HL to Vanguard SIPP transfer 2 November 2022 at 10:19AM in Savings & investments 7 replies 216 views

lightbox62

Hi

My workplace pension is paid into a HL SIPP and (I'm ashamed to say) I've built up a significant amount of cash there which I would like to invest soon.  I'm considering the Vanguard lifestrategy range (as already have an ISA with Vanguard) and, if so, considering transferring the Vanguard portion of my SIPP over to the Vanguard platform to take advantage of its lower platform fees.  Can anyone provide any guidance on:

a) how long HL take to transfer cash to another provider's SIPP;
b) whether HL would be able to perform an in specie transfer if I purchase the Vanguard units within the HL SIPP and then request the transfer? And, if so, any idea of timing of the in specie transfer?

Many thanks

Albermarle

lightbox62 said:

Hi

My workplace pension is paid into a HL SIPP and (I'm ashamed to say) I've built up a significant amount of cash there which I would like to invest soon.  I'm considering the Vanguard lifestrategy range (as already have an ISA with Vanguard) and, if so, considering transferring the Vanguard portion of my SIPP over to the Vanguard platform to take advantage of its lower platform fees.  Can anyone provide any guidance on:

a) how long HL take to transfer cash to another provider's SIPP; A year? ago there were a lot of posts complaining about how slow HL were to transfer SIPPs out ( months ) but nothing heard recently.
b) whether HL would be able to perform an in specie transfer if I purchase the Vanguard units within the HL SIPP and then request the transfer? And, if so, any idea of timing of the in specie transfer? Yes they would, but in specie transfers always take longer than cash, Typically months rather than weeks. Between some providers a cash transfer might happen in just a week.

Many thanks

See Above

dunstonh

a) how long HL take to transfer cash to another provider's SIPP;

Most providers using Origo would be around 2-3 days. HL have had problems in the recent past where it was taking months but we haven't seen any negative posts recently.

b) whether HL would be able to perform an in specie transfer if I purchase the Vanguard units within the HL SIPP and then request the transfer? And, if so, any idea of timing of the in specie transfer?

HL can do in-specie transfers but I don't know about Vanguard.  in-specie transfers can take upto a year to complete.  Although 3-6 months is more typical.

Swipe

I'd get the cash transferred to your Vanguard SIPP then invest afresh from there. Will be way faster than an in specie transfer. I transferred a pension from Nest to Vanguard a couple of years ago and I think it took a couple of weeks.

Exodi

Contrary to the above, I've always found when transferring pensions that the in-specie investments were transferred first, with cash transferred after.

Rich1976

some providers do not accept partial transfers.

My other half transferred their full pension from HL to Vanguard end of last year and that process took about 4 months. HL blamed the delay on waiting to receive the tax relief before they could transfer it but then apparently Vanguard only requested a partial transfer instead of a full transfer ( which they of course denied ).     

dunstonh

Contrary to the above, I've always found when transferring pensions that the in-specie investments were transferred first, with cash transferred after.

I think this is a play on words, and it is not comparing like for like.

If you do an in specie transfer and the platform holds cash, then it is normal for the cash float to come over pretty late on in case dividends are received.   Often it is the last part sent.
However, cash transfers are where there is in-specie transfer taking place and would not have that issue and can arrive in days.

Cash transfers are nearly always quicker than in-specie transfers.  Indeed, I have done thousands of pension transfers over the years and not once has an in specie transfer completed quicker than a cash transfer.

Exodi

dunstonh said:

Contrary to the above, I've always found when transferring pensions that the in-specie investments were transferred first, with cash transferred after.

I think this is a play on words, and it is not comparing like for like.

If you do an in specie transfer and the platform holds cash, then it is normal for the cash float to come over pretty late on in case dividends are received.   Often it is the last part sent.
However, cash transfers are where there is in-specie transfer taking place and would not have that issue and can arrive in days.

Cash transfers are nearly always quicker than in-specie transfers.  Indeed, I have done thousands of pension transfers over the years and not once has an in specie transfer completed quicker than a cash transfer.

Sorry it wasn't my intention to mislead but I can see now how it reads.

Yes I believe if you transfer in-specie investments with cash at the same time, cash arrives last.

Otherwise, as you say, cash on it's own would arrive much quicker (as it should!).

I think this really boils down to whether the OP does a part or full transfer. It would probably be unlikely to do a full transfer with investments without cash (to cover ongoing fees while you remain on the platform), especially as the transfer takes so long.