Updated after seeing IFA before I drawdown (L&G pension)? & SJP keen to combine

DeadlyD

Hello Forumites,
Forgive me if this is a basic question but having received the very best of advise in transferring an old DB pension into my workplace L&G, I'd like to know your views. 
Some of you will recall, I managed to transfer a DB pension with Pensionhelp and combine into my workplace pension with L&G whilst I was employed. I have since taken a package to leave my long term profession, I volunteer and have retrained but don't expect to earn much if at all. I don't intend to drawdown until next financial year (58yrs). 
In 2020, considering retirement plans I combined 2 DC pensions with SJP, on the understanding the Financial Advisor would look at transferring my old DB pension, the advise was it would be impossible, unless you could prove you had significant funds and only the super wealthy are able to transfer a DB. I turned to this forum in my frustration and research. I was educated to the actual facts along with significant knowledge and major life considerations, that 4 or 5 Financial Advisors were not able to provide or were transparent about. I'm now tied in with SJP until 2025, fund is worth £140k (transferred £125 in 2020, so has performed). 
I had a regular call with the SJP FA, who is now keen to look at my L&G workplace and combined DB plan. I will not be transferring to SJP given the ambiguousness over such a life changing issue. But this had led me to consider that the L&G pension (£193,000) hasn't performed - even before 2020, but has recovered the losses in 2020/1. Its a WPL_ LEGAL & GENERAL WORKSAVE PENSION SCHEME E. 
Should I transfer to a drawdown pension, or stay with L&G?  I can't find anything about how much a personal pension fund should perform and am confused, I do know I don't want a SIPP if this means I manage the fund myself and now I have a distrust of Financial Advisors although Pension Help were excellent. 
Thanks for taking the time to read and any pointers so I can make the most of my retirement would be hugely welcome.
DeadlyD

dunstonh

Should I change Pension Provider before I drawdown (L&G pension)? & SJP keen to combine

Very often it is best to combine and move to a modern product but not always.

SIP are sales reps.  So, they would want you to move it to them.

 I'm now tied in with SJP until 2025, fund is worth £140k (transferred £125 in 2020, so has performed).

Given the high annual cost of SJP pensions, it is still often cheaper to transfer to alternatives even during their exit charge period.

Should I transfer to a drawdown pension, or stay with L&G? 

With the limited information we have the answer is effectively yes if it is suitable to do so or no if it is not suitable.  

Without analysing the existing pension (i.e. does it support the method of drawdown you would use - many workplace plans only offer limited functionality) and comparing it with the options you would have selected (DIY well and it could be a much better option.  DIY badly and it could be a far worse option).

 I can't find anything about how much a personal pension fund should perform and am confused, I do know I don't want a SIPP if this means I manage the fund myself and now I have a distrust of Financial Advisors although Pension

personal pensions can have as little as one investment fund or 30,000 different investment options.   You have the same potential management decisions on a PPP as you do a SIPP.   There are hardly any personal pensions left nowadays as SIPPs have become the mainstream option.   It is probably unfair to say you should distrust FAs.  However, you do need to be aware that they are sales reps of the companies they represent.  So, there will be a bias towards that.    This is why you see time and again that you should either use an IFA or DIY.

DeadlyD

Thanks @dunstonh
The L&G is a PMC multi asset fund ... not sure what that is? a PPP - worksave pension. 
Can I ask how I would investigate possible funds and is a SIPP managed on my behalf - I see Pensionbee and H&L feature in rankings but am at a loss how I would evaluate a new provider. 
Will be looking at options for an IFA locally. 
DeadlyD 

MallyGirl

a multi asset fund is one that has a mix of funds/bonds/cash/shares to meet a target which might be a risk level target or a split between equity and non equity target. Basically if you pick the one that matches your personal goals then it could be the only fund you need. Very easy if you don't want to get involved in investment choices. You must have a goal though. You are probably in the default choice but a little reading is needed to know if that is the best choice for you.
My work pension is with L&G and there is a website I can log in to with info about the funds.

xylophone

You might try here for an Independent  Financial Adviser.

https://adviserbook.co.uk/

Tick "confirmed independent" and any other specialism required when the menu comes up.

Or you could DIY.

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions


You might find these links of interest.


https://www.vanguardinvestor.co.uk/investing-explained/flexible-income


https://monevator.com/decumulation-a-real-life-plan/


https://monevator.com/dynamic-asset-allocation-and-withdrawal-in-retirement/

https://www.unbiased.co.uk/discover/pensions-retirement/planning-for-retirement/how-to-invest-during-retirement-to-protect-your-pension-pot


.

dunstonh

Can I ask how I would investigate possible funds and is a SIPP managed on my behalf - I see Pensionbee and H&L feature in rankings but am at a loss how I would evaluate a new provider.

Any rankings you see for any pension provider is just marketing.   There is no one-size-fits-all best option.  Most providers do not put themselves forward for all the various rating companies.   Best to ignore them.

No pension is managed for you on your behalf.  The pension provider is the administrator.   You select the funds/portfolio with any pension.      You selected the L&G fund you had. (possible that it is a default option for those that didn't select)

The funds you select will be managed by the fund manager.

The fund you have is managed by L&G (the fund house) but not L&G (the pension provider)

You probably need a multi-asset fund  (to keep it simple) but that can be on a SIPP.  The SIPP just gives you full choice from all the multi-asset funds available whereas L&G only show you their in-house one.  

DeadlyD

Thank you @dunstonh for clarity. 

I accepted the workplace pension as is, I suppose that’s why SJP was recommended to me by colleagues as they suggested the funds and manage. 

I’m stumped as to how to understand which to provider/s to evaluate for a SIPP considering the L&G isn’t performing well (1.3% increase since 2016) 

DeadlyD

xylophone said:

You might try here for an Independent  Financial Adviser.

https://adviserbook.co.uk/

Tick "confirmed independent" and any other specialism required when the menu comes up.

Or you could DIY.

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions


You might find these links of interest.


https://www.vanguardinvestor.co.uk/investing-explained/flexible-income


https://monevator.com/decumulation-a-real-life-plan/


https://monevator.com/dynamic-asset-allocation-and-withdrawal-in-retirement/

https://www.unbiased.co.uk/discover/pensions-retirement/planning-for-retirement/how-to-invest-during-retirement-to-protect-your-pension-pot

xylophone I will have a read through tomorrow! Mainly interested in finding a provider with funds for a SIPP that has a good ( at least market expectations) % return. 

JohnWinder

 I can't find anything about how much a personal pension fund should perform and am confused,

A pension fund might invest solely in UK shares and it should easily be able to get the performance of the UK stock market, give or take a bit; many do and they’re easy to identify.  There are plenty of these funds, and they’re a dime a dozen. Similarly, in global stocks or government bonds. If your fund is half UK stocks and half UK bonds, it should have done as well as half the returns of the UK stock market plus half the returns of the UK bond market, in other words as well as the ‘dime a dozen’ funds that copy those markets. If your fund did better or the same, it was good; if it did worse it was a dud because you could have easily had a fund that would have done better. Personal investing was never easier.

LHW99

Was your L&G fund a lifestyling one?

If so, its aim would be to preserve the income that you might receive from an annuity at retirement, and that is still likely to be the case, since the decrease in fund value would be balanced by the increase in interest rates seen recently.

DeadlyD

LHW99 said:

Was your L&G fund a lifestyling one?

If so, its aim would be to preserve the income that you might receive from an annuity at retirement, and that is still likely to be the case, since the decrease in fund value would be balanced by the increase in interest rates seen recently.

Navigating the website only produces that it is a PMC multi asset Fund3  workplace  I spoke to L&G and they were pretty useless. Looks like I need to find a decent IFA - I'm astonished how difficult it is, obviously there are thousands of choices but surely there must be a top 5 providers for straightforward investment of a pension worth £200k.