Transfer SIPP to different platform?

Parking_Trouble

The wife transferred her final salary pension to Standard Life several years ago, using an IFA. Other than responding to requests for flexible drawdown (once or twice a year) and making sure there is enough cash to pay his (and other) fees he doesn't appear to do much.

It's still in the same investments as day one. They seem to have done OK.

Value is around £360k.

Is it better for her to leave it and pays the fees, or move to a self managed SIPP and put it into balanced funds, or same as the SL ones (where possible)?

poseidon1

https://forums.moneysavingexpert.com/discussion/6684061/transfer-sipp-to-different-platform

Possibly better on costs assuming you are prepared to take on the role of:

1. Finding an appropriate Sipp
2. Help navigate the transfer of cash to the new provider
3. Choose appropriate investments to replace the SL ones
4. Help your wife with her annual flexible drawdown requests when necessary.

Measure your additional time, effort and expertise in engaging in the above matters against the level of fees being charged for the current arrangement at present.

dunstonh

The wife transferred her final salary pension to Standard Life several years ago, using an IFA. Other than responding to requests for flexible drawdown (once or twice a year) and making sure there is enough cash to pay his (and other) fees he doesn't appear to do much.

Handling drawdown requests takes an advisor about 4 to 5 hours. There will also be the ongoing suitability checks on the investments. A piece of advice that doesn’t change is still advice. The usual advice, audit trail, and documentation needs to be put in place.

Is it better for her to leave it and pays the fees, or move to a self managed SIPP and put it into balanced funds, or same as the SL ones (where possible)?

The standard life pension uses insured funds, which are not available on a SIPP.

If you think you can DIY the work and investments and are prepared to do so, then go for it.

DRS1

I am being ignorant here but the OP seems to be equating moving away from SL to another platform with ditching the IFA. Are the two connected in that way?

Surely there is an agreement with the IFA and if the OP's wife wants to terminate that then they need to do so in accordance with that agreement?

If they move from SL to eg HL but do nothing else then won't the IFA still be appointed and still be allowed to charge their fees?

If they do terminate the IFA's appointment then does that mean they need to leave SL? Is the set up one of those things where SL will only talk to an IFA? Or will SL talk direct to their customer - the OP's wife (not the OP).

dunstonh

If they move from SL to eg HL but do nothing else then won't the IFA still be appointed and still be allowed to charge their fees?

The IFA is appointed as the agent on the provider's plan. If the plan is zero, then the remuneration as a percentage of zero is zero. So, you are technically correct but in reality, unless you are paying your fees by standing order or direct debit, then the servicing will just end.

If they do terminate the IFA's appointment then does that mean they need to leave SL? 

No.

Is the set up one of those things where SL will only talk to an IFA? Or will SL talk direct to their customer - the OP's wife (not the OP).

I have very little experience with the functionality of Standard Life legacy plans from a consumer point of view. Standard Life doesn't have a platform. Aberdeen retained the platforms after selling Standard Life. With Phoenix buying Aegon, that may become their future platform.

Typically, using an intermediary provider for direct-to-consumer processing is less straightforward than using a direct-to-consumer provider.

DRS1

OK I had imagined that the OP's wife's agreement with the IFA would have continued in force for as long as the pension existed regardless of where the pension was housed (unless terminated in accordance with its terms).

If transferring the pension out of SL effectively defeats the agreement then that may get the OP's wife where she wants to be. I would still be inclined to give the IFA whatever notice is required to terminate the agreement with them though.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82144172#Comment_82144172

it is still very sensible to notify the IFA of the end of the servicing agreement. it belt and braces it and its also the polite thing to do as well as the contractually correct thing.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82144142#Comment_82144142

There is a fully functioning Standard Life retail platform ( no need for IFA ). It is not just legacy, you can today start a new personal pension with them if you want.

Although now owned by Phoenix, it is essentially unchanged from before.

I still have a pension pot with them, with a good discount from the basic price. Choice of investments in their standard pension is about 200 OEIC funds. The website is user friendly.

dunstonh

There is a fully functioning Standard Life retail platform ( no need for IFA ). It is not just legacy, you can today start a new personal pension with them if you want.

I don't really consider that a platform, personally. I remember it from years ago, and it always felt half‑hearted, with limited tax wrappers and limited functionality. More of a life‑office offering than a true whole‑market investment platform. For an inexperienced investor who doesn't know what they're doing, it may be an ideal option.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82144303#Comment_82144303

You are right that 'platform' was the wrong description.

What Standard Life offer is personal and workplace pensions, and numerous legacy plans I guess.

Since I last looked, under Phoenix they appear to have streamlined their offering ( no SIPP anymore), and reduced the number of funds available to about 50. Although I guess most of their customers go for the Ready made lifestyle options. Total charges seem to be around 0.5%, although for the older pensions they typically had a higher price but with a discount.

Phoenix seem to be using the SL brand to actively market to new customers ( not their usual style), so maybe Aegon will just become a legacy brand, especially when you read about their very clunky website/software.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82144947#Comment_82144947

I don't know; I'm just guessing but as Aegon has one of the largest amounts of assets under management on platforms, I can't imagine Phoenix would want to jeopardise that position. As you said, Phoenix is using the Standard Life brand for new business contracts. Assuming the Aegon platforms are moved to Phoenix, I wouldn't be surprised if Phoenix keeps them open for new business and rebrands them as Standard Life.

I wonder if the sale of Standard Life by Aberdeen restricts the use of the Standard Life brand on an investment platform for a period. After all, Aberdeen retained the Standard Life platforms, so I doubt they'd want a new, different Standard Life platform to appear so quickly. Then again, that is the company that rebranded without vowels thinking that was a good idea!

Phoenix does have a range of other historic brands under its control. It could revive those or it could go with something completely new. They won't be able to continue the Aegon name for long after the sale as its only the book that is being sold and not the brand.

It will be interesting to see what happens.