A few small pensions

SwitchWitch

Hi

My husband has a few small pensions from previous employment. He also has a current workplace pension with L&G and a SIPP with HL.

Can I move the small pensions without loosing the option to cash them in at 55? (With a view to investing more in the SIPP). 

On the L&G platform he has
Asda Diversified Growth Bond 9k
L&G PMC cash3 4k
L&G PMC 2035-2040 Fund 3k

On the Aviva platform is
New Generation Group Personal 6k

Is there anything else I should think about?

Thank you in advance.

QrizB

How old is your husband now?

eastcorkram

QrizB said:

How old is your husband now?

I can't help reading that as in, why can't he move his own pensions, rather than getting someone else to do it

Dazed_and_C0nfused

eastcorkram said:

QrizB said:

How old is your husband now?

I can't help reading that as in, why can't he move his own pensions, rather than getting someone else to do it

You could be right but I suspect it was more aimed at the change from 55 to 57.

QrizB

eastcorkram said:

QrizB said:

How old is your husband now?

I can't help reading that as in, why can't he move his own pensions, rather than getting someone else to do it

I can see the humour 😄 but D&C has grasped the reason!

SwitchWitch

QrizB said:

eastcorkram said:

QrizB said:

How old is your husband now?

I can't help reading that as in, why can't he move his own pensions, rather than getting someone else to do it

I can see the humour 😄 but D&C has grasped the reason!

Ha! 55 in Dec 2027 😬😀

QrizB

SwitchWitch said:

55 in Dec 2027 😬😀QrizB said:

eastcorkram said:

QrizB said:

How old is your husband now?

I can't help reading that as in, why can't he move his own pensions, rather than getting someone else to do it

I can see the humour 😄 but D&C has grasped the reason!

Ha! 55 in Dec 2027 😬😀

Does he have a "protected pension age" in any of his current schemes? Or an "unqualified right" to take them at age 55? If not, he can move and/or consolidate them without risking the loss of such protections or rights.

https://commonslibrary.parliament.uk/research-briefings/sn05847/

SwitchWitch

QrizB said:

SwitchWitch said:

55 in Dec 2027 😬😀QrizB said:

eastcorkram said:

QrizB said:

How old is your husband now?

I can't help reading that as in, why can't he move his own pensions, rather than getting someone else to do it

I can see the humour 😄 but D&C has grasped the reason!

Ha! 55 in Dec 2027 😬😀

Does he have a "protected pension age" in any of his current schemes? Or an "unqualified right" to take them at age 55? If not, he can move and/or consolidate them without risking the loss of such protections 

They all state 55 years. I don't know if there's an 'unqualified right' . When the paperwork came through with 65/67 on we always changed it to 55 in case it tied him in.

Is an 'unqualified right' something I should ask the hosting platforms about?

Marcon

SwitchWitch said:

Hi

My husband has a few small pensions from previous employment. He also has a current workplace pension with L&G and a SIPP with HL.

Can I move the small pensions without loosing the option to cash them in at 55? (With a view to investing more in the SIPP). 

On the L&G platform he has
Asda Diversified Growth Bond 9k
L&G PMC cash3 4k
L&G PMC 2035-2040 Fund 3k

On the Aviva platform is
New Generation Group Personal 6k

Is there anything else I should think about?

Thank you in advance.

Maybe think about the wisdom of cashing in pensions at age 55, when they are intended to provide for 'old age'? If he's still working, it will add to his tax bill and also rob his retirement years, unless he has very substantial pensions savings elsewhere.

Are the charges on his SIPP lower than the charges on these 'older' pensions?

There may be merit in keeping the Aviva pension. It is likely to be under £10K by the time he hits age 55, and he could then take the lot under the 'small pots' rule (assuming that option is offered in his particular contract with Aviva), meaning that he wouldn't trigger the Money Purchase Annual Allowance, which would restrict future contributions to a DC scheme to £10K a year including employer contributions, and tax relief on his personal contributions.

dunstonh

Can I move the small pensions without loosing the option to cash them in at 55? (With a view to investing more in the SIPP). 

If he has a protected retirement age and the receiving scheme will accept the transfer of the protected retirement age, then yes he can.     Not all ceding or receiving schemes have a protected retirement age.   So, its something you would need to verify.

Remember that just because they can be accessed at 55 doesnt mean it is sensible to do so.

Is an 'unqualified right' something I should ask the hosting platforms about?

Both ceding and receiving schemes should be asked.

On the L&G platform he has
Asda Diversified Growth Bond 9k
L&G PMC cash3 4k
L&G PMC 2035-2040 Fund 3k

L&G don't have a platform.  So, this will likely be an auto-enrolment scheme or group scheme.
L&G can be a right pain when transferring to a SIPP.   They have a tiny green list and you need to be on guard with the investments you select.  Often it's worth picking non-ETF/IT/Shares and then switching funds once it is with the receiving scheme.  Otherwise they are one of the most awkward to transfer away from.

SwitchWitch

Marcon said:

SwitchWitch said:

Hi

My husband has a few small pensions from previous employment. He also has a current workplace pension with L&G and a SIPP with HL.

Can I move the small pensions without loosing the option to cash them in at 55? (With a view to investing more in the SIPP). 

On the L&G platform he has
Asda Diversified Growth Bond 9k
L&G PMC cash3 4k
L&G PMC 2035-2040 Fund 3k

On the Aviva platform is
New Generation Group Personal 6k

Is there anything else I should think about?

Thank you in advance.

Maybe think about the wisdom of cashing in pensions at age 55, when they are intended to provide for 'old age'? If he's still working, it will add to his tax bill and also rob his retirement years, unless he has very substantial pensions savings elsewhere.

Are the charges on his SIPP lower than the charges on these 'older' pensions?

There may be merit in keeping the Aviva pension. It is likely to be under £10K by the time he hits age 55, and he could then take the lot under the 'small pots' rule (assuming that option is offered in his particular contract with Aviva), meaning that he wouldn't trigger the Money Purchase Annual Allowance, which would restrict future contributions to a DC scheme to £10K a year including employer contributions, and tax relief on his personal contributions.

Point taken. I was thinking we could re-invest but actually it would only be the 25% everything else will be taxed unless it comes under the 'small pot' rule. Have I read it's possible to split a large SIPP into smaller amounts so not to trigger MPAA?

The fees are
0.38% for Aviva
0.5% on the Asda pension
0.3% on the Sainsburys pension
0.22% on the Vanguard SIPP

Thank you for the questions they made me go back and check for specific figures.