Pension move. Loss in value?

jazzy23

OK after much reading, some advise and lots of thinking I am moving my old personal pension to a sipp. I have found the platform  (fidelity) and funds (3 trackers) but, I read that when you transfer your pension you can lose value as original platform sells funds and transfers  as cash. Then you invest in funds. That's all clear. But,
Should I be worried about how much I might lose when the original funds are sold? Before people ask,  There is no penalty fee for moving. I lose no benefits its just an old personal pension with little investment  choice not performing. 

El_Torro

Yes, you can lose gains by being in cash for some days or weeks. You can also benefit because if fund values drop after you sell you don’t lose anything because you’re in cash. 

Some people will tell you you’re better transferring investments as funds rather than cash (this may not even be possible depending on what you transfer from and to). Personally I think that missing out on a couple of weeks worth of gains is nothing to worry about, just do the cash transfer.

gm0

You will be in cash.  From the "sell" trade day (fixing a price).  To the "buy" trade day - on the new platform.  The market will move.  Up. Down. Sideways.  All of the above during the few days that represents.

In most cases there will be a trade settlement for the sell (two days) and some money transfer delay after that for the cash.  And some workflow - before you can press "go" on reinvestment and when that trade executes - the market re-entry is done.  All in one week end to end sometimes happens.  Within two weeks is quite common depending what day you issue instructions and what day they get applied.

You may win. You may lose.  If there is an immense volatility spike - just at the critical moment.  This is bad.  The other 99% of the time.  It's noise.  And there isn't anything you can really do about it.

It is a nervous moment.  I do understand - having done it.

Inspecie transfer is unlikely to be available for old occupational insured pension special funds.  As they won't exist the other end.  If something is available at both ends.  You can invest in that.  And make the transition "not in cash" by asking for in specie - (re-registration).  But you are now subject to the investment performance of whatever that fund is.  Which may not be your desired or usual investment. So I personally would not go there.

Courage dear heart.

LHW99

Also, even if you are around retirement, at least part of those funds are likely to be invested for a while (unless you are buying an annuity, when you would stay in cash anyway).

After 10-20 years, whatever drop (rise) happens during those couple of weeks will be just noise.

artyboy

I'm in the process of moving about £200k and it can't be done in-specie. The cash has just been realised for the transfer so I'm naturally hoping for a major market correction over the next few days 

pterri

I moved £5k from an ISA to a SIPP a few weeks back when there was a glitch in the matrix, I ended up being about 2% better off. Just life innit.