Is it feasible to transfer A Peoples Pension every month to somewhere else?

unicornsNrainbows

Hello all,

I have a strange pension question, and wondered if anyone else was doing something similar?

My main pension pot has a reasonably ok management fee at 0.34%.  My new employer uses Peoples Pension, which has a complex charges / rebate structure going on...

• £2.50 annual charge
• 0.5% management fee
• Rebate bands depending on the size of the pot

I am thinking to avoid this annoying complexity, and want to just transfer every payment over to the main pot every month. I suppose some might say that moving everything to Peoples Pension is likely to save more in management fees in the long run...

Anyone else doing something like this?

Thanks for your thoughts!

  

Here is a table illustrates how the rebate works when the pot is £100k.

Prism

You will need to find out if Peoples Pension supports partial transfers. If not then you can't do this. If they do then you could transfer from time to time but I think every month might be too often - it can take many weeks to transfer and I doubt you would want to start a new monthly one when the last one wasn't complete. We use a similar strategy with a different platform, but every couple of years not every month.

Marcon

Prism said:

You will need to find out if Peoples Pension supports partial transfers. If not then you can't do this. If they do then you could transfer from time to time but I think every month might be too often - it can take many weeks to transfer and I doubt you would want to start a new monthly one when the last one wasn't complete. We use a similar strategy with a different platform, but every couple of years not every month.

They don't. 

OP - if you do transfer, then you could find yourself effectively opting out of your employer's scheme (and missing out on the employer contribution) and it could be many months before you are able to rejoin.

unicornsNrainbows

Thank you both for the information!

Possibly worth then considering moving a good amount of my main pension over to Peoples Pension to get the rebates.  I feel a spreadsheet coming on 

Pablo7474

Also consider the time taken to do this every month, is it really worth the small potential saving? Also factor in out of market time etc, you could end up worse off anyway. I do what you are doing about once every two years. 

af1963

If you put in £1000 per month, you'd pay £5 (or less) with peoples pension, against £3.40 with your other provider.  Is the £1.60 per thousand pounds worth the hassle ?

If you move other funds over to PP, your overall charges would be less once the total amount was more than about £30K. 

You also might want to consider what investments are available to you with each provider.  If they both offer broadly similar ways to invest in the way you want, pick either one. But one might offer options that the other doesn't.