TRANSFER to a SIPP

EdInvestor

Gatser wrote: »

I therefore planned to transfer the 40% (Equities) to a SIPP so I could use drawdown in 2-3 years. (My IFA knew this)

However, Std Life now tell me that the GPPP is ONE POLICY and cannot be part transferred to a SIPP. So it appears the whole GPPP is locked until I get to age 60, I cannot afford to lose 25% on the WP fund.

There is a way out of this, given that the WP fund is likely to show low growth (4-5%) in future and you cannot rely on the removal of the MVR at NRD.

This is to transfer the entire pension over to a low cost SIPP now, reinvesting in quality funds. Then, when you reach 50, put 40% of the fund into " phased" drawdown ( much the same same as you had planned) leaving the other 60% to grow until you get to 60.

Almost certainly you will be able to do as well with this plan as staying at SL with 60% in the poorly performing WP fund and of course you would have access to drawdwon income as planned.

You would need to open a new GPPP to receive additional employer contributions.

Gatser

EdInvestor wrote: »

There is a way out of this, .....This is to transfer the entire pension over to a low cost SIPP now, reinvesting in quality funds.....
You would need to open a new GPPP to receive additional employer contributions.

I am afraid... this is the conclusion that I was coming to!
SL will guarantee taking my money for the next 12 years and a WP return of 4% (wow...thanks!), locking me into the deal. But at the end I may still lose a whopping great MVR... which could be even higher than the current 25% for all I know!

At least with a low cost SIPP , I make the decisions and gain/suffer by them.
AND I can decide how and when I take drawdown.
As always... I will consider this carefully but it must be a serious consideration.

As for new GPPP... it might be even easier to just get Company contributions made to the new SIPP :T