Aviva and TFLS

xylophone

Getting the State pension in March is probably going to be the defining point in my decision making

Have you  already claimed your state pension and know what you will be receiving?

sgx2000

xylophone said:

Getting the State pension in March is probably going to be the defining point in my decision making

Have you  already claimed your state pension and know what you will be receiving?

xylophone said:

Getting the State pension in March is probably going to be the defining point in my decision making

Have you  already claimed your state pension and know what you will be receiving?

Yes.  Full state pension

sgx2000

Sea_Shell said:

What is your plan for your TFLS?*

Are you going to spend it?

Or save it?   Or invest it?

If you're going to reinvest most of it, then a crash doesn't matter as much as if you needed £x to buy something specific, or pay off debt.



ETA * Up thread it sounds like you're just trying to time the market 

TFLS Is going to be £37.5k...

Just into holding account now.
Then April £20K added to ISA
The remaining cash will be added to my cash buffer and used over the next 6 years.

I already have a db pension in payment that is CPI linked  and with the state pension almost covers all my living expenses plus a couple of holidays a year.

The remaining DC pension will either stay where it is and accrue or (probably) I may transfer the whole dc pension to a SIPP then do the TFLS, the remainder again will sit there accruing until My cash buffer drops to approx £20k

Cobbler_tone

QrizB said:

Cobbler_tone said:

2026 is predicted to be a strong year from everything I’ve read. As for a ‘crash’, a stopped clock is right twice a day.

We're obviously reading different things!

For every article talking about a crash, there is another one saying there'll be steady growth. I'd be very surprised if there weren't similar articles doing the rounds last year. Imagine the growth you would have lost if you'd bailed out then. One big element of steady (or aggressive) growth is holding your nerve, although appreciate everyone has there own unique needs and situation.
Good buffer for the start of the year and always sensible to have a healthy cash buffer.

cfw1994

sgx2000 said:

Sea_Shell said:

sgx2000 said:

cfw1994 said:

That’s what my relative found….& because they might want a regular payment in future, they moved it to an Aviva SIPP & then took their 25% 👍

Similar funds available, although not precisely the same, so it had to be sold down, moved as cash, then re-invested.  Aviva did that for them fairly rapidly.
Always a ‘risk’ being out of the markets, but given the pot had grown so well over previous couple of years, they weren’t too concerned 🤷‍♂️

sgx2000 said:

QrizB said:

Cobbler_tone said:

2026 is predicted to be a strong year from everything I’ve read. As for a ‘crash’, a stopped clock is right twice a day.

We're obviously reading different things!

Me too............

Me three!
A big chunk we have managed 22% last year….not expecting the same this year!
But….the world is a funny place, who knows 🤷‍♂️

The prospect of them converting to cash just as the market crashes is what wories me...

But just think of all the cheap units you'd then buy back.

If you're going to stay invested, is the risk not the other way round?!?    A price surge whilst uninvested?

I was thinking..
What if I agree with Aviva that they sell my workplace pension for cash then transfer to a SIPP.
They say it will take several weeks.
The market crashes 50% the day before they sell for cash
I finish up 50% down on my expected TFLS....

My Dad once told me “if you’re worried about something that you can do something about, then do it…..if you can’t do anything, then don’t worry about it”.

Timing the market is a fairly hopeless task.  

I’m not saying it shouldn’t be something of a concern, but you can’t do much about it.  

If markets fell and you’d left your funds as they are, they too would be down 50% in your scenario. If that is a big worry to you: sell down to cash immediately 🤷‍♂️
(for clarity, I don’t feel you should do that!)

Cobbler_tone

cfw1994 said:

sgx2000 said:

Sea_Shell said:

sgx2000 said:

cfw1994 said:

That’s what my relative found….& because they might want a regular payment in future, they moved it to an Aviva SIPP & then took their 25% 👍

Similar funds available, although not precisely the same, so it had to be sold down, moved as cash, then re-invested.  Aviva did that for them fairly rapidly.
Always a ‘risk’ being out of the markets, but given the pot had grown so well over previous couple of years, they weren’t too concerned 🤷‍♂️

sgx2000 said:

QrizB said:

Cobbler_tone said:

2026 is predicted to be a strong year from everything I’ve read. As for a ‘crash’, a stopped clock is right twice a day.

We're obviously reading different things!

Me too............

Me three!
A big chunk we have managed 22% last year….not expecting the same this year!
But….the world is a funny place, who knows 🤷‍♂️

The prospect of them converting to cash just as the market crashes is what wories me...

But just think of all the cheap units you'd then buy back.

If you're going to stay invested, is the risk not the other way round?!?    A price surge whilst uninvested?

I was thinking..
What if I agree with Aviva that they sell my workplace pension for cash then transfer to a SIPP.
They say it will take several weeks.
The market crashes 50% the day before they sell for cash
I finish up 50% down on my expected TFLS....

My Dad once told me “if you’re worried about something that you can do something about, then do it…..if you can’t do anything, then don’t worry about it”.

He's a wise man, that's my mantra and it'll serve you well through life. Saves a lot of wasted energy, frustration and worry.

Albermarle

Cobbler_tone said:

cfw1994 said:

sgx2000 said:

Sea_Shell said:

sgx2000 said:

cfw1994 said:

That’s what my relative found….& because they might want a regular payment in future, they moved it to an Aviva SIPP & then took their 25% 👍

Similar funds available, although not precisely the same, so it had to be sold down, moved as cash, then re-invested.  Aviva did that for them fairly rapidly.
Always a ‘risk’ being out of the markets, but given the pot had grown so well over previous couple of years, they weren’t too concerned 🤷‍♂️

sgx2000 said:

QrizB said:

Cobbler_tone said:

2026 is predicted to be a strong year from everything I’ve read. As for a ‘crash’, a stopped clock is right twice a day.

We're obviously reading different things!

Me too............

Me three!
A big chunk we have managed 22% last year….not expecting the same this year!
But….the world is a funny place, who knows 🤷‍♂️

The prospect of them converting to cash just as the market crashes is what wories me...

But just think of all the cheap units you'd then buy back.

If you're going to stay invested, is the risk not the other way round?!?    A price surge whilst uninvested?

I was thinking..
What if I agree with Aviva that they sell my workplace pension for cash then transfer to a SIPP.
They say it will take several weeks.
The market crashes 50% the day before they sell for cash
I finish up 50% down on my expected TFLS....

My Dad once told me “if you’re worried about something that you can do something about, then do it…..if you can’t do anything, then don’t worry about it”.

He's a wise man, that's my mantra and it'll serve you well through life. Saves a lot of wasted energy, frustration and worry.

Also with investing there is another old Northern saying that can be useful   ' If in doubt, do nowt' 

sgx2000

Going to move the £150k pot to a sipp.   Just seen the fees for Aviva default funds... Wow... £1005 for the first year...  Although I am probably going to be looking at a self managed low/ medium fund with lower fees

Albermarle

sgx2000 said:

Going to move the £150k pot to a sipp.   Just seen the fees for Aviva default funds... Wow... £1005 for the first year...  Although I am probably going to be looking at a self managed low/ medium fund with lower fees

I think Aviva do not have a separate platform charge, so you are effectively paying 0.67% all in.
The biggest SIPP provider is HL. If you had a low cost medium risk multi asset fund with them, the cost of the fund and their platform fee, would be around 0.67 %..... If you pick one of their managed funds it would be a lot more.
Luckily there are cheaper SIPP providers, but you have to be careful still to keep the costs down.

dunstonh

Albermarle said:

sgx2000 said:

Going to move the £150k pot to a sipp.   Just seen the fees for Aviva default funds... Wow... £1005 for the first year...  Although I am probably going to be looking at a self managed low/ medium fund with lower fees

I think Aviva do not have a separate platform charge, so you are effectively paying 0.67% all in.
The biggest SIPP provider is HL. If you had a low cost medium risk multi asset fund with them, the cost of the fund and their platform fee, would be around 0.67 %..... If you pick one of their managed funds it would be a lot more.
Luckily there are cheaper SIPP providers, but you have to be careful still to keep the costs down.

Plus, Aviva will include transaction charges in their charges disclosure.    Whereas the likes of HL and many other platforms disregard that column (although they do disclose it post sale in the annual cost and charges disclosure)

So, it's important to compare like for like.