Moving SIPP provider now

CrystalTipsbumbles

Guidance Please!
prior to the recent “tariff troubles” I was about to switch from Aberdeen Standard Life to a new provider to achieve better results at lower cost.
in view of the fact that my pot has just dropped by £15,000 would now be a good or a bad time to switch provider??

your thoughts please

thanks

DavidT67

It makes no difference.  If you have 1,000 shares in a Global tracker fund and you transfer those 1,000 shares in-specie to a new platform, you still have 1,000 shares in that fund.  How the value of those shares varies is irrelevant.

NB Why do you think changing providers will yield 'better results' ?

Sarahspangles

Were you planning to move your investments in cash or in specie - which is where the actual investment transfers. The latter is only available if the funds you hold are traded on the new platform.

The main difference between platforms is ongoing charges, you won’t necessarily get better ‘results’. To do that you need to choose different funds.

Albermarle

I was about to switch from Aberdeen Standard Life to a new provider to hopefully achieve better results 

The pension provider has no impact on results at all.
The investments you hold with the provider is the important part, so you could just as easily switch investments with your current provider.
In any case whatever you do, I have inserted a word in Italics into your statement.

By the way I do not think the brand 'Aberdeen Standard Life ' exists anymore. If it is a pension you deal with yourself ( not through an advisor) it is just 'Standard Life' 

dunstonh

prior to the recent “tariff troubles” I was about to switch from Aberdeen Standard Life to a new provider to achieve better results at lower cost.

Aberdeen Standard Life ceased to exist several years ago.   Both the Aberdeen SIPPs support in-specie transfer.  I believe the Standard Life SIPP will where you use UT/OEICs or direct assets but not if you use pension funds.

Moving from one SIPP to another SIPP will not give you better results.  SIPPs share the same investment options in most cases.   Unless you are not in a SIPP but a PPP or SHP (a lot of people misuse the SIPP name).

in view of the fact that my pot has just dropped by £15,000 would now be a good or a bad time to switch provider??

With an in-specie transfer, it wouldn't make any difference as you do not leave the market.

CrystalTipsbumbles

Thanks everyone for your responses and putting me right on a thing or two.
My pension plan is with Standard Life in a fund they call “pathway 1”
where there is no intention to access the fund for a minimum of 5 years.
i do not have the knowledge to choose my own investments and need to trust the fund managers to make good decisions.
Having read reviews in the “which” magazine companies such as Vanguard and A J Bell come out top and i was thinking of transferring to one of their managed funds and i think their fees are lower.
any further comments would be much appreciated
thank you

kempiejon

Taking control is commendable, there can be a lot to take in but investing regularly, starting early and sticking at it was key. If you want to move from Aberdeen Standard Life to a new provider to achieve better results at lower cost how will you pick a new provider? Who can tell you if their offer is better or can you deduce that for yourself? How much is the current plan costing and where is it invested and how does its performance compare to your potential new choices, do you know how to judge that?
I know not specifically of "pathway 1" I have glanced at AJbell and HLs offer but things of this ilk are not necessarily wildly different between providers.

Everyone's attitude will differ but I wanted to know what, where and why I was investing, it's my future lincome for life and route away from servitude. Good luck in your new choices.

Albermarle

Investment pathways are for people who have retired and mainly stopped contributing.
Due to general confusion in the public with regard to pensions, the government ( or some agency thereof) asked pension providers to offer four simple options for those not really wanting to choose their own investments.
So all providers who offer these pathways essentially have the same offering, with maybe just some small differences.

SL investment pathway 1 - is for customers who do not want to access their pension for 5 years. It is invested at a medium risk level with about 50% equities. Cost 1% minus discounts depending on fund size. 

HL investment pathway 1 - uses Blackrock Mymap 4 - a medium risk fund of about 50% equities . Total cost 0.59%

AJ Bell investment pathway 1 uses their own balanced fund, which has about 60% equities. Total cost 0.56%

The performance of the SL and HL funds is very similar.
The higher equity AJ bell fund has grown a bit more over the last 3 years, but has dropped a bit more in the last couple of weeks ( both due the higher equity %)

dunstonh

Thanks everyone for your responses and putting me right on a thing or two.
My pension plan is with Standard Life in a fund they call “pathway 1”

That doesn't sound like you have a SIPP as that pathway uses insured pension funds.     Some of the insurers offer their insurered funds in their SIPP product but in your case, the option of in-specie transfers will not be available as you are not using SIPP assets.

Having read reviews in the “which” magazine companies such as Vanguard and A J Bell come out top and i was thinking of transferring to one of their managed funds and i think their fees are lower.

Have you compared charges?  (platform, OCF, TC & IC vs Standards Life)

CrystalTipsbumbles

Thanks very much for your comments, i feel better placed now to make an informed decision