Want to move away from SJP

Spendless

A few years ago my husband and myself saw a financial advisor, we were aware that she wasn't an IFA but didn't fully understand that she was completely connected with SJP. We had some money we didn't know what to do with and she suggested moving some into cash ISAs that we found ourselves which is why we didn't realise (naivity on our part) and I had around 6 or 7 historic private/prev workplace pensions with varying amounts in. That I had no idea what I should do with them. The SJP FA collated them and put them into a SJP pension, initially telling me this was a SIPP though I'm now aware this wasn't ccorrect (I'd never heard the term SIPP before so I know what she said but it was verbal so I can't prove it). She also told us an amount to pay into the SJP pension. Earlier this year I realised the amount put in was too much, more than my earnings for the tax year as I'd been in and out of work. We contacted her and it got refunded to us. She said she had misunderstood a previous wage slip I'd supplied and had got the figures wrong (she has put this in writing). She still took the wrong amount out to refund us (too much) and had to pay some back in again. Initially she wanted to put the whole refund back into the pension and I said No because it was potentially larger than the amount I will earn this year which would result in another over payment.

So, I've lost confidence in her and her abilities. I've also heard a lot more about SJP and their charges and wish to go elsewhere. Currently I don't know where though or when/how to do it. My pension pot is not large. Now the overpayment has been taken out and refunded there's about £83K in there. I have previously heard (inc seeing it on the Martin Lewis show) that IFAs would only be interested in moving it if the pot was £100K+. I think I'm left with a situation where I either educate myself over the coming months so I can do this myself or I wait until the current SJP pension grows to £100k and then find an IFA.

I do have a £1300 pension in addition from a prev employer that I left last year which is with Royal London. As I'd actually forgotten about it, till a statement arrived recently, I am wondering if I should move that into somewhere and 'dummy run' with it to see how I get on before moving my SJP pot.

In addition we (me and husband) do have 2x S&S ISAs with SJP that I feel the same way about. I understand you can't actually see what I'm invested in with SJP (please correct me if I'm wrong) so can't just move over to another platform with a like for like investments.

I'm aware we will come into exit fee charges. The ISAs were opened March 24. My pension at the same time with a chunk of money being put in then and all my prev collated pensions went in in Sept 24.

Me and husband are 60/61 with an idea of retiring by the time he (61) is 65 and me possibly earlier.

Any thoughts and help appreciated.

Albermarle

It is actually pretty easy to open a new pension online and transfer other pensions into it, really no need for an IFA to do that. However when the money arrives in the new pension, you have to decide how to invest it. This can be a bit scary but there are plenty of simple cheap funds available nowadays, and most likely you only need one. If you do a bit of research - for example on the pension providers website - on these forums etc you will see it is not rocket science.

I'm aware we will come into exit fee charges. 

Yes one of the main drawbacks of being with SJP - they reduce with time so might be worth waiting before making any changes.

 do have a £1300 pension in addition from a prev employer that I left last year which is with Royal London. As I'd actually forgotten about it, till a statement arrived recently, I am wondering if I should move that into somewhere and 'dummy run' with it to see how I get on before moving my SJP pot

Royal London would not be a bad choice to actually move the SJP pot to ( not saying it would be the best but a solid provider) . However RL insist you take advice for some things, but not others, so you would have to check that. Otherwise you could stick to your initial plan.

 I have previously heard (inc seeing it on the Martin Lewis show) that IFAs would only be interested in moving it if the pot was £100K+.

It depends to some extent on how busy the IFA is, their location and their business model. One based in the City of London, may have a minimum of £250K or even more. One based in say Halifax and looking to grow their business, may only have a minimum of £50K. In any case if you add the pensions and ISAs together you are probably around £100K anyway.

dunstonh

The SJP FA collated them and put them into a SJP pension, initially telling me this was a SIPP though I'm now aware this wasn't ccorrect (I'd never heard the term SIPP before so I know what she said but it was verbal so I can't prove it).

Don't be too hooked up on the name "SIPP".

Many providers refer to their pension as a SIPP when it isn't a SIPP. And there is a bit of a trend at the moment where some platforms are beginning to distance themselves from the term SIPP and go back to personal pension. It's got a bit silly because, effectively, there have become subcategories of SIPP it's all a bit messy. However, in the scheme of things, it makes very little difference nowadays. It used to, in the past, as SIPP had lower solvency requirements and virtually no requirement to carry out any due diligence on assets it offered.

I have previously heard (inc seeing it on the Martin Lewis show) that IFAs would only be interested in moving it if the pot was £100K+.

That is incorrect.

IFAs operate many different models. Some will target high-net-worth clients, while others are general practitioners that do pretty much everything. It really depends on their business model and available capacity.

There are also different business models with IFAs in terms of how independent they are. The majority are still small, localised, independent IFA firms of one to five advisers working from home/home offices or away from the expensive city centre offices. These tend to have very little internet coverage and often don't appear on the directories that require payment. Then you have the large regional and national firms who are typically consolidator firms. These tend to buy up retiring IFAs and convert all the processes and recommendations to match their company standards. They also tend to dominate the directories. They tend to be less personalised and more interested in assets under management.They are the ones that often have higher minimums. Some of those consolidators act almost very similarly to SJP. Although usually lower cost.

In addition we (me and husband) do have 2x S&S ISAs with SJP that I feel the same way about. I understand you can't actually see what I'm invested in with SJP (please correct me if I'm wrong) so can't just move over to another platform with a like for like investments.

I know the SJP product range is old-fashioned, but I would think you can see things online. However, even if that is not the case, you can still transfer it. You would use a cash transfer instead of an in-specie transfer.

Exit charges are going to be an issue for you. However, I've typically found that ongoing charges are much lower too, and there is a break-even point. A short break-even point can mean that paying to get out is viable.

LHW99

OP - you say "Earlier this year I realised the amount put in was too much, more than
my earnings for the tax year as I'd been in and out of work."

Do you mean calendar year, or financial year? If this financial year, does that mean you still have an operational work pension?

If so, that could be a home for the RL and / or SJP pensions.

Spendless

https://forums.moneysavingexpert.com/discussion/comment/82125588#Comment_82125588

Earlier this calendar year, I realised that a historic payment into the SJP pension when it was first opened (March 24) had been more than my earnings were in the tax year 23 - 24. I hadnt earnt enough for the amount put it (inc the tax relief) due to being in and out of work that year.

I do have and pay into my current workplace pension but only started it in March this year. I work minimal hours in retail for NMW. I still joined it cos free money. I dont pay above the min taken out of my wages.

Spendless

Ok so current workplace pension is with legal and general. I have £1300 ish in Royal London and approx £83k in SJP.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82125690#Comment_82125690

Normally who the pension provider is of less importance than how the money is invested within the pensions.

Of course if the provider is expensive and locks you in that is a pain….

For info there is another SJP thread running.

SJP exit fee guidance - 6 year rule query — MoneySavingExpert Forum

Interestingly my SIL uses them and sings their praises. I think the advisor she has is very professional, friendly and remembers her birthday. At least she gets something in return for the high charges.

Scrounger

Some platforms offer to pay towards exit fees for pension transfers - eg Fidelity:

https://www.fidelity.co.uk/transfer/pension/

Platform charges are capped at just £90/pa for ETF's.

Scrounger

Spendless

https://forums.moneysavingexpert.com/discussion/comment/82126029#Comment_82126029

Thank you. I think this confirms that I need to educate myself more as Ive no idea whether that is good, bad or indifferent to current charges, what another platform might charge or how it works out if taking into account some exit fees being paid towards.

We (me and husband) have now been able to see where the money is invested, previously we could only see it saying Polaris 3. Its invested in many different places, but we looked online and got a couple of suggestions of other similar funds. I went thru my paperwork. My half a dozen prev pensions none of them had exit fees regardless of how long Id had them and now theyre in something that does! (Hey ho, you live and learn). Exit fees are 5.1% reducing by 1% each year. That means even in yr6 you'll get charged 0.1%. I forgot to say we have never added to any of them, with the exception of SJP FA having to put in the surplus she was refunding me by accident.

I think my next straregy is to learn as much as possible so I know which platform and investments I want to have with a view to leaving after the next anniversary.

bjorn_toby_wilde

There’s a good comparison table for platforms here https://monevator.com/compare-uk-cheapest-online-brokers/

Some platforms charge a flat AMC and others a percentage. For smaller pots a percentage fee is usually better. There’s a break even point where a flat fee becomes cheaper.

You’ll also pay an annual percentage fee on the fund you invest in. These are higher for actively managed funds than passive.

The only other fee which might affect you is the trading fee which you pay every time you buy and sell. If that’s only a couple of times a year then it may not bother you.

trouty00

Don't have much to add here but I just did this after about 15 years with SJP via a work scheme, set uo a new SIPP with fidelity and filled in the transfer request and it appeared in the fidelity account much quicker than i expected - was all done in 8 days so i wasnt out the market for too long. You have to remember the SJP assets will be sold and then they will transfer cash, which then i had to reinvest in a fund of my choice.

I was surprised actually with the fact that no-one called me from SJP to ask if it was really me although I had give them a heads up that i was goign to do it.

of course with SJP you might lose a bit of the fund due to the way they do their fees so have to weigh that up but in my circumstances i took the hit as i belived was better for me,