Should I move old Standard Life pension to Vanguard SIPP?

loosely123
Forumite Posts: 3
Newbie

Hi,
Husband hoping to retire in 5 years at 55. He has £200K in an old workplace scheme with SL. It's in the default scheme with retirement age set to 65 but is already starting to derisk. It is slightly down on value from a year ago. I'm thinking we should move to his Vanguard SIPP which is currently 100,% Global All Cap. Is this a good idea? SL charge is 0.45% so not excessive, it's the lack of growth which is main concern. The main thing putting me off moving is time out of the market. Any thoughts would be appreciated 👍
Husband hoping to retire in 5 years at 55. He has £200K in an old workplace scheme with SL. It's in the default scheme with retirement age set to 65 but is already starting to derisk. It is slightly down on value from a year ago. I'm thinking we should move to his Vanguard SIPP which is currently 100,% Global All Cap. Is this a good idea? SL charge is 0.45% so not excessive, it's the lack of growth which is main concern. The main thing putting me off moving is time out of the market. Any thoughts would be appreciated 👍
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Comments
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loosely123 said:Hi,
Husband hoping to retire in 5 years at 55. He has £200K in an old workplace scheme with SL. It's in the default scheme with retirement age set to 65 but is already starting to derisk. It is slightly down on value from a year ago. I'm thinking we should move to his Vanguard SIPP which is currently 100,% Global All Cap. Is this a good idea? SL charge is 0.45% so not excessive, it's the lack of growth which is main concern. The main thing putting me off moving is time out of the market. Any thoughts would be appreciated 👍
Also...when is his birthday? Minimum pension age increasing for most people on 6 April 2028 from age 55 to age 57.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
SL charge is 0.45% so not excessive, it's the lack of growth which is main concern.That isn't down to the pension or SL. That is down to the fund choice. If you have the same funds in the SL pension as you do in the Vanguard personal pension then you would have the same returns (or close if similar funds are used rather than exact).
Vanguard trackers are not the best trackers in many areas. No single fund house has the best funds in all areas. So, how does the SL pension fund offering compare to Vanguard?
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
dunstonh said:
Vanguard trackers are not the best trackers in many areas. No single fund house has the best funds in all areas. So, how does the SL pension fund offering compare to Vanguard?
Is there a single measure you can look at? I tended to look at the long term training returns but this might not be the right thing to check?
Also does the "best" change over time? Since investments are long term I guess once you have picked one you have to stick with it for at least some years?
For example is there a "best" all round Global all world equity tracker and if so which one? I was looking at the HSBC one and the Vanguard one recently.0 -
loosely123 said:Hi,
Husband hoping to retire in 5 years at 55. He has £200K in an old workplace scheme with SL. It's in the default scheme with retirement age set to 65 but is already starting to derisk. It is slightly down on value from a year ago. I'm thinking we should move to his Vanguard SIPP which is currently 100,% Global All Cap. Is this a good idea? SL charge is 0.45% so not excessive, it's the lack of growth which is main concern. The main thing putting me off moving is time out of the market. Any thoughts would be appreciated 👍
Note that the Standard Life fee is all-in, no separate platform or dealing fees. Vanguard has a platform fee plus fund fee, so ensure you are comparing like for like. Additionally, Standard Life gives significant discounts on the listed fund fees, so check your actual charges on your personal statement.
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Does your husband have the risk appetite for being 100% in equities especially being so close to retirement?
you are worried about transferring it due to market movements but what if the markets went down say 50% in the next few years before he is due to claim the pension, how would that effect retirement?0 -
How does one assess the performance of a tracker / index fund?
Compare other trackers using the same benchmark. Vanguard often only partially replicate an index and that can cause a bit more volatility than other trackers with full replication. Vanguard also use slightly different benchmarks to the majority of others with some of their trackers. So, getting an exact like-for-like is not always possible.
Effectively, the differences (of same benchmark trackers) will be down to tracking error and charges.
Vanguard has one of the widest ranges of trackers available but in the mainstream areas, they are not necessarily the cheapest or best. Differences will be tiny though.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
loosely123 said:Hi,
Husband hoping to retire in 5 years at 55. He has £200K in an old workplace scheme with SL. It's in the default scheme with retirement age set to 65 but is already starting to derisk. It is slightly down on value from a year ago. I'm thinking we should move to his Vanguard SIPP which is currently 100,% Global All Cap. Is this a good idea? SL charge is 0.45% so not excessive, it's the lack of growth which is main concern. The main thing putting me off moving is time out of the market. Any thoughts would be appreciated 👍
It would probably be better to be in a more middle ground investment portfolio, whether with SL or Vanguard( or both)
The choice of pension provider is much less important than the the choice of investments within the pensions.0 -
Useful little video here for comparing investment returns
https://www.youtube.com/watch?v=4UzfgPTkktg
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