09, 3Yrs 18.31, 5Yrs 35.32) and 50% in SL Multi Asset Managed fund (20-60% shares – growth YTD 2.11, 1Y 9.52, 3Yrs 14.06, 5Yrs 28.16). Currently charges of these funds are 0.726% and 0.723% respectively.

Because of the current value of this pot, SL offers a ‘Priority Support’ service, where SIPP options are reviewed (although of course it is not an advisory service). I had a call with their dedicated team today and I realized (which I did not before) that this SIPP is currently managed as a DIY option, meaning that at some point I must have chosen these funds myself. I’m pretty sure I did not change anything in the last 5 years since I left my previous employer, so that these choices must have been carried over when the workplace pension was converted into a SIPP. The Team indicated that I could change the DYI option to a ‘Ready Made’ option where a choice of funds will be chosen for me by a manager based on my attitude to risk. I was also told that there will be no charges to switch from current to the other option. A second options they offered is to switch to a LifeStyle Profile, which will de-risk funds as we approach my chosen retirement age. Again no cost for the switch but there will be a charge for the funds of course.

I do not have approached an IFA (yet), but will do in the near future. However, I’d like to gather people’s thoughts or experiences in having switched from the DYI option to either the ReadyMade or LifeStyle option. So far it looks to me (but of course I’m not expert!) as the DIY funds have performed reasonably well, although of course I know there is no guarantee of future performance. I guess my main concern for the DIY approach is to de-risk the investment by a given % every year as I approach retirement (I plan not to touch this pot until I’m 65 yo if I can). I have another pension I’m currently contributing with my current employer, and savings which I plan to use to brigde me to SP age from the age of 62-63yo when I will want to cut down my working commitment to perhaps a part-time role. Any advice is welcome, thanks.

AnotherJoe

Lifestyling is going out of fashion because unless you plan to buy an annuity (also out of fashion at age 65, though maybe later) you may be invested for many years and there's no sense getting out into cash or similar if you'll be invested for another 20 years say. 

As for IFA or DIY, hard to say. An IFA may well be able to help you with tax strategies for withdrawal but OTOH you've got years to work that out. 

Albermarle

The Team indicated that I could change the DYI option to a ‘Ready Made’ option where a choice of funds will be chosen for me by a manager based on my attitude to risk.

There may be no charge to change but was it made clear what the ongoing charges for the Ready Made option would be ?

Maybe be more than you are paying now ?