Moving SIPP from Aegon to II but rate already good I think

spoovy

I've not been impressed with Aegon's online platform or customer service particularly, and I've read a few bad reviews about problems when retirement time comes, so I've been thinking of moving it all to Interactive Investor.  Pot is currently about 250k, split across various funds.

I do have quite a good platform rate though at Aegon I think -- 0.15% (good negotiating by my old employer I assume) -- but that still means I'm paying about £30 pcm at the moment, which is more than I'd pay at II as I understand it which would be a flat fee of £12.99 pcm.  The difference will only grow in future as I add more to the pot as well, and I still have about 15 years until retirement most likely.
Is my logic right here? Seems simple but pensions is a bit of a black hole knowledge-wise for me I'm concerned I'm overlooking something.

Also if I shift across to II will my money stay in the same funds, or will I have to pick a bunch of new ones and decide on proportion split etc?  Ta.

dunstonh

I've not been impressed with Aegon's online platform or customer service particularly, and I've read a few bad reviews about problems when retirement time comes, 

You need to be careful when reading online stuff as its rare for consumers to mention which Aegon they are referring to.  Aegon operates multiple platforms and divisions.   They also have a large range of legacy plans, such as section 226 RACs and section 32 buy out bonds and hybrid schemes.

If what you read hasn't specified what the issue was, then you largely have to take it with a pinch of salt.  e.g. if it was an ex Scottish Equitable plan with GARs or GMPs. then its always going to be limited or have a bit more work involved if the person was trying to access the pension flexibly
.

Also if I shift across to II will my money stay in the same funds, or will I have to pick a bunch of new ones and decide on proportion split etc?  Ta.

Two of the Aegon platforms offer in-specie transfers if you are using OEICs or UTs.   If you are using insured funds, then in-specie is not available and you will need to select your own funds on II.

Remember that many Aegon contracts show the total charge including fund charge.    Whereas II will be split as platform charge PLUS fund charge.   You will also need to include Transaction Charges (TC) on your fund selection on the SIPP and not just the OCF or TER.   Aegon normally quote TC inclusive.    Most people generally ignore TC but when comparing, its important to compare like for like.

I suspect it's unlikely that you are on either of the two Aegon platforms, and it's more likely you are on the auto-enrolment scheme, a legacy Scottish Equitable plan or RetireReady.   None of those supports in-specie transfers as they use own-branded insured funds.

spoovy

Thanks for the reply.  This is one of the things I don't like about Aegon -- they seem to have so many different platforms/divisions and I'm never sure which one I belong to or should be logging into; it seems to change periodically too.  I was definitely using RetireReady at one point I remember the wording on the website, but the website I'm now logging onto doesn't use that term any more.  I think I changed it to a SIPP at some point, maybe that's one reason -- it appears to be Aegon Retirement Choices/"ARC" now, this term is used on the website I'm logged into.   I do have money in funds from different vendor(?)s -- Vanguard, Schroder etc as well as some Aegon funds.

Albermarle

Regarding the charges.
Some  pension providers have a platform charge, which is basically a charge for administering the pension.
Then the investment funds you have in the pension have a separate charge.
The platform charge will be visibly taken from your pension each month. However the investment funds pay themselves internally.
Some other pensions just have one charge that covers both, sometimes with a discount as well.

I suspect with Aegon that the 0.15% charge ( being very low) is only the platform charge.

II's fee of £12.99 a month is only the platform charge. Investment fund charges will be on top of that and can be anything from 0.1% to 2% depending on what you pick.

Lothian5

Hello, one thing to point out here is the cost of "dealing" such as switching funds within your pension.  Aegon ARC don't charge a fee but II charge £3.99 to sell and but each time, on top of their monthly fee. I know it is only £4 per transaction but would soon add up if you change you investments often.

LHW99

Lothian5 said:

Hello, one thing to point out here is the cost of "dealing" such as switching funds within your pension.  Aegon ARC don't charge a fee but II charge £3.99 to sell and but each time, on top of their monthly fee. I know it is only £4 per transaction but would soon add up if you change you investments often.

Although if you have both an ISA and a SIPP with II there is one trading credit per month, so if you don't trade that often you don't pay anything.

EdSwippet

Albermarle said:

I suspect with Aegon that the 0.15% charge ( being very low) is only the platform charge.

Maybe, or maybe not. My own Aviva ex-employer pension is 0.14% all-inclusive. Provided, that is, that I stick to Aviva's rebadged BlackRock trackers (which I have no problem doing). In other words, read the Aegon docs carefully to know what you may be jumping from, as well as what you're jumping into.

MallyGirl

LHW99 said:

Lothian5 said:

Hello, one thing to point out here is the cost of "dealing" such as switching funds within your pension.  Aegon ARC don't charge a fee but II charge £3.99 to sell and but each time, on top of their monthly fee. I know it is only £4 per transaction but would soon add up if you change you investments often.

Although if you have both an ISA and a SIPP with II there is one trading credit per month, so if you don't trade that often you don't pay anything.

plus there is no charge with II for regular investing (which you can change as often as you like)

spoovy

EdSwippet said:

Albermarle said:

I suspect with Aegon that the 0.15% charge ( being very low) is only the platform charge.

Maybe, or maybe not. My own Aviva ex-employer pension is 0.14% all-inclusive. Provided, that is, that I stick to Aviva's rebadged BlackRock trackers (which I have no problem doing). In other words, read the Aegon docs carefully to know what you may be jumping from, as well as what you're jumping into.

My rate is actually 0.11% (It must've reduced as I put more money in) and that's for platform only.