Partial transfer of workplace pension with Aviva to Vanguard SIPP

dsandoreo

bd10 said:

Many thanks Novice_Investor101, my overall plan is not to make transfers out on a regular basis at all. Been enrolled for quite a few years now and while the pot was small, I didn't mind too much the cost structure. It has grown a bit over time and this sideways market at the moment looks like a good opportunity to make a first transfer.

Realistically speaking, the next transfer would be maybe in 10 years or when I move on from my current employer, then a full transfer. More frequent transfers would also make little sense as I'd be out of the market for a few weeks and any potential postive returns would outweigh the fees saved.

@bd10

How did it all go?

I am considering doing the same (workplace Aviva to Vanguard SIPP), the segments thing totally threw me.

My initial plan was to transfer the bulk of it, then repeat every year or size months.

What did you end up doing in the end?

SaintInTheMaking

I'm also in the same boat. I have a MIPP (Workplace pension) with L&G and have setup a SIPP with Aviva. I did a full transfer out, which closed the pension and approached my company to pay into the Aviva pension. They refused. So, now my company is re-enrolling with L&G and I plan on doing multiple partial-transfers out in to the Aviva SIPP.

The reason I decided to move to Aviva, was that the L&G pension had actually lost money in the past 2 years and sadly, nobody at my company was keeping an eye on it and making sure it was making at least 4%. And my company and had not L&G had provided information to be on the pension performance. Most of my colleagues are in the dark and don't seem to care their pension is not working properly.

I'm now in my sixties, getting the state pension and I want to maximise my pot and create an money-elevator to build a decent sum up until I reach 70. What is the right way forward, given that companies don't seem to be properly managing employee pension pots and providing fiscal oversight. . I'd like a simple way to manage any funds I decide to invest in from one app. Is that possible, or do I have to spend valuable time searching for the right solution?

QrizB

SaintInTheMaking said:

The reason I decided to move to Aviva, was that the L&G pension had actually lost money in the past 2 years and sadly, nobody at my company was keeping an eye on it and making sure it was making at least 4%. 

...

given that companies don't seem to be properly managing employee pension pots and providing fiscal oversight.

Who specifically do you pay to manage your pension for you? Do you have an Independent Financial Advisor, a wealth manager or someone similar that you are expecting to be "making sure it was making at least 4%"?

Because neither your employer nor your employer's pension company have this responsibility. Unless you employ a professional to do it for you, you choose your investments and then the market does its thing.

dunstonh

The reason I decided to move to Aviva, was that the L&G pension had actually lost money in the past 2 years

The pension hasn't lost anything.  The funds within the pension did that and everyone lost money in 2022.   2023 was wavy line until December and that good month turned 2023 positive.

and sadly, nobody at my company was keeping an eye on it and making sure it was making at least 4%

That is because investments don't work that way.  Expecting them to do so is going to result in some poor outcomes in your expecation.

 What is the right way forward, given that companies don't seem to be properly managing employee pension pots and providing fiscal oversight.

Yes they are.  However, the failure appears to be in your understanding of what they do.
For example, when you pick the funds,  each will have a remit.  So, a UK equity fund will invest in UK equity.  Even if UK equity is the worst place to be that year because they cannot deviate from their remit.  Plus, you won't know in advance that an area is going to be the worst place.

 I'd like a simple way to manage any funds I decide to invest in from one app. Is that possible, or do I have to spend valuable time searching for the right solution?

Software can make it simple. That isn't the problem.    The weak link is your decision making if you don't know what you are doing.

Albermarle

The reason I decided to move to Aviva, was that the L&G pension had actually lost money in the past 2 years and sadly, nobody at my company was keeping an eye on it and making sure it was making at least 4%. And my company and had not L&G had provided information to be on the pension performance. Most of my colleagues are in the dark and don't seem to care their pension is not working properly.

To reinforce the previous comments. 

Your employer has no responsibility for managing the investments in your pension. All they do is set the pension up, and pay yours and theirs contributions into it.

The pension provider has a range of investments from which you can choose. They can not offer you any advice or manage your choice of investments. The exception is that if you do not choose any investments, they will divert your contributions into a default investment fund, which is a kind of middle risk fund.

I have 5 pensions and they all lost money during 2022 and most of 2023 , although they have improved in the last 3 months .

We all hope our investments will produce a steady positive return, but the reality is that some years are positive and some negative. The hope is that in the long term the result will be positive.