Old Pension move advice

mattygmbb

Hi all,

Just after some quick advice as to what to do with an old work pension.  The company i worked for was looked after by Kier over a 3 year period who we paid a pension with into an Aegon account currently sat in a fund called: Aegon BlackRock LifePath Flexi 2046-2048 (BLK).  It only has about 6k in it but i am unable to add to it anymore so just wondered if it was worth moving it into a SIPP somewhere that i can continue to add to going forward or best left where it is?

Thanks

MallyGirl

do you have a company pension you are contributing to?

Marcon

(Removed by Forum Team)

OP, you need to look at things like charges and fund performance. Combining pensions so you have them all in one place might feel neat and tidy, but it isn't necessarily advantageous. There's nothing to stop you opening a SIPP (or non-SIPP personal pension, which if you don't know much about investing, is likely to be a better idea) and building up benefits in that if you aren't currently in a workplace pension. 

mattygmbb

Thanks for the support there @Marcon, extreme novice and have no idea hence the initial question as unsure what would be needed for best advice.  I work for the NHS so im in their pension.  The trust i work for went private for a few years but then moved back under the NHS contract. Reson i initially asked is that i have a stock and shares ISA with AJ Bell and i received a message about opening a SIPP and with me not have much knowledge on this just wondered if beneficial to move this old pension into their SIPP.  Ill have a look into charges etc but wouldnt know here to start re what Fund to have it in.  Thanks again all.

LHW99

Money helper has a number of guides that may be useful

https://www.moneyhelper.org.uk/en/pensions-and-retirement

And if you are over 50 you can get a pensionwise appointment for free guidance (not advice) talking through types of pension and other things you might find helpful if you are a novice.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

DRS1

Aegon BlackRock LifePath Flexi 2046-2048 (BLK) Pn H Fund factsheet | Trustnet

According to Trustnet the AMC is 0.31%.  Doesn't seem bad to me but what do I know.
Your annual statements should say what charges you pay in a year and you could see if there is anything on top of the AMC.  I am guessing there will be.
You can then compare that with what AJBell would charge (remembering that whatever you invest in with AJBell will have its own AMC).

You say you would not know where to start with pension investing but if you have an S&S ISA then you must have made some investment decisions already.  Would the same investments serve you equally well in the SIPP?

The Blackrock LifePath thing is one of those investments which automatically switch you out of shares into bonds as you get older.  You might want to think if that is something you want.  Plenty of people on here would think you may be better off with a world equity tracker especially if it had an AMC of less than 0.31%.  And what are you going to do with this pension when you retire?  If you have an NHS pension then it is unlikely you will use this one to buy an annuity - more likely for top ups or bridging gaps between employment and the start of the NHS or State pensions.  How you want to use it may govern if you move out of equities at all or, if you do, when you do it.

MallyGirl

With a SIPP you would need to make some sort of investment choice but a little bit of reading on here could get you info on the common multi asset funds mentioned. Any of them would be a decent choice for the starting balance you have. As you learn more - if interested.
If you are in the NHS pension then I believe you can make AVCs but there can be advantages in having another pension separate from the NHS one.

Roger175

Given the relatively modest amount invested and the total lack of flexibility, I would look to transfer to a SIPP and the AJBell one you mention happens to be the one I use and am generally very happy with the service. Even if the fees on the existing are very low, it's not going to make a huge difference on this value.
Last year, I transferred 2 of my previous pensions across to AJBell in order to have everything in one place and it makes life so much simpler. I don't think AJBell do the exact same fund so if you did transfer, it would need to be in cash rather than an in specie transfer, so you would then have to make a decision on where to invest the money once inside the SIPP. 

mattygmbb

Thanks for all the comments everyone.  Got some thinking to do, thanks for all the advice.

Albermarle

mattygmbb said:

Thanks for all the comments everyone.  Got some thinking to do, thanks for all the advice.

As mentioned, what are known as 'low cost multi asset funds' are a popular choice.
They are mainly a mix of equity ( shares) and bonds/gilts.
The theory is that long term equities give growth but can be volatile short term.
Bonds/gilts are slower growing but are less volatile.
 Normally there is range offered at different % of each. Once you have chosen then nothing else to do. ( best to avoid the very cautious funds)

AJ Bell have their own low cost multi asset funds. 
AJ Bell funds | AJ Bell

Or these are also popular and can be bought on the AJ Bell platform

HSBC Global Strategy Portfolios - HSBC Asset Management UK