Any reason not to transfer DC pension from L&G to ii?

Shimrod

Pat38493 said:

Shimrod said:

@dunstonh @Pat38493 @gm0 Thank you for the replies. It's clear I need to rethink this a bit. I've started from a faulty assumption of being able to do an in specie transfer from L&G to ii and that isn't the case. Ignoring the fact that I would need to choose new funds time out of the market could easily cost more than the saving in fees over several years.

I still need to consider where these funds will go to provide a flexible draw down - L&G only allow one request for TFC and the whole pension is put into draw down - the UFPLS option must be set up over the phone and takes about 8 weeks to complete. I don't need to rush into this as the pension I am currently contributing to first (with Scottish Widows) does offer flexibility although I don't like the lack of information in the online dashboard (I cannot see any transactions and it does not show number of units for an investment - only as a percentage value of the overall pension).

as dunstonh said in the first reply, this is not something I need to get done immediately. I may just see if L&G become any more flexible over the next couple of years before reviewing again.

No guarantees but I wouldn't personally worry too much about the time out of market part - a week or two out of the market over a long term investment is neither here nor there and you might just as likely gain as lose with short term volatility.  Especially at the moment with interest rates on the up and equity returns (at least so far this year) pretty flat.  When I transferred into II I think I received quite a large cash interest payment a few weeks later as my funds had been sitting in cash for some days.

It doesn't take much of a market move to wipe out any fees saving I would otherwise make. I appreciate it could swing in my favour as well, but I'm going to defer the decision to move the funds as this move was in part because I was expecting to save on fees over the next few years and that is now an unknown.

handful

Just for the record, I transferred an old L&G workplace pension into a SIPP with ii and it was very quick and painless. There are always a few nerves when you are out of market but over a short period things move up and down generally fairly regularly so even if it means waiting a bit to reinvest you'd have to be extremely unlucky to suffer a big loss. Not impossible though!! I'm happy to have made that choice though.