MasterTrust Pension Guidance - Please

JJforever

Dear All

I have an ex-employer pension scheme which is in a MasterTrust.  Since I left that employment I have been contributing towards a private pension scheme with Aviva.

My query is whether it is possible and perhaps cheaper to transfer the money in the Aviva scheme to the MasterTrust scheme? 

The obvious downside I can see would be a lack of choice regarding the funds available.

I will not be accessing the money for a few years yet but will want to set up an income drawdown set up which would be available.

Are there pros and cons to this? 

My ex-employer has suggested a financial adviser whom I can contact for advice (I believe they are linked to Aegon?)  My ex-employer states that they will not be getting any commission from them and the financial adviser will be offering 3 fixed-price advice services to members.  I'm also considering talking to an alternative financial adviser.  But before I speak to anyone I just wanted some guidance please.

Thank you in advance.

dunstonh

My query is whether it is possible and perhaps cheaper to transfer the money in the Aviva scheme to the MasterTrust scheme? 

In most cases it is possible.

Are there pros and cons to this? 

It depends on the terms and options of the scheme.  Some mastertrust schemes are very basic and offer limited investments and limited functionality.   They are there to build up money during working life as their primary function.

My ex-employer has suggested a financial adviser whom I can contact for advice (I believe they are linked to Aegon?)

Aegon do not have any financial advisers.

 My ex-employer states that they will not be getting any commission from them and the financial adviser will be offering 3 fixed-price advice services to members.

Commissions have been banned for over a decade.

Albermarle

My ex-employer has suggested a financial adviser whom I can contact for advice 

Pension schemes etc almost always say you should get financial advice. It covers their back in case you then do not get advice, and then make a mess of it and come back asking for compensation.

xylophone

I am rather puzzled by this.

As I understand it, a Master Trust is a Defined Contribution workplace pension scheme open to a number of unrelated employers.

You have left the  employer that offered this pension.

You are now contributing to an Aviva pension.  Is this another workplace scheme?

Is there any reason why you want to transfer Aviva to MT rather than the other way round?

And whichever way you do it,  are you sure that the scheme will offer the flexibility you require when you come to take benefits?

JJforever

xylophone said:

I am rather puzzled by this.

As I understand it, a Master Trust is a Defined Contribution workplace pension scheme open to a number of unrelated employers.

You have left the  employer that offered this pension.

You are now contributing to an Aviva pension.  Is this another workplace scheme?

Is there any reason why you want to transfer Aviva to MT rather than the other way round?

And whichever way you do it,  are you sure that the scheme will offer the flexibility you require when you come to take benefits?

Thanks to everyone for their replies.

In answer to your questions.  The Aviva scheme is not another workplace scheme.  It was set up separately before I was an employee and is a personal pension scheme.  The reason I am thinking of moving it to the MT scheme is purely to do with costs.  Aviva's platform fee is around about 0.4 - 0.6%.  The funds I am invested in are mostly but not all Aviva funds which are cheaper than the external funds.  I will still have the flexibility to move into a drawdown scheme in the MT.

I was just wondering if there was any specific reasons why this would be a bad idea?  

I realise the MT may not have as much flexibility in terms of fund choices that the Aviva scheme has but the options i.e annuity, income drawdown, lump sums, cash withdrawal will be the same.

JJforever

dunstonh said:

My query is whether it is possible and perhaps cheaper to transfer the money in the Aviva scheme to the MasterTrust scheme? 

In most cases it is possible.

Are there pros and cons to this? 

It depends on the terms and options of the scheme.  Some mastertrust schemes are very basic and offer limited investments and limited functionality.   They are there to build up money during working life as their primary function.

My ex-employer has suggested a financial adviser whom I can contact for advice (I believe they are linked to Aegon?)

Aegon do not have any financial advisers.

 My ex-employer states that they will not be getting any commission from them and the financial adviser will be offering 3 fixed-price advice services to members.

Commissions have been banned for over a decade.

Dunstonh

According to their website they are owned by Aegon UK, part of Aegon Ltd?

dunstonh

According to their website they are owned by Aegon UK, part of Aegon Ltd?

Ok, that is new.  I wasn't aware they had a salesforce now. 

LHW99

Are the proposed advisers independent? If you do use an adviser its best that they are.

JJforever

LHW99 said:

Are the proposed advisers independent? If you do use an adviser its best that they are.

This is what I am unsure about and will obviously check with them.  I find it interesting that my ex-employer are suggesting them and they are offering discounted advice.  That's why I will probably check with an alternative IFA too.  For me this is a big decision that I need to get right.

dunstonh

This is what I am unsure about and will obviously check with them.

They are not.  I found it on the internet:

JJforever

dunstonh said:

This is what I am unsure about and will obviously check with them.

They are not.  I found it on the internet:

Dunstonh

It is Origen Financial Services but I think you are probably right.

Thanks.