Pension transfer, Aviva to AJ Bell sipp

stulaunch

I've just recieved my annual statement from Aviva, and I'm paying 1% charges on a £30k pot, so it was just under £300 in charges blast year.

I'm surely better transfering it into my sipp, with AJ Bell, which looks like it's 0.5% charges.

Am I missing anything? I've never transfered a pension before.

Ty

Marcon

which looks like it's 0.5% charges.

'looks like' sounds a little tentative. Are you comparing similar funds? Charges aren't necessarily the same for each fund you hold within your pension.

stulaunch

https://forums.moneysavingexpert.com/discussion/comment/82140330#Comment_82140330

Yealy statement on AJ Bell says £153 charges on £70k. All invested in HSBC GS Balanced

dunstonh

I've just recieved my annual statement from Aviva, and I'm paying 1% charges on a £30k pot, so it was just under £300 in charges blast year.

Do you receive fund-based discounts? Because of a quirk in how charge disclosures are made, fund‑based discounts are often omitted. For example, if you're charged 1% and receive a 0.2% rebate, the charges disclosure will still show 1%.

Am I missing anything? I've never transfered a pension before.

Does the Aviva pension include safeguarded benefits?

I'm surely better transfering it into my sipp, with AJ Bell, which looks like it's 0.5% charges.

0.5% is at the higher end nowadays for a fund like HSBC Global Strategy Balanced. That fund is 0.19%. If you're paying 0.5%, it suggests your platform charges 0.31%. That's not very cost-effective. It's not a disaster, but there are cheaper. I didn't think AJ Bell's charges were that high. Maybe it's a misunderstanding on your part?

DRS1

When I looked earlier this evening the AJBell account charges for a SIPP were 0.25% up to £250k and 0.1% on the next £250k.

Oh and isn't £153 on £70k more like 0.21%?

mrklaw

or I think £120 a year fixed if you have only ETFs

stulaunch

Yes, sorry. Don't know where I saw the 0.5% A J Bell charges. I think I just asked on Google & misread it.

There is a small rebate on Aviva. Looks like either 0.1 or 0.15%.

The Aviva pension doesn't have any safeguarded benefits.

These thing considered, would I be doing the right thing by transfering?

Albermarle

Aj Bell platform fee is 0.25%.

Fund fee for HSBC balanced is 0.19% .

So total is 0.44%

£1.50 for each fund purchase.

AJ Bell have a more restricted app only offering - DODL.

Platform fee is 0.15%- not sure if they offer HSBC balanced though.

QrizB

AJ Bell have a more restricted app only offering - DODL. Platform fee is 0.15%- not sure if they offer HSBC balanced though.

I've got an account with Dodl and no, there don't offer HSBC GS Balanced.

The closest funds I can see are Vanguard LifeStrategy in VLS 40 / 60 / 80 flavours.

mrklaw

right now you have 30k. presumably you’re either contributing to it or hoping it grows. so it’ll be more than 30k in future.

if Aviva charges 1% thats £300 now. if your pot doubles its £600 (still 1%)

if you move it to a flat rate ETF only provider like AJ Bell - then you’re paying £120 a year which on a 30k pot is 120/30000=0.004 0.4%. if that doubles to 60k then its effectively 0.2%. Both cheaper than the 1% from Aviva

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82142066#Comment_82142066

The OP is invested in an OEIC fund, costing 0.19% so as already detailed, AJ Bell cost would be 0.44% in total.