Have 5 pensions and considering transfer to a SIPP

Dziet_Sma

For the first time in 30 years I have reviewed my pension situation. I have 5 seperate pensions, 4 old pensions so not being contributed to currently and one current that is fairly generous, through my employment.

Four sit within the Pensions Trust and one with Aegon.  One is a Defined Benefit and is not currently being contributed to. The rest are defined contribuition.

Their 5 year growth has been between 20 and 34%. Is this good?

I am struggling getting independent financial advice as all I have spoken to have wartned against SIPPs and proposed their managed funds that cost 1-2% per annum. I am sceptical of this.

It's a new area so I am researching and want some general advice and guidance - I know its all a risk/gamble. I know performance can go up as well as down.

I have set up a H&L SIPP with a small monthly amount with a view to possibly transferring one or more of my pensions into it, and managing myself - need to get my head round this and how I do it and what funds I invest in.

I have 15 years left paying in probably and my aim is to maximise the fund and have a decent amount that I can live off the interest of and pass down to my kids when I have gone.

All advice welcome

Brie

Everyone will advise against you trying to move the DB pension - it's unlikely you can get it done and it will cost you a lot to be told that officially.  Besides it's nice to have something that is so secure and separate from the rest.

I would suggest you leave your current employers pension as is - keep an eye on it, make sure it's in the funds you like but stay put so as to get the max your employers is offering with it.  Can you put extra in it?  Very helpful if there's salary sacrifice available or as a way to stow bonuses and reduce your tax.

I would have a look at how much you are being charged for your DC pensions - any fees or restrictions that need to be considered.  After that, all being equal and since you say you're new to this, I would suggest moving one of the smaller DC funds into your SIPP to give you some time to get used to managing it.  If it doesn't work for you then not a lot is lost.

xylophone

The  deferred Defined  Benefit Pension (or any pension with safeguarded benefits) is probably best left alone, especially if  valued at over £30,000.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

The specialist advice required is expensive and without a positive recommendation to transfer, most providers (including HL) will not accept a transfer.

If the DC pensions have no safeguarded benefits, transfer to another scheme should not be a problem.

Had you considered a transfer to your current workplace scheme?

Otherwise HL guidance here

https://www.hl.co.uk/pensions/transfer-to-the-sipp

Up to you then to choose your investments.

Below might help.

https://monevator.com/low-cost-index-trackers/

https://monevator.com/best-global-tracker-funds/

Albermarle

Firstly the DB pension is best left alone. It is VERY difficult to transfer out of them anyway.
Secondly, you normally have to stick with your current employers pension, as usually they are very reluctant to contribute to any other pension. However you should be able to transfer other DC pensions into it, if that is what you wanted to do.
Four sit within the Pensions Trust
Can you expand on this statement ?

Their 5 year growth has been between 20 and 34%. Is this good?
It is not the pension itself that has grown as such. It is the investments held within the pensions. Some investments will have done better over the last 5 years than others. It is quite possible that the reverse could happen over the next 5 years.

I am struggling getting independent financial advice as all I have spoken to have wartned against SIPPs and proposed their managed funds that cost 1-2% per annum. I am sceptical of this
You can have managed funds in a SIPP. For example some of the own brand funds that HL promote could cost you 1.5% + platform fee of 0.45% ( highest there is ) They also have investments that cost only 0.1%.
A typical IFA cost would be 0.75% for them. 0.2% for the platform then 0.2% to 0.8% for the funds.

It's a new area so I am researching and want some general advice and guidance
Do not rush and read this forum regularly. This site is good Monevator - Make more money, invest profitably, retire early
These You tube videos are popular
PensionCraft - YouTube

dunstonh

I am struggling getting independent financial advice as all I have spoken to have wartned against SIPPs and proposed their managed funds that cost 1-2% per annum. I am sceptical of this.

That is strange as most pensions IFAs put in place nowadays are SIPPs.     Its the FAs that still tend to use old fashioned style personal pensions.  Are you sure you have been speaking with IFAs and not FAs?

Additionally, IFAs are whole of market and will follow any requirements you state.  So, if you say you want the IFA to use low cost index tracking funds then they have to do so.   Whereas FAs do not.   

squirrelpie

Whilst I agree with the general advice not to rush, it's worth noting that HL are presently offering cashback for pensions transferred to them, but only if you apply by 16 March, so it might be worth making some decisions promptly https://www.hl.co.uk/features/cashback
With regards to investments, it's also worth noting that HL limit the fees they charge on shares, including investment trusts, and on ETCs but not on funds, so it can be worthwhile to restrict your investments.

Albermarle

squirrelpie said:

Whilst I agree with the general advice not to rush, it's worth noting that HL are presently offering cashback for pensions transferred to them, but only if you apply by 16 March, so it might be worth making some decisions promptly https://www.hl.co.uk/features/cashback
With regards to investments, it's also worth noting that HL limit the fees they charge on shares, including investment trusts, and on ETCs but not on funds, so it can be worthwhile to restrict your investments.

From HL website

You will need to register for the cashback offer and apply to transfer by 16 March 2023 to qualify. If you’d like a three month extension let us know

You need to specifically register for the extension.

draiggoch

Can you log in to the Pensions trust website to view your pensions? I used to have a DB and DC with them, they were linked in that the DC pot could be used towards the tax free amount in relation to the DB scheme value.

Scot_39

squirrelpie said:

Whilst I agree with the general advice not to rush, it's worth noting that HL are presently offering cashback for pensions transferred to them, but only if you apply by 16 March, so it might be worth making some decisions promptly https://www.hl.co.uk/features/cashback
With regards to investments, it's also worth noting that HL limit the fees they charge on shares, including investment trusts, and on ETCs but not on funds, so it can be worthwhile to restrict your investments.

If he already has it open - he can probably ask them to extend the deadline on the offer - by six months - on current offer.

Think I had to call a few years back - to do the same.

And I don't think current £100-1500 depending on tranfer amount (0.33% to just over 1%) - should overly sway actions - one way or the other - on a long term investment.

But if going to do anyway - may as well take the cash.

Scot_39

Albermarle said:

squirrelpie said:

Whilst I agree with the general advice not to rush, it's worth noting that HL are presently offering cashback for pensions transferred to them, but only if you apply by 16 March, so it might be worth making some decisions promptly https://www.hl.co.uk/features/cashback
With regards to investments, it's also worth noting that HL limit the fees they charge on shares, including investment trusts, and on ETCs but not on funds, so it can be worthwhile to restrict your investments.

From HL website

You will need to register for the cashback offer and apply to transfer by 16 March 2023 to qualify. If you’d like a three month extension let us know

You need to specifically register for the extension.

Thats weird - the offer letter I have says 6 months.

Dziet_Sma

draiggoch said:

Can you log in to the Pensions trust website to view your pensions? I used to have a DB and DC with them, they were linked in that the DC pot could be used towards the tax free amount in relation to the DB scheme value.

Yes you can, I have checked all of them. I think I will do as advised and transfer one of the smaller ones into a SIPP and see about managing that for a year, get my head round it and take a view on the rest later. Hopefully get some cashback too.

Thanks for all the comments.