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With profits or sipp

At present i am paying into £78 a month into a with profits scheme managed by Liverpool Victoria, it is the old Royal National Pension Fund for Nurses scheme. The transfer value is around £15,000. Wpuld i be better off transfering to a SIPP, and if so, any recomendations. I am 53 years old.

Comments

  • dunstonh
    dunstonh Posts: 121,231 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Wpuld i be better off transfering to a SIPP
    Why SIPP? If you cannot tell the difference yourself between the with profits pension and the SIPP then almost certainly the SIPP is not the right option.

    Its a bit like saying I need a new vehicle to get me to work. Shall I buy a bike or a 747?

    Is the LV pension a section 226 retirement annuity contract or personal pension? Is there guaranteed annuity rates? How are the charges? What is the critical yield required to beat the LV pension?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Almost certainly the pension will have a GAR which may be valuable - if so find out what percentage it is - anything above around 8% is worth keeping.
    Trying to keep it simple...;)
  • Contacted LV and suspect that due to the guarenteed annuity values, low charges, and relatively small amounts involved, i'm better off staying put. Thanks for your advice.
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