Scottish Widows pension question

mlmoneysaver

I am reviewing my pension situation and am struggling to find decent information on a SW stakeholder pension into which I was contributing until a year or two ago. It was a company pension.

The fund name is: Scottish Widows Mixed Ord Ser 2 Pens

Its current value is approx. £4250

I don't think I can further contribute to the SW pension (due to not working there anymore) and I am now in my current employer's scheme anyway. I am trying to work out whether to leave the SW pension alone or should I be looking for options to transfer (if that's possible) into a different stakeholder/personal pension/SIPP that I can operate separately from my company pension. Might it be too small an amount to be worth moving?

I would appreciate if anyone has any info or suggestions on a route I might take to review this. I am happy to take independent advice if necessary (especially as I am starting out with S&S ISAs as well).

Also, if anyone has any thoughts on the particular fund above, that would be very useful.

EdInvestor

What are the fund choices and charges on the pension?

mlmoneysaver

Thanks for the reply Ed, I will look into the charges and choices. From memory the choice was quite restricted but I'll get the facts and be back...

dunstonh

It's a stakeholder pension so fund choice will be limited. If its the full retail version then around 29 funds. If its a cut down version then anything from 3.

Charges will be a flat rate 1% p.a

mlmoneysaver

Thank-you for the reply. I just spoke to SW. They are sending me a pack containing the fund choices but they have confirmed that the annual management charge is 1%. I'll come back later with the fund choices...

mlmoneysaver

Scottish Widows have come back with the following information:

Charges: 1% (on SW funds, some external funds are available at different charges, I am awaiting their new charge sheet)

Options:
1. Continue plan as an Individual Personal Pension with choice of monthly contribution level (can be changed anytime).
2. Continue plan as a Group Personal Pension if new employer is willing to contribute.
3. The payments being made to the plan can be stopped (paid up). Contributions can restart as in options 1 & 2.
4. Transfer plan to another pension provider. Option 4 comes with a warning:

"Please note that where you qualify for a protected retirement age (?) or where you have protected tax free cash (?) this may be lost on transfer. If you have applied to HMRC for Enhanced Protection (?) this may be lost if the tansfer is not a permitted transfer."

It also says that I should check on the pension provision offered by my new employer. I have taken up the money purchase scheme with my new employer (I put in 4%, they put in 8%, AVCs are available but am investigating the other options first). This is invested 100% in Threadneedle Adventurous Pathway.

Due to post length I'll paste the list of available funds through SW in a new post but I guess my questions are:

1. Is it a good idea to investigate the SW/other provider options before going with the AVCs with current employer?

2. Do the funds in the next post represent a good diversification of investments over the long term (for info. I am early 30s)?

3. Currently, I am 100% invested in SW Mixed Pension Series 2. Does anyone have any opinions of this fund. Plan value approx. £4200

4. What does the warning with Option 4 mean?

5. I am a higher rate tax payer, so I think I can claim an additional 20% tax relief on contributions? If so, is this done through my normal tax return? And, how is the money paid - do I get it or is it invested in the pension scheme?

Sorry about the long posts but any info/opinions would be very much appreciated.

mlmoneysaver

Pension Funds - Series 2

INTERNAL

Scottish Widows Absolute Return Macro Pen Series 2
Scottish Widows Adventurous Solution Pen Series 2
Scottish Widows All Share Tracker Pension Series 2
Scottish Widows Balanced Portfolio Pension Ser 2
Scottish Widows Balanced Solution Pension Series 2
Scottish Widows Building Society Pension Series 2
Scottish Widows Cash Pension Series 2
Scottish Widows Cautious Managed Pension Series 2
Scottish Widows Cautious Portfolio Pension Ser 2
Scottish Widows Cautious Solution Pension Series 2
Scottish Widows Consensus Pension Series 2
Scottish Widows Corporate Bond Pension Series 2
Scottish Widows Defensive Managed Pension Series 2
Scottish Widows Defensive Solution Pension Series 2
Scottish Widows Discovery Solution Pension Ser 2
Scottish Widows Diversified Assets Pension S2
Scottish Widows Dynamic Property Pension S2
Scottish Widows Dynamic Solution Pension Series 2
Scottish Widows Emerging Markets Pension Series 2
Scottish Widows Environmental Pension Series 2
Scottish Widows Ethical Pension Series 2
Scottish Widows European Pension Series 2
Scottish Widows European Real Estate Pen Series 2
Scottish Widows Fixed Interest Pension Series 2
Scottish Widows Global Equity Pension Series 2
Scottish Widows High Income Bond Pension Series 2
Scottish Widows Indexed Stock Pension Series 2
Scottish Widows Int Equity Tracker Pension Ser 2
Scottish Widows International Pension Series 2
Scottish Widows Japanese Pension Series 2
Scottish Widows Mixed Pension Series 2
Scottish Widows Mul-Mng Glo Real Est Pension S2
Scottish Widows Multi-Mngr Intl Equity Pen Ser 2
Scottish Widows Multi-Mngr UK Equity Focus Pen Ser 2
Scottish Widows Multi-Mngr UK Equity Growth Pe S 2
Scottish Widows Multi-Mngr UK Equity Income Pen Ser 2
Scottish Widows North American Pension Series 2
Scottish Widows Opportunities Portfolio Pens Ser 2
Scottish Widows Pension Portfolio Four Series 2
Scottish Widows Pension Portfolio One Series 2
Scottish Widows Pension Portfolio Three Series 2
Scottish Widows Pension Portfolio Two Series 2
Scottish Widows Pension Protector Pension Series 2
Scottish Widows Progressive Portfolio Pension Ser2
Scottish Widows Property Pension Series 2
Scottish Widows SafetyPlus Pension Series 2
Scottish Widows Strategic Income Bond Pension Ser2
Scottish Widows Strategic Solution Pension Series 2
Scottish Widows UK Equity Index Pension Series 2
Scottish Widows UK Equity Pension Series 2
Scottish Widows UK Fixed Int Index Trk Pens Ser 2
Scottish Widows UK Opportunities Pension S2
Scottish Widows UK Real Estate Pension Series 2


EXTERNAL

SW Aberdeen American Growth Pension Series 2
SW Aberdeen European Smaller Companies Pen Ser 2
SW Aberdeen Stockmarket Managed Pension Series 2
SW Aberdeen UK Growth Pension Series 2
SW Artemis UK Growth Pension Series 2
SW Artemis UK Smaller Companies Pension Series 2
SW Baillie Gifford 60:40 Worldwide Equity Pen S 2
SW Baillie Gifford Japanese Eqty Pen S2
SW Baillie Gifford Managed Series 2
SW Baillie Gifford Nth Amer Eqty Pen S2
SW BlackRock Emerging Markets Pension Series 2
SW BlackRock Managed Pension Series 2
SW BlackRock UK Dynamic Pension Series 2
SW BlackRock UK Smaller Companies Pension Ser2
SW BlackRock UK Special Sits Pen S2
SW Fidelity 50:50 Special Situations Pen Series 2
SW Fidelity American Pension Series 2
SW Fidelity American Special Situations Pens Ser 2
SW Fidelity European Pension Series 2
SW Fidelity Global Special Situations Pen Series 2
SW Fidelity International Pension Series 2
SW Fidelity Japan Pension Series 2
SW Fidelity Managed Pension Series 2
SW Fidelity MoneyBuilder Income Pen S2
SW Fidelity Multi Asset Strategy Pen S2
SW Fidelity Multi-Mngr Equity Inc Pension S2
SW Fidelity Multi-Mngr Special Sits Pension S2
SW Fidelity South East Asia Pension Series 2
SW Fidelity Special Situations (2006) Pen Series 2
SW Fidelity UK Growth Pension Series 2
SW Gartmore Managed Pension Series 2
SW Invesco Perpetual Corporate Bond Pension Ser 2
SW Invesco Perpetual Distribution Pension Series 2
SW Invesco Perpetual Global Bond Pension Series 2
SW Invesco Perpetual High Income Pension Series 2
SW Invesco Perpetual Managed Pension Series 2
SW Investec American Pen S2
SW Investec Cautious Managed Pension Series 2
SW Investec Global Free Enterprise Pen S2
SW JPM Cautious Total Return Pension Series 2
SW JPM Emerging Markets Pen S2
SW JPM Europe Dynamic Pen S2
SW JPM Managed Pension Series 2
SW JPM Natural Resources Pen S2
SW Jupiter Distribution Pension Series 2
SW Jupiter Income Pension Series 2
SW Jupiter UK Growth Pension Series 2
SW Jupiter Undervalued Assets Pension Series 2
SW New Star Fixed Interest Pension Series 2
SW New Star Higher Income Pension Series 2
SW New Star Managed Distribution Pension Series 2
SW New Star UK Alpha Pension Series 2
SW New Star UK Property Pension S2
SW Newton 60-40 Global Eqty Pen S2
SW Newton Cautious Managed Pension Series 2
SW Newton Continental European Pension Series 2
SW Newton Growth Pension S2
SW Newton Higher Income Pension Series 2
SW Newton Income Pension Series 2
SW Newton International Bond Pension Series 2
SW Newton International Growth Pension Series 2
SW Newton Managed Income Pen S2
SW Newton Managed Pension Series 2
SW Newton Oriental Pension Series 2
SW Newton Stockmarket Managed Pension Series 2
SW Newton UK Equity Pen S2
SW Schroder European Alpha Plus Pen S2
SW Schroder Gilt & Fixed Interest Pension Series 2
SW Schroder Global Property Sec Pension S2
SW Schroder Income Maximiser Pension S2
SW Schroder Income Pension Series 2
SW Schroder Managed Pension Series 2
SW Schroder Medical Discovery Pension Series 2
SW Schroder Tokyo Pension Series 2
SW Schroder UK Alpha Plus Pension Series 2
SW Schroder UK Equity Pension Series 2
SW Schroder UK Mid 250 Pension Series 2
SW Schroder UK Smaller Companies Pension Series 2
SW Schroder US Smaller Companies Pension Series 2
SW SocGen Technology Pension Series 2
SW SSgA 50:50 Global Equity Index Pen S 2
SW SSgA Asia Pac Ex Jap Eqty Idx Pen S2
SW SSgA Europe Ex UK Equity Idx Pen S2
SW SSgA Idx Lkd Gilts All Stocks Idx Pen S2
SW SSgA Idx Lkd Gilts Over 5 Yrs Idx Pen S2
SW SSgA International Equity Ind Pen Ser 2
SW SSgA Japan Equity Idx Pen S2
SW SSgA North America Equity Idx Pen S2
SW SSgA Sterling Liquidity Pen S2
SW SSgA Stg Corp Bds All Stocks Idx Pen S2
SW SSgA UK Cnvtl Glts Over 15 Yrs Idx Pen 2
SW SSgA UK Equity Index Pension Series 2
SW Threadneedle American Select Pens Ser 2
SW Threadneedle European Select Pens Ser 2
SW Threadneedle Global Select Pension Ser 2
SW Threadneedle UK Corporate Bond Pension Series 2
SW UBS Global Optimal Pension Series 2
SW UBS UK Select Pension Series 2

EdInvestor

mlmoneysaver wrote: »

Charges: 1% (on SW funds, some external funds are available at different charges, I am awaiting their new charge sheet)

This looks fine and the fund choice is excellent.No need to move this money to another pension, just redeploy the money into some of the new funds offered.

You can cross check the funds on the list against the top-rated ones in the market here:

https://www.citywire.co.uk/Funds/home.aspx


[/quote]4. Transfer plan to another pension provider. Option 4 comes with a warning:"Please note that where you qualify for a protected retirement age (?) or where you have protected tax free cash (?) this may be lost on transfer. If you have applied to HMRC for Enhanced Protection (?) this may be lost if the tansfer is not a permitted transfer."[/quote]

None of this is likely to be applicable.

AVCs are available but am investigating the other options first). This is invested 100% in Threadneedle Adventurous Pathway.

Wouldn't bother with this the pension is much better.

2. Do the funds in the next post represent a good diversification of investments over the long term (for info. I am early 30s)?

Yes, excellent choice of external funds, with several top performers .

3. Currently, I am 100% invested in SW Mixed Pension Series 2. Does anyone have any opinions of this fund. Plan value approx. £4200

Dump this fund, replace with 6-8 others.

5. I am a higher rate tax payer, so I think I can claim an additional 20% tax relief on contributions? If so, is this done through my normal tax return? And, how is the money paid - do I get it or is it invested in the pension scheme?

If your company scheme is an occupational one, then it is probably claiming the extra tax relief.If it's a GPP. then you need to claim the extra through your tax return.

dunstonh

It should be noted that SW are about to make a large number of changes to their external fund range. Your IFA (if you are using one) should have the list

mlmoneysaver

EdInvestor wrote: »

This looks fine and the fund choice is excellent.No need to move this money to another pension, just redeploy the money into some of the new funds offered.

You can cross check the funds on the list against the top-rated ones in the market here:

www.citywire.co.uk/Funds/home.aspx

Thanks for the reply Ed. I am going to move from just having the one fund to multiple funds.

dunstonh's reply about SW making changes has been noted. Thank-you for the warning.

mlmoneysaver

dunstonh wrote: »

It should be noted that SW are about to make a large number of changes to their external fund range. Your IFA (if you are using one) should have the list

Point noted, I didn't know about the changes so that is useful information to me, thanks very much. I will get an update from SW on their new fund range...