Will I loose out in a transfer from an old company pension to the new one?

MiserlyMartin

My employer has changed pension firm to a new one. Old one is frozen in a fund with an AMC of 0.46% New Generation Group Personal Pension Plan. There is only about £1800 total as I haven't been there long.  New pension is on the default L&G target active managed retirement fund - has an AMC of 0.15%. I also have a vanguard SIPP invested in the lifestrategy funds (0.22%) so I could transfer to that also. The new company say "Consider the charges, funds and any safeguarded or valuable benefits that could be lost" on transferring... and say to consult my financial advisor. I don't have one at this company.

Is this just standard blurb about pension transfers or do I need to be careful? Grateful for any replies

dunstonh

Old one is frozen in a fund with an AMC of 0.46% New Generation Group Personal Pension Plan.

That will not be frozen.  The NGP plans was a defined contribution range offered by Friends provident.  It was available as a group PPP or group SHP.

Is this just standard blurb about pension transfers or do I need to be careful? Grateful for any replies

it is not standard blurb because many people don't understand the positives that may exist on the pension they have.  It is a warning to make sure you do understand.

xylophone

There is only about £1800 total as I haven't been there long.  

This is a very modest sum - would a transfer in to the new scheme be accepted?

Notepad_Phil

There will also be a platform charge that you'll be paying, so if you do decide to transfer out be sure that you know the total charges that you'll pay - e.g. the vanguard sipp has a platform charge of 0.15% (capped at £375 per year) as well as the 0.22% charge of the fund, the L&G platform cost will depend on how good a deal your company got.

MiserlyMartin

Thanks for the replies. Good point - I'd forgotten to consider the platform charge. The workplace scheme is 0.13% but not capped so far as I was told.

MX5huggy

£1800, just move it to either scheme, to tidy up your pension. Theoretically it might have some features worth considering but at such low value not worth worrying about.