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Pension switching incentives

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  • granta
    granta Posts: 503 Forumite
    Tenth Anniversary 100 Posts Photogenic Name Dropper
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
  • artyboy
    artyboy Posts: 1,593 Forumite
    1,000 Posts Second Anniversary Name Dropper
    granta said:
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
    Ordinarily I'd agree, but for my most recent Moneyfarm one, a 2.5% effective cashback on a small transfer, I decided it was worth a punt. Perhaps I need more excitement in my life  :D
  • michaels
    michaels Posts: 29,092 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    artyboy said:
    granta said:
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
    Ordinarily I'd agree, but for my most recent Moneyfarm one, a 2.5% effective cashback on a small transfer, I decided it was worth a punt. Perhaps I need more excitement in my life  :D
    Aren't you locked into moneyfarms 'dodgy' choice of 'funds' though?
    I think....
  • artyboy
    artyboy Posts: 1,593 Forumite
    1,000 Posts Second Anniversary Name Dropper
    michaels said:
    artyboy said:
    granta said:
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
    Ordinarily I'd agree, but for my most recent Moneyfarm one, a 2.5% effective cashback on a small transfer, I decided it was worth a punt. Perhaps I need more excitement in my life  :D
    Aren't you locked into moneyfarms 'dodgy' choice of 'funds' though?
    There are some pretty simple fixed allocation ones that I can live with. In fact they have a money market focused one for liquidity if I wanted to use it as a risk hedge. But I doubt I'll be there for that long anyway...
  • granta
    granta Posts: 503 Forumite
    Tenth Anniversary 100 Posts Photogenic Name Dropper
    artyboy said:
    michaels said:
    artyboy said:
    granta said:
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
    Ordinarily I'd agree, but for my most recent Moneyfarm one, a 2.5% effective cashback on a small transfer, I decided it was worth a punt. Perhaps I need more excitement in my life  :D
    Aren't you locked into moneyfarms 'dodgy' choice of 'funds' though?
    There are some pretty simple fixed allocation ones that I can live with. In fact they have a money market focused one for liquidity if I wanted to use it as a risk hedge. But I doubt I'll be there for that long anyway...
    Which Moneyfarm transfer value cashback band would you say is the optimal one taking into account the fees etc? Trying to work out the maths!
  • artyboy
    artyboy Posts: 1,593 Forumite
    1,000 Posts Second Anniversary Name Dropper
    granta said:
    artyboy said:
    michaels said:
    artyboy said:
    granta said:
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
    Ordinarily I'd agree, but for my most recent Moneyfarm one, a 2.5% effective cashback on a small transfer, I decided it was worth a punt. Perhaps I need more excitement in my life  :D
    Aren't you locked into moneyfarms 'dodgy' choice of 'funds' though?
    There are some pretty simple fixed allocation ones that I can live with. In fact they have a money market focused one for liquidity if I wanted to use it as a risk hedge. But I doubt I'll be there for that long anyway...
    Which Moneyfarm transfer value cashback band would you say is the optimal one taking into account the fees etc? Trying to work out the maths!
    Well it will depend on your objectives, risk tolerance, amount transferred etc... but for me, the highest equity fixed allocation one looked ok...
  • granta
    granta Posts: 503 Forumite
    Tenth Anniversary 100 Posts Photogenic Name Dropper
    artyboy said:
    granta said:
    artyboy said:
    michaels said:
    artyboy said:
    granta said:
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
    Ordinarily I'd agree, but for my most recent Moneyfarm one, a 2.5% effective cashback on a small transfer, I decided it was worth a punt. Perhaps I need more excitement in my life  :D
    Aren't you locked into moneyfarms 'dodgy' choice of 'funds' though?
    There are some pretty simple fixed allocation ones that I can live with. In fact they have a money market focused one for liquidity if I wanted to use it as a risk hedge. But I doubt I'll be there for that long anyway...
    Which Moneyfarm transfer value cashback band would you say is the optimal one taking into account the fees etc? Trying to work out the maths!
    Well it will depend on your objectives, risk tolerance, amount transferred etc... but for me, the highest equity fixed allocation one looked ok...
    I was meaning the relative cost:benefit ratio of the actual cashback bands, e.g. 100-200k gets you £XX etc. Sometime some bands are disproportionately more generous in Fidelity/HL promotions and I tend to transfer at the lower end of the more generous bands.

    So was wondering if you'd calculated which bands were more worth it for MoneyFarm given their relatively higher fees?
    Now that I have most of my holdings in ETFs, it's less attractive to transfer to them and be out of the market
  • artyboy
    artyboy Posts: 1,593 Forumite
    1,000 Posts Second Anniversary Name Dropper
    granta said:
    artyboy said:
    granta said:
    artyboy said:
    michaels said:
    artyboy said:
    granta said:
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
    Ordinarily I'd agree, but for my most recent Moneyfarm one, a 2.5% effective cashback on a small transfer, I decided it was worth a punt. Perhaps I need more excitement in my life  :D
    Aren't you locked into moneyfarms 'dodgy' choice of 'funds' though?
    There are some pretty simple fixed allocation ones that I can live with. In fact they have a money market focused one for liquidity if I wanted to use it as a risk hedge. But I doubt I'll be there for that long anyway...
    Which Moneyfarm transfer value cashback band would you say is the optimal one taking into account the fees etc? Trying to work out the maths!
    Well it will depend on your objectives, risk tolerance, amount transferred etc... but for me, the highest equity fixed allocation one looked ok...
    I was meaning the relative cost:benefit ratio of the actual cashback bands, e.g. 100-200k gets you £XX etc. Sometime some bands are disproportionately more generous in Fidelity/HL promotions and I tend to transfer at the lower end of the more generous bands.

    So was wondering if you'd calculated which bands were more worth it for MoneyFarm given their relatively higher fees?
    Now that I have most of my holdings in ETFs, it's less attractive to transfer to them and be out of the market
    There are limits to the attraction of finding the 'sweet spot' you're talking about. In Moneyfarm's case it would be the Quidco offer of £250 for a £5000 contribution, so 5% or almost 6% if you timed it with the extra £40 bonus that Quidco had listed.

    But I'm way past the point where I can be bothered with setting up anything that small. Obviously may appeal to others though...
  • granta
    granta Posts: 503 Forumite
    Tenth Anniversary 100 Posts Photogenic Name Dropper
    artyboy said:
    granta said:
    artyboy said:
    granta said:
    artyboy said:
    michaels said:
    artyboy said:
    granta said:
    Are these incentives only worthwhile if doing an in specie transfer?
    I have received a couple of incentives over the last few years, with in specie transfers. My pension is now at a level where the amount it can go up, or down, in a single day, exceeds any transfer incentive. So if it had to be moved to cash I could very easily lose out.
    I only ever do in specie transfers otherwise the potential for market loss would not be outweighed by the incentive as you say
    Ordinarily I'd agree, but for my most recent Moneyfarm one, a 2.5% effective cashback on a small transfer, I decided it was worth a punt. Perhaps I need more excitement in my life  :D
    Aren't you locked into moneyfarms 'dodgy' choice of 'funds' though?
    There are some pretty simple fixed allocation ones that I can live with. In fact they have a money market focused one for liquidity if I wanted to use it as a risk hedge. But I doubt I'll be there for that long anyway...
    Which Moneyfarm transfer value cashback band would you say is the optimal one taking into account the fees etc? Trying to work out the maths!
    Well it will depend on your objectives, risk tolerance, amount transferred etc... but for me, the highest equity fixed allocation one looked ok...
    I was meaning the relative cost:benefit ratio of the actual cashback bands, e.g. 100-200k gets you £XX etc. Sometime some bands are disproportionately more generous in Fidelity/HL promotions and I tend to transfer at the lower end of the more generous bands.

    So was wondering if you'd calculated which bands were more worth it for MoneyFarm given their relatively higher fees?
    Now that I have most of my holdings in ETFs, it's less attractive to transfer to them and be out of the market
    There are limits to the attraction of finding the 'sweet spot' you're talking about. In Moneyfarm's case it would be the Quidco offer of £250 for a £5000 contribution, so 5% or almost 6% if you timed it with the extra £40 bonus that Quidco had listed.

    But I'm way past the point where I can be bothered with setting up anything that small. Obviously may appeal to others though...
    Yeah I agree. I'm sticking with the main platforms that offer a a capped charge for etf holdings to maximise cashback whilst it lasts.
    Moneyfarm was great in the first year when they offered a fee free deal up to £10k but not so cost-effective now
  • I have c£57k to transfer, how does an in specie transfer work? Is that where it stays invested in the funds you are in and moves? I'd ruled out doing any incentives due to to the potential loss of money over the transfer duration. However I may have completely misinterpreted what the in specie transfer is!
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