Remain in workplace pension of transfer to SIPP

Employee123

Hi, I am currently invested in workplace pension (Scottish Widows Master Trust Adventurous targeting flexible access). This is due to start reducing the risk profile as I head closer to retirement between 55 and 67.

Looking at the options within the workplace pension there does not seem to be an option to stop the lifestyling being automatically applied.

I have been looking to discuss with a IFA to see if I would be better off removing the majority of my workplace pension for them to manage on my behalf on a more adventurous profile - I have other investments to cover off the risk of a major market correction over this period and we could move the funds closer to retirement if they grow substantially to de-risk.

will the cost of having a FA manage my pension potentially yield a better return than remaining in my current scheme?

secondly does anyone have any experience they can share / good and bad with regards to Fisher Investments or Nova Wealth?

artyboy

Employee123 said:

Hi, I am currently invested in workplace pension (Scottish Widows Master Trust Adventurous targeting flexible access). This is due to start reducing the risk profile as I head closer to retirement between 55 and 67.

Looking at the options within the workplace pension there does not seem to be an option to stop the lifestyling being automatically applied. Sounds odd, especially given the name of the fund you're invested in sounds geared to drawdown rather than annuity purchase.

I have been looking to discuss with a IFA sounds sensible to see if I would be better off removing the majority of my workplace pension for them to manage on my behalf on a more adventurous profile - I have other investments to cover off the risk of a major market correction over this period and we could move the funds closer to retirement if they grow substantially to de-risk.

will the cost of having a FA hold on, did you mean to drop the "I"? manage my pension potentially yield a better return than remaining in my current scheme?

secondly does anyone have any experience they can share / good and bad with regards to Fisher Investments or Nova Wealth? My question in return is why you're looking at wealth managers, with their lack of independence, relatively high fees, and limited product offering? That's at odds with your post title talking about a SIPP...

Comments in line. I can perhaps see why you may have been steered towards Fisher Investments, given their carpetbombing approach to online ads, but Nova is rather more niche - did you find this yourself or did a 'friend' recommend them?

Linton

Yes, even after IFA fees a non life-styled portfolio could potentially yield a better return that a life-styled one.  However it could potentially yield a worse one. The risk of a worse one decreases the longer the investment period.  Would a worse or even negative return be a problem? When are you planning to draw on the money and over what time period?
 
How severe is your scheme's life-styling - eg what is the % equity before it starts and at retirement age?

Can you achieve the same objective by setting your retirement date further into the future?

I have not heard of Nova Wealth but Fisher Investments are a very large US-headquartered multi-national company.  It is likely you would get a better deal from a small local IFA.

PS:
 - looking at Fisher's UK website it seems they are only interested in people with more than £250K to invest.  If you are at that level then using an IFA could be very worthwhile if you are not confident you have the skills to manage the money yourself.
 - I see no evidence that Fisher Investments are Independent Financial Advisers.

Pat38493

Do you understand what an IFA is as opposed to what companies like Nova and Fisher are doing?  If they are offering advice it's an FA (which is basically a salesperson) rather than an IFA.  

I think both those companies spend a lot of marketing money to try to get your business, but this does not mean they are the best.

If I were you I would not do anything you have either done a lot more research, or hired a proper IFA who is fully independent to help you.

Albermarle

Looking at the options within the workplace pension there does not seem to be an option to stop the lifestyling being automatically applied.

A short term fix is to change your retirement date on the SW website.

Normally this will have defaulted to 65, so just change it to 70 or 75, and this will delay the start of reducing the risk profile.

The retirement date the pension provider has in its system for you, has no effect on when you retire or when you can start to take the pension. ( currently 55 increasing to 57 in a few years)

xylophone

I am currently invested in workplace pension (

This the scheme provided by your current employer?

Have you checked on whether you would be able to transfer to a personal pension while you/emplyer still contributing?

You could check here for an adviser

https://adviserbook.co.uk/

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

 

sandsy

Can you not move your money into self-select funds within the workplace pension so that they avoid the default lifestyling? Most workplace pensions offer this option.