Transferring workplace & private pension (L&G & SJP) via IFA - UPDATE

dunstonh

Are you saying Aviva are a budget option which would mean not as much growth as a more expensive provider? 
Its a SIPP - but managed by the IFA for .75% then?

Aviva is a SIPP. Its whole of market with around 30,000 different investment options.  Performance is not an issue.  

I refer to it as budget in terms of quality and functionality.    Not everyone needs all the functionality but some do.  For example, the other day I did a £16,760 UFPLS, payable to the cash account of the platform, moved £2,880 back into the pension,  several thousand into the ISA and paid the rest out to the client bank account.      Aviva doesn't have a cash account.  So, I couldn't do that as easily with Aviva as it would pay the whole lot out and require the person to then send the money to the ISA back and the money to the pension back (two payments).    Whereas platforms with a cash account don't need to do that.       If you are single wrapper, then that doesn't matter.   Aviva's front end is very basic.   As an adviser, there is very little to tell you what transactions are happening or even if something you just keyed in as actually in process or what stage.

The IFA recommended Aviva it seemed based on his relationship with them that rang a few alarm bells as to whether they are the best option for my funds, which I wont be contributing into anymore, taking the minimum I can but need to see a good % growth as this pension combined needs to last me for 20 yrs plus given the transfer fee, annual charge (.75%) I want to make the right decision now as the L&G plan is stagnant. 

The whole of market platforms all offer the same investments but its their front end screens, configuration and functionality that differs.   Platforms are a bit like supermarkets in that respect.  The same goods but different shopping experience.    So, you could get one person that loves a particular supermarket/platform and someone else that prefers a different one.

And the performance .. over the last 12months Aviva hasn't performed as well as SJP 

That's irrelevant with whole of market platforms and its worth noting that much of the time, performance differences are down to asset allocation/risk differences.     

The worst, the best and the average investments will all have a short term period when they are top, bottom or middle.  Its long term that matters when you are talking about long term investing.  Not short term discrete periods.

xylophone

And the performance .. over the last 12months Aviva hasn't performed as well as SJP 

Have you looked carefully at the Funds/ETFs/shares etc held in each pension?

If you are satisfied with the performance of those in SJP, would they be available to you within a SIPP?

DeadlyD

xylophone said:

And the performance .. over the last 12months Aviva hasn't performed as well as SJP 

Have you looked carefully at the Funds/ETFs/shares etc held in each pension?

If you are satisfied with the performance of those in SJP, would they be available to you within a SIPP?

I haven't yet but will do.
But as Dunstonh comments Aviva is a SIPP and all the platforms use the same software its just the front end thats the main difference, if I transferred to a SIPP with Aviva will I have the same results as the IFA? 
This FY I will be charged £5500 (not taking into consideration the loss of £1400 on the SJP early withdrawal charge. Then ongoing anything between £2500 - £3500 pa. Is it worth paying this for an IFA to manage a SIPP that I can do.. not being controversial I just want to understand what my risks are if I have a ready made packaged fund, or what the benefits are for my money? 

xylophone

You have grasped that the performance of your pension is dependent on the investments it holds (although you will take into account fees/charges made by the provider)?

Thus if the adviser chose different investments from the ones you chose, he might achieve a better result but equally  he might do worse.

An adviser does not have a crystal ball but he does have the advantage of having studied  the subject of (inter alia) investing for and during retirement.

Aviva clearly offers a DIY option for a SIPP but there are many other providers.

https://www.aviva.co.uk/retirement/aviva-pension/

Do you feel confident enough to open and manage a SIPP without advice?

This is rather old now but was often mentioned on the forum as a good read

https://www.amazon.co.uk/DIY-Pensions-Simple-Retirement-Planning-ebook/dp/B00B7QN8XM

You might find this article of interest particularly the decumulator's portfolio.

https://monevator.com/investment-portfolio-examples/

How about a new career now you have time on your hands?

https://nationalcareers.service.gov.uk/job-profiles/financial-adviser#:~:text=To do this, you'll,from the Chartered Insurance Institute

gm0

An advisor will examine your circumstances and financial goals.  And thus bound what risk you have to/can take. And your attitude to speculative investment - which may alter where  it lands a little. 

And then recommend a tiered portfolio to target those goals.  X income from Y pot over Z years, inheritance objectives etc.  Asset allocation, rebalancing, extraction method etc.

You can do this yourself.  Or let a pension consolidator perform advice lite on you and take you through a similar regulated fact discovery journey to a risk category and a recommended provider and portfolio.  Which is the "cheap seats" version of advice.

If you then buy a "same risk tier" packaged portfolio DIY or you build one out of individual funds - you get pretty much the same result on investment returns and platform and fund management charges. 
And you win by the "not paid" initial and ongoing advice fee.  On investment returns net all fees for your setup

My strongly held view it that the value of the advice is external to the portfolio selected or its potential returns.  If you need the helping hand, the guidance, dislike the admin, have no desire to learn enough to do this without screwups yourself then - there is the value to you. 

Don't look for it in the selected investments though.  Portfolios are not magically better or worse because they are adviser introduced.  They are either close to passive, or active bets (tilts) on investment markets.  And prove correct or not on their merits as bets at a point in time.  The adviser doesn't have skin at that game.  Only the the bet was a suitable one for someone like you to take.

DeadlyD

xylophone said:

You have grasped that the performance of your pension is dependent on the investments it holds (although you will take into account fees/charges made by the provider)?

Thus if the adviser chose different investments from the ones you chose, he might achieve a better result but equally  he might do worse.

How about a new career now you have time on your hands?

https://nationalcareers.service.gov.uk/job-profiles/financial-adviser#:~:text=To do this, you'll,from the Chartered Insurance Institute

I've grasped the concept - yes! And fair enough its their profession, so its the expertise and management that I want value for money, not a front end that's just a pre-packaged fund. Guess this a question I can present.
A new career? well I'm retraining as a therapist and I volunteer so hopefully the rest of my days will be fulfilling helping people but not with their pensions or money  

DeadlyD

gm0 said:

An advisor will examine your circumstances and financial goals.  And thus bound what risk you have to/can take. And your attitude to speculative investment - which may alter where  it lands a little. 

And then recommend a tiered portfolio to target those goals.  X income from Y pot over Z years, inheritance objectives etc.  Asset allocation, rebalancing, extraction method etc.

You can do this yourself.  Or let a pension consolidator perform advice lite on you and take you through a similar regulated fact discovery journey to a risk category and a recommended provider and portfolio.  Which is the "cheap seats" version of advice.

If you then buy a "same risk tier" packaged portfolio DIY or you build one out of individual funds - you get pretty much the same result on investment returns and platform and fund management charges. 
And you win by the "not paid" initial and ongoing advice fee.  On investment returns net all fees for your setup

My strongly held view it that the value of the advice is external to the portfolio selected or its potential returns.  If you need the helping hand, the guidance, dislike the admin, have no desire to learn enough to do this without screwups yourself then - there is the value to you. 

Don't look for it in the selected investments though.  Portfolios are not magically better or worse because they are adviser introduced.  They are either close to passive, or active bets (tilts) on investment markets.  And prove correct or not on their merits as bets at a point in time.  The adviser doesn't have skin at that game.  Only the the bet was a suitable one for someone like you to take.

Thanks @gm) I have a simple plan which will be based on UFPLS, with no debt, a husband still working and basically the pension is mine (ours) to spend during my lifetime. So I get the external value of lifestyle management advice in its totality, but that's not what I need. I suppose the question is, I am capable of managing a SIPP? or is £5500 yr1 + £2,500 - £3,500 ongoing worth an IFA managing the SIPP? Or am I get hung up on the IFA fees?

xylophone

You should also take into account that in around ten years time, if still in the land of the living (and if you aren't you won't be worrying ) you will have a state pension.