Splitting Pension Pots

murf_brod_mutts

I have a £90,000 pot with The Peoples Pension which I am drawing down. I have another fund worth £122,000 maturing with Royal London in a few months. I do not wish to buy an annuity, but wonder if putting all my money in one place is a good idea or would it be safer placing this amount elsewhere ?

eskbanker

What do you mean by a fund maturing in this context, is this a DC pension pot or something else?

Marcon

murf_brod_mutts said:

I have a £90,000 pot with The Peoples Pension which I am drawing down. I have another fund worth £122,000 maturing with Royal London in a few months. I do not wish to buy an annuity, but wonder if putting all my money in one place is a good idea or would it be safer placing this amount elsewhere ?

Safer in what sense? Are you concerned about FSCS protection being limited to £85K? If so, see https://forums.moneysavingexpert.com/discussion/comment/81117767#Comment_81117767

Albermarle

Why can you not just leave both the PP and RL pensions where they are ?

murf_brod_mutts

eskbanker said:

What do you mean by a fund maturing in this context, is this a DC pension pot or something else?

Sorry wrong terminology, I am retired and approaching my chosen retiral date on the policy. I want to be able to drawdown as required and i am unable to do so with RL. I could leave it where it is for now, but RL fees are steep comapred to Peoples Pension

AlanP_2

What sort of drawdown do you want to do?

I'm with RL and not found anything I can't do if I want to.

As for fees I think they are very good, I'm paying 0.25% all in after allowing for the annual mutual society rebate of 0.15%.

I don't know how that compares to PP but it compares very favourably with most SIPP providers who work on a percentage basis.

Albermarle

AlanP_2 said:

What sort of drawdown do you want to do?

I'm with RL and not found anything I can't do if I want to.

As for fees I think they are very good, I'm paying 0.25% all in after allowing for the annual mutual society rebate of 0.15%.

I don't know how that compares to PP but it compares very favourably with most SIPP providers who work on a percentage basis.

Someone with a £90K pot with PP, will be paying 0.2% + £4.50 pa.

So a very small difference.

murf_brod_mutts

Yes I am concerned that if I have £200,000 all with Peoples Pension that only £85,000 is covered, but if I have money spread with 2 companies £170,000 will be covered ?

Albermarle

murf_brod_mutts said:

Yes I am concerned that if I have £200,000 all with Peoples Pension that only £85,000 is covered, but if I have money spread with 2 companies £170,000 will be covered ?

This £85K limit is mainly relevant for cash savings accounts. If you are with mainstream pension and investment providers, it is not really something to worry about. If Royal London went bust it would mean there must have been some kind of catastrophic  global event, in which case you would not be worrying about your pension.
See this recent thread ( one of many on a similar theme)
Have any SIPP/ISA Platforms Gone Bust - if so what happened — MoneySavingExpert Forum