We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Sipp, consolidation or managed?

Hi, I have a question following on from my previous post. I'm still undecided what to do with the pension from my old employer. It's only worth around 6.5k. I know in the previous thread I was told to look at a sipp. But, I'm not sure I'm confident enough or equipped with the knowledge yet to pick my own investments. I think I would feel more comfortable it being in a managed global multi asset fund. So with that in mind, should I just consolidate it to my L&G current employer pension or transfer to something like Nutmeg? (Fee free for 12 months) And then potentially transfer to a full sipp when I have more confidence and knowledge around picking investments and funds.

Thanks again

Rich
«1

Comments

  • Albermarle
    Albermarle Posts: 25,982 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
     But, I'm not sure I'm confident enough or equipped with the knowledge yet to pick my own investments.

    Yet you have picked an investment.  I think I would feel more comfortable it being in a managed global multi asset fund.

    Probably best though to avoid an actively managed fund, as they tend to cost more. Most would go for a low cost passively managed multi asset fund, such as the HSBC Global strategy range( widely available on most SIPP platforms)
  • El_Torro
    El_Torro Posts: 1,714 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    Based on what you say I don't see a problem in putting this money in L&G, your workplace pension. As long as you're happy with how your workplace pension is invested.
  •  But, I'm not sure I'm confident enough or equipped with the knowledge yet to pick my own investments.

    Yet you have picked an investment.  I think I would feel more comfortable it being in a managed global multi asset fund.

    Probably best though to avoid an actively managed fund, as they tend to cost more. Most would go for a low cost passively managed multi asset fund, such as the HSBC Global strategy range( widely available on most SIPP platforms)
    Is there anywhere impartial I can compare sipp's?
    I would want a passive managed multi asset fund. I guess a platform that charges a % rather than a fixed amount would be better due to the low amount I'll be transferring. 

    Thanks 
  • noclaf
    noclaf Posts: 964 Forumite
    Part of the Furniture 500 Posts Name Dropper
    If you are unsure about investment choices I would hold fire for now untill you are more comfortable, there is no rush and best to make important decisions from an informed position rather than make decisions you regret later or end up chopping and changing investments later.....and incurring trading fees along the way. I have been there and got the t shirt so speaking from experience.

    FWIW I am going through a similar process for my wife's old work pensions, to be honest if her old pension schemes had a decent selection of funds with reasonable fees I probably leave them as they are and just tweak the fund selection as required....easy, quick and minimal time required.

     I did consolidate my old pensions into a SIPP however I had one pension which was pricey in terms of fund fees and the fund choices were poor as well as a clunky user interface. My other pension with Standard Life was much better in all respects but the SIPP was ultimately cheaper (based on platform fees and the size of my combined pots) so made sense for my circumstances.
  • LHW99
    LHW99 Posts: 4,951 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Babystep7 said:
     But, I'm not sure I'm confident enough or equipped with the knowledge yet to pick my own investments.

    Yet you have picked an investment.  I think I would feel more comfortable it being in a managed global multi asset fund.

    Probably best though to avoid an actively managed fund, as they tend to cost more. Most would go for a low cost passively managed multi asset fund, such as the HSBC Global strategy range( widely available on most SIPP platforms)
    Is there anywhere impartial I can compare sipp's?
    I would want a passive managed multi asset fund. I guess a platform that charges a % rather than a fixed amount would be better due to the low amount I'll be transferring. 

    Thanks 

    Its the funds you want to invest in (that global multi asset one / global tracker) that you compare. The SIPP is just "wrapping paper".
    Some SIPPS charge a bit more (on top of the fund charges) to hold things and do the legal stuff than others, but on the amount you're talking about any of the common ones mentioned here would be fine.
    L&G usually have a small range of funds in a workplace pension, so you could transfer your £6.5k over as cash to that, and look at what is available there.
  • Albermarle
    Albermarle Posts: 25,982 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    L&G usually have a small range of funds in a workplace pension, so you could transfer your £6.5k over as cash to that, and look at what is available there.

    OP- have you done this ? That is looked what investments are available in the L&G pension, before opening a new pension?

  • QrizB
    QrizB Posts: 15,262 Forumite
    10,000 Posts Third Anniversary Photogenic Name Dropper
    edited 27 August 2023 pm31 1:45PM
    Babystep7 said:
    Is there anywhere impartial I can compare sipp's?
    I would want a passive managed multi asset fund. I guess a platform that charges a % rather than a fixed amount would be better due to the low amount I'll be transferring.
    There's a useful comparison here:
    https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Shell (now TT) BB / Lebara mobi. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 33MWh generated, long-term average 2.6 Os.
    Not exactly back from my break, but dipping in and out of the forum.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
  • dunstonh
    dunstonh Posts: 118,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I would want a passive managed multi asset fund. 
    No such thing.  By their very nature, multi-asset funds are active.    They can use underlying passive funds but how much that gets allocated to each underlying tracker and which regions/countries and asset classes they use are all management decisions.



    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.
  • r6mile
    r6mile Posts: 258 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 27 August 2023 pm31 4:29PM
    Given it’s a small amount of money I would suggest you transfer into your existing workplace L&G pension. That’s what I am about to do - merge a £10k nutmeg personal pension into the Civil Service AVC scheme (which is run by L&G).

    L&G have a range of multi-asset funds - I have chosen the Future World ESG Multi-Index 7 Fund - but there are others depending on your risk appetite, and whether you want ESG or not, etc. I was invested in the sustainable option with Nutmeg and the fees for this are much lower.
  • L&G usually have a small range of funds in a workplace pension, so you could transfer your £6.5k over as cash to that, and look at what is available there.

    OP- have you done this ? That is looked what investments are available in the L&G pension, before opening a new pension?

    I have 2 pensions with L&G. 1 which my employer started and 1 which was carried over when my employer switched to L&G. Both have different funds available for me to select. The 1 which was carried over from an old pension has 139 funds to choose from!! And if I'm honest, seems a bit overwhelming. And I guess that's what would be available if I transfer the Virgin pension to them. I've attached a screenshot of the different firms providing the funds. My current employer pension only has 16 funds to choose from.

     I hope that makes sense?

    Thanks

    Rich
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.9K Work, Benefits & Business
  • 617.2K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.