Pru to ii

Duggo

So I’m 54 and will be accessing pensions in a couple of years. I have 3 small pensions, and am considering moving one with prudential to ii.  The value is just short of £20k.  My reasoning is that prudential don’t seem to offer drawdown.  I should save on fees as I’m paying roughly £8.50 a month to pru and ii is £5.99 a month.  I thought the vanguard lifestyle strategy 60% equity seemed a good middle of the road option

If all goes well I have another pension of £25k I could move later, which seems sensible as the fees would still be £5.99 a month. 

Does this sound a reasonable option? 

Thanks for reading.

dunstonh

My reasoning is that prudential don’t seem to offer drawdown. 

They do but not on their old products.   However, that is only important as a reason if you are looking to take benefits in the next 12 months.  

 I should save on fees as I’m paying roughly £8.50 a month to pru and ii is £5.99 a month.  I thought the vanguard lifestyle strategy 60% equity seemed a good middle of the road option

If your Pru plan is a Pru original (not one acquired by Pru from another company) and dates back to the early 2000s or earlier, then you are likely to receive a smoothed return that is quite favourable.    You never see the volatility with those.      You are now looking at an option where volatility will be very visible.  Can you handle that? - many cannot.   many can.

LHW99

Depending on what you plan for this pension, eg if taking the 25% tax free once transferred, you could find HL is a little cheaper at 0.45%?

Duggo

Thanks for that. It’s a group stakeholder pension from 2003 to 2006, currently invested almost 50/50 in pru dynamic growth II and IV. 
I’ve checked and there’s no drawdown option, so I guess I’ll need to move it at some point.

xylophone

 Consider moving the pension to HL and ask to split into two small pots? You might keep in cash (no fee) then access from age 55?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/taking-your-whole-pension-in-one-go

dunstonh

Thanks for that. It’s a group stakeholder pension from 2003 to 2006, currently invested almost 50/50 in pru dynamic growth II and IV. 

That confirms it's not one of the plans that I was referring to. So, you can disregard the references to smoothed returns

Albermarle

LHW99 said:

Depending on what you plan for this pension, eg if taking the 25% tax free once transferred, you could find HL is a little cheaper at 0.45%?

Or Fidelity at 0.35%
Or AJ bell at 0.25%

OP - II is usually more suitable for people with larger funds, as it has a fixed monthly fee rather than charging a % of the funds.

Duggo

Thanks for all the feedback