Transferring 8 Pensions into Vanguard SIPP - Good Idea?

info_maniac

I have been lazy with my pension pots over the years through different employers and those pots have just been sitting there with exorbitant fees and poor growth. I am now planning to do something about it before it is too late, I am in my 40s.

The pensions I have are a combination of small and big pots with the likes of Aegon, Aviva, Nest, Now, HL and are a mix of Group Personal Pension Plan, SIPP, Workplace pension etc

I am planning to get them all transferred to a new Vanguard SIPP. I am not sure if this is a good idea or should I look elsewhere for a new provider (possibly ii or AJ Bell or even stay with HL).

All the pensions I have at present should be able to be transferred through the Origo service and hopefully I should not have any delays or issues. However, I am not clear on these items:

- Should I instruct Vanguard to transfer the 8 pensions all in one go OR should I stagger the transfer instructions?
- I am not planning to do an In-Situ transfer, so will get the funds credited into the new Vanguard account as cash. Should I be investing this a lumpsum or should I set-up a regular buy instruction for my chosen funds using the cash in my Vanguard SIPP. The funds I have shortlisted are:

FTSE Global All Cap Index Fund - Accumulation

FTSE Developed World ex-U.K. Equity Index Fund - Accumulation

U.S. Equity Index Fund - Accumulation

VHVG - FTSE Developed World UCITS ETF - Accumulating

VWRP - FTSE All-World UCITS ETF - Accumulation

VUAG - S&P 500 UCITS ETF - Accumulation

- To complicate the situation, I am planning to move away from the UK and live permanently in either UAE or Malaysia with no plans to come back and am looking at a possibility of transferring this Vanguard SIPP to a QROPS scheme in my destination country. I am not completely aware of the tax implications of doing a QROPS transfer and am not clear that even if I should do a QROPS transfer at that point when I move or just leave the Vanguard pot here. I have heard a few stories about issues transferring in and out of Vanguard (some threads here) so am not sure if even thinking about a QROPS transfer out of Vanguard is a good idea. Any pointers, suggestions will be helpful. P.S. - I can go for professional advice on the above, but as I have got the funds I want to invest in identified I am not sure if any advisor will be interested in my questions as I won't be buying anything they will try to sell to me.

El_Torro

I have no personal experience with Vanguard though like you I have read comments here about people having issues with them. Something to bear in mind at least. 

Personally I would keep at least two pension providers. I wouldn't be too concerned about bankruptcy at the provider, though IT issues and other problems at one provider might mean you're thankful to have a backup. 

Since you're planning to leave the UK this does complicate things. I have no idea what QROPS is so hopefully someone else can advise on that.

dunstonh

I have been lazy with my pension pots over the years through different employers and those pots have just been sitting there with exorbitant fees and poor growth. I am now planning to do something about it before it is too late, I am in my 40s.

With one or more of your pensions, you will be increasing your charges by moving it to Vanguard.

- Should I instruct Vanguard to transfer the 8 pensions all in one go OR should I stagger the transfer instructions?

Personal choice.

- I am not planning to do an In-Situ transfer, so will get the funds credited into the new Vanguard account as cash.

You don't have the choice anyway.

Should I be investing this a lumpsum or should I set-up a regular buy instruction for my chosen funds using the cash in my Vanguard SIPP. The funds I have shortlisted are:

FTSE Global All Cap Index Fund - Accumulation

FTSE Developed World ex-U.K. Equity Index Fund - Accumulation

U.S. Equity Index Fund - Accumulation

VHVG - FTSE Developed World UCITS ETF - Accumulating

VWRP - FTSE All-World UCITS ETF - Accumulation

VUAG - S&P 500 UCITS ETF - Accumulation

Phasing results in the worst outcome in the majority of time periods.  Some people do it because they think they are reducing risk.   However, you seem to be considering a higher risk approach and you are already invested.  So, risk isn't really an issue for you.

You have a lot of overlap in those funds.  and a couple seem unsuitable for the range you have selected.   You are making it over complicated.

Albermarle

I have been lazy with my pension pots over the years through different employers and those pots have just been sitting there with exorbitant fees and poor growth

Just remember it is not the pensions that grow, but the investments inside them.

If those current investments were similar to the ones you have picked for the future, they would have presumably done OK. If growth has been poor it probably means that the money has been left in the pensions default funds and never moved?

Workplace pensions rarely have exorbitant pricing nowadays, although older ones may well be more expensive than newer ones.

Your new investing strategy is quite high risk, but with maybe 20+ years to go, it should pay off.

However you have global index funds that will contain 60 to 65% US stocks, and then you have two US only ones. If the US markets have a bad run, then you are very exposed.

Mozza001

I moved some money from HL to Vanguard which went very smoothly.
This was a mistake as I have had to move some back to HL to utilise the small pots, and has been a nightmare.

Depending on WHEN you want to transfer out from Vanguard, give yourself plenty of time.

If this is your main/ all your pot and is a significant amount I'd pay someone (IFA) to look after it,  takes all the questions/stress out of it.