Work Place Pension to SIPP

20122013

I am longer paying into my pension  and I am thinking of moving my work place pension from Scottish Widow (SW) selected by my ex IFA to DIY SIPP.

The current charges are : 

0.35% AMC for Scottish Widow

0.51% SW Veritas Asian CS8

0.954% SW Schroder UK Alpha Plus CS8

0.82% SW Royal London UK Equity Income CS8

0.968% SW BlackRock UK Special Situations CS8

1.02% SW Schroder US Smaller Companies CS8

0.47% Scottish Widows Property CS8

0.977% SW Schroder Tokyo CS8

0.845% SW JPM Emerging Markets CS8

0.825% SW JPM Natural Resources CS8

0.1% SW Pension Portfolio 2 CS8 

0.1% SW Global growth 2 CS8

(I have just remembered that I also have a  NHS pension about £2500 but no longer paying into it and not sure whether to keep it separate from SW), 


What do others think of these charges? can the same be done with better returns?

does it makes sense for me to use same approach as my selecting funds for my S&S ISA?  

I think I can only select funds for my Pension and Scottish Widow does not allow their funds to be transferred out so I will need to sell and buy new funds. I will select one fund and asked the new provider SIPP to make the request. Also, do I need to know when and how much I will be taking from my pension before I can decide on a platform?

Albermarle

(I have just remembered that I also have a  NHS pension about £2500 but no longer paying into it and not sure whether to keep it separate from SW), 

The NHS pension is a Defined benefits pension, so totally different from the Defined Contribution pensions such as the SW one. Presume you mean the NHS pension will pay £2500 per annum ?
It will not be possible ( and probably a bad idea anyway) to transfer it.
Pension basics | Help with pension basics | MoneyHelper

Most of the SW funds appear to be managed funds ( and quite a lot of them), which pushes the costs up.
If you DIY your own investments it is normally best to look mainly at low cost passive funds.

If you transfer the money will come over in cash. When it arrives at the SIPP provider, that will be the point to decide how to invest it.

Also, do I need to know when and how much I will be taking from my pension before I can decide on a platform?
Not really. If you choose a modern SIPP, they will be flexible on withdrawal options.

dunstonh

(I have just remembered that I also have a  NHS pension about £2500 but no longer paying into it and not sure whether to keep it separate from SW), 

You cannot pay it into the NHS pension and you cannot transfer the NHS pension out.

What do others think of these charges? 

Any discount on those charges in the plan?   CS8 plans can follow the default or have fund based or other discounts applied to them at product level.

If they are the only charges then they seem very reasonable. You expect managed funds to be more but the internal funds are cheap at 0.1%.

does it makes sense for me to use same approach as my selecting funds for my S&S ISA?  

You haven't mentioned what your approach is.  It could be ruddy awful or it could be very good but if we don't know, we can't offer opinion.

20122013

@Albermarle

Thanks for your reply, please see mine in Bold

Pension basics | Help with pension basics | MoneyHelper
I will check the link

My NHS pension started back in 2020 and has a contribution for 18 months and  a total of about £2500.

The SW funds and platform were selected by ex IFA, should it is likely they are managed funds, it seems the charges have 'eaten into my gain' about 4% return (not great but better than a minus).

If you DIY your own investments it is normally best to look mainly at low cost passive funds.
OK, I think I will choose one fund (vanguard life strategy) as it seems well diversified. If i need to change later I guess there will be charges.


If you transfer the money will come over in cash. When it arrives at the SIPP provider, that will be the point to decide how to invest it.
Does it mean I will have lost out on tax or lose out on something if I have to sell SW funds and buy after transfer (not sure of the termilogy). I am aware during the 'cash' transfer period I will not earn any interests.

Also, do I need to know when and how much I will be taking from my pension before I can decide on a platform?
Not really. If you choose a modern SIPP, they will be flexible on withdrawal options.
That's great to know! is there anything I am missing, as I had read a post which says that there is a charge if you transfter over an 'x' amount.  I guess I have to read all the small print. 

20122013

@dunstonh
(I have just remembered that I also have a  NHS pension about £2500 but no longer paying into it and not sure whether to keep it separate from SW), 

You cannot pay it into the NHS pension and you cannot transfer the NHS pension out.

Good to know, Can i make changes to the funds? (not easy to find answer from the team at NHS)

What do others think of these charges? 

Any discount on those charges in the plan?   CS8 plans can follow the default or have fund based or other discounts applied to them at product level.

If they are the only charges then they seem very reasonable. You expect managed funds to be more but the internal funds are cheap at 0.1%.

I called SW and no discount and all charges are deducted from my pension (only way to pay).  I had thought that the charges on the non SW funds are high

does it makes sense for me to use same approach as my selecting funds for my S&S ISA?  

You haven't mentioned what your approach is.  It could be ruddy awful or it could be very good but if we don't know, we can't offer opinion.

For my Pension at the moment I have left it out of my whole asset calculation (as seeing it as a bonus and I want to focus on my other assets) so I am thinking of getting one passive global index tracker same type of fund as the S&S ISA but will choose a different sector or weighting if that is all possible) It seems scottish widow has limited selection, hence I am thinking of moving to a SIPP,  

Albermarle

There seems to be some confusion here.

My NHS pension started back in 2020 and has a contribution for 18 months and  a total of about £2500.

The NHS pension is a Defined Benefit pension. For each year you work you build up an entitlement to an annual pension. There is no pot so I am wondering where the £2500 comes from?

Good to know, Can i make changes to the funds? (not easy to find answer from the team at NHS)

Again there are no funds , it is not the same as your SW pension.

Does it mean I will have lost out on tax or lose out on something if I have to sell SW funds and buy after transfer (not sure of the termilogy). I am aware during the 'cash' transfer period I will not earn any interests.

No tax involved, it is just a transfer from one provider to another. 
Although the process may take one to four weeks approx, you will only be in cash for a week at most.
You do not earn interest on investments, only on savings,

20122013

@Albermarle £2500 is the total amount paid into my pension from my salary.
I think I will need to leave my NHS pension as it is.   I will look at it again when I have sorted out SW etc.

LHW99

For a DB pension, the amount you (or your employer) pay in isn't relevant. You are accumulating a promise to pay a certain amount per year when you retire. There's usually some sort of increase / index linking if you have left the job and become a deferred member.

20122013

LHW99 said:

For a DB pension, the amount you (or your employer) pay in isn't relevant. You are accumulating a promise to pay a certain amount per year when you retire. There's usually some sort of increase / index linking if you have left the job and become a deferred member.

that's good to know - I will check this out. 

20122013

May I check this is correct, to calculate the total yearly charges: add up all the percentages (above)
7.957% x total fund value = total charges 

20122013

May I check this is correct, to calculate the total yearly charges for SW: add up all the percentages (above) 

7.957% x total fund value = total charges 

I am asking as the total charges is just 10% less than my current fund value,