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SIPP - Transferring into
jmartinscotland
Posts: 5 Forumite
Hello
My husband and I are looking to transfer our Personnal Pensions into a SIPP.
We are doing this for a number or reasons:
1. My husband who is 46 has just "retired" from local council so his pension is currently frozen in the council's superannuation scheme. Value of pension is £160,000. He is currently being "creative" and not making any contributions.
2. My pension (I am 43) is currently in 2 x Lincoln Policies and 1 x Abbey totaling £28000
3. I run a number of Childrens Nurseries and we are looking to expand. One method to utlilize the funds that are currently frozen is to use these funds to purchase another nursery property and the business to rent it from the pension fund.
We have taken advice and feel this is a good use of the current pension and allows the pension to grow in a tax efficient manner.
My question is that I keep getting conflicting advice with regard to the cost of transferring and managing the sipp. They range from a one-off fee to a yearly commission, from us having to pay the transfer fee out of our own pockets to it being paid by the fund etc etc etc
The fee to transfer seems to be around 3% of the fund value- that would be a fee of around £5600 - how difficult can transferring funds be? What is involved in transferring into a sipp that would command such a high cost?
Any help and advice would be appreciated.
Jennifer
My husband and I are looking to transfer our Personnal Pensions into a SIPP.
We are doing this for a number or reasons:
1. My husband who is 46 has just "retired" from local council so his pension is currently frozen in the council's superannuation scheme. Value of pension is £160,000. He is currently being "creative" and not making any contributions.
2. My pension (I am 43) is currently in 2 x Lincoln Policies and 1 x Abbey totaling £28000
3. I run a number of Childrens Nurseries and we are looking to expand. One method to utlilize the funds that are currently frozen is to use these funds to purchase another nursery property and the business to rent it from the pension fund.
We have taken advice and feel this is a good use of the current pension and allows the pension to grow in a tax efficient manner.
My question is that I keep getting conflicting advice with regard to the cost of transferring and managing the sipp. They range from a one-off fee to a yearly commission, from us having to pay the transfer fee out of our own pockets to it being paid by the fund etc etc etc
The fee to transfer seems to be around 3% of the fund value- that would be a fee of around £5600 - how difficult can transferring funds be? What is involved in transferring into a sipp that would command such a high cost?
Any help and advice would be appreciated.
Jennifer
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