Transfer to new pension provider/SIPP

rjmachin

Hi,

I currently have two work place DC pensions, one was an old pension prior to the auto enrolment changes years ago, and one is the new auto enrolment pension.

Old pension:
Aegon Stakeholder Pension Plan
Current Value £25k
February 2022 statement showed:
Value on 14/02/2022 = £24,312.59
Value on 14/02/2021 = £20,936.36 
Plan charges = £208.49
Payments during year = £2,610.00

This is invested in the Universal Balanced Collection, a Lifestyle plan where it reduces risk as you approach retirement.
https://www.trustnet.com/factsheets/p/az32/universal-balanced-collection-pn

I have continued to pay £187.50 gross per month into this pension via Direct Debit as well as contributions to the new pension.
My employer has continued to pay a fixed £30 per month as well as contributions to the new pension.

My employer contributions have covered the plan charges, so I have continued with it.

New pension:
Not important for the purpose of this thread, but it is with The Peoples Pension and is invested in this plan:
https://www.trustnet.com/factsheets/p/kovu/bce-the-peoples-pension-global-investments-up-to-85-shares-0.5-pn


Question / Purpose of thread:
So, the purpose of this thread, my employer has stopped payments in to the old pension with Aegon.  The last £30 by my employer was made on the 1st March.

I have around 17 years before I reach the minimum pension age for private pensions of 58 years old

I think the plan charges for the old pension are between 0.8% and 1%, depending on if using the value at the start or end of the year.

I would like to move it to a non-lifestyle pension.

I am not sure which platform would best suit me.

I currently have a S&S Lifetime ISA with AJ Bell, invested with VLS80
I also have a S&S ISA with Vanguard, invested with VLS80

I would be happy to go with VLS80/VLS100 or something like the FTSE All-World UCITS ETF if it works out cheaper.

I see that Vanguard now offer a personal pension, but is this a new product and are they recommended for pensions?

Marcon

rjmachin said:

Hi,

I currently have two work place DC pensions, one was an old pension prior to the auto enrolment changes years ago, and one is the new auto enrolment pension.

Old pension:
Aegon Stakeholder Pension Plan
Current Value £25k
February 2022 statement showed:
Value on 14/02/2022 = £24,312.59
Value on 14/02/2021 = £20,936.36 
Plan charges = £208.49
Payments during year = £2,610.00

This is invested in the Universal Balanced Collection, a Lifestyle plan where it reduces risk as you approach retirement.
https://www.trustnet.com/factsheets/p/az32/universal-balanced-collection-pn

I have continued to pay £187.50 gross per month into this pension via Direct Debit as well as contributions to the new pension.
My employer has continued to pay a fixed £30 per month as well as contributions to the new pension.

My employer contributions have covered the plan charges, so I have continued with it.

New pension:
Not important for the purpose of this thread, but it is with The Peoples Pension and is invested in this plan:
https://www.trustnet.com/factsheets/p/kovu/bce-the-peoples-pension-global-investments-up-to-85-shares-0.5-pn


Question / Purpose of thread:
So, the purpose of this thread, my employer has stopped payments in to the old pension with Aegon.  The last £30 by my employer was made on the 1st March.

I have around 17 years before I reach the minimum pension age for private pensions of 58 years old

I think the plan charges for the old pension are between 0.8% and 1%, depending on if using the value at the start or end of the year.

I would like to move it to a non-lifestyle pension.

I am not sure which platform would best suit me.

I currently have a S&S Lifetime ISA with AJ Bell, invested with VLS80
I also have a S&S ISA with Vanguard, invested with VLS80

I would be happy to go with VLS80/VLS100 or something like the FTSE All-World UCITS ETF if it works out cheaper.

I see that Vanguard now offer a personal pension, but is this a new product and are they recommended for pensions?

Check the charges - there should be fund factsheets available on the provider's website.

If you want to move to a non-lifestyle pension, have you checked to see what other options are offered within the stakeholder plan you are in at present, in case those turn out to be a good option?

rjmachin

The fastsheet shows a charge of 1.02%, but I know from other threads that this is not always the case.

It was a pension set up by a financial advisor for the company around 16 years ago so there may have been a discount (or not)

I will take a look at the other options

penners324

Or transfer the old 1 into the People s Pension..

Albermarle

penners324 said:

Or transfer the old 1 into the People s Pension..

This is a potential option, especially as the PP fund the OP is currently in looks rather similar to VLS 80 anyway .
Also the PP charges drop as the fund size gets bigger . Over £25K it drops to 0.25% all in , so will not be easy to find anything cheaper. 

rjmachin

Albermarle said:

penners324 said:

Or transfer the old 1 into the People s Pension..

This is a potential option, especially as the PP fund the OP is currently in looks rather similar to VLS 80 anyway .
Also the PP charges drop as the fund size gets bigger . Over £25K it drops to 0.25% all in , so will not be easy to find anything cheaper. 

Thanks, I did not know about the drop in fee.

Do you know where the drop to 0.25% is specified?  I had a quick look on my lunch break but could only find 0.5%.

xylophone

https://thepeoplespension.co.uk/jargonbuster/annual-management-charge-amc/

At the People’s Pension, we reduce the rate we charge you as your savings grow. We have an annual management charge made up of 3 elements:

• an annual charge of £2.50 deducted during the scheme year (which runs from 1 April to 31 March), if you have investments with us on 1 April
• a management charge of 0.5% of the value of your pension pot each year
• a rebate on the management charge of between 0.1% on savings over £3,000 and 0.3% on savings over £50,000

Albermarle

Looking at the detail of the funds , the PP 'Global investments up to 85% equity' actually has about 65% equity , so less than VLS 80 .
Unsurprisingly the PP fund  long term growth is lower but it has withstood the recent drops better 

THe PP fund 'global up to 100% equities '  has 82% equities so its long term performance is similar to VLS 80 .but has not dropped as much YTD.

The  PP funds non equities % are mainly not bonds, which is probably why they have been more resilient in recent market conditions .