Pension Transfer - Contracted out

goingonholiday_2

This is my first post but have been reading for a while, excellent site and forum!

I have two protected rights (contracted out, NI rebate sent to the pension provider) personal pension plans with Skandia from a previous employer (group personal pension, combined value about £10k). I am currently in a final salary company scheme, I can’t transfer these two plans to the company scheme and want to have some flexibility in where I invest, can anyone recommend a provider/supermarket that will accept protected rights transfers and deal with a consumer?

I have tried going directly to Skandia but they aren't very helpful to a consumer and only suggest I find an IFA - my preference is to do this myself.

Many thanks

EdInvestor

If you know what you want, you'd be best to go through a discount broker like
https://www.cavendishonline.co.uk which will rebate the charges.

But they won't provide advice, and most companies won't either - they want you to get advice from an IFA.

Most insurers should take protected rights money.It's a matter of choosing one which preferably a)offers a range of high performance funds combined with b) low charges.

The FSA's site gives you an idea of the range of the latter.

https://www.fsa.gov.uk/tables

You can get fund performance from

https://www.trustnet.com
Look at the pension section.

dunstonh

I have tried going directly to Skandia but they aren't very helpful to a consumer and only suggest I find an IFA - my preference is to do this myself.

They have to refer you to an IFA. If they were to do it themselves, they would face the wrath of the FSA. Do not mistake compliance with the rules as being negative towards the consumer.

Skandia's pensions used to be one of the best around. Indeed, depending on the terms of your pension (group schemes had negotiated terms) you may well find that you have access to over 300 funds but on a much better charging struture than the normal retail product. Skandia pensions, assuming in-house funds, usually beat stakeholder pensions on charges if the term is 20 years or more.

If you want flexibility of investment, then you cannot get better than Skandia without moving to a SIPP.

The FSA's site gives you an idea of the range of the latter.

www.fsa.gov.uk/tables

For someone wanting investment flexibility, in other words, large fund choice, then the fsa tables are a complete waste of time. They assume default fund and not external managed funds.

www.trustnet.com
Look at the pension section.

Which is not extensive on pensions. So do not rely on this as your sole area of research as not all funds are present.

A number of providers will not accept pension transfers without it going through an IFA. So, that will limit your selection if you choose not to go down that route. It's done to protect the consumer as pension transfers are considered higher risk than normal contributions . Indeed, some types of transfers have to be reported to the FSA, although GPPP to PPP/SIPP doesn't. Skandia did also arrange some COMPs (i believe) so make sure its a GPPP and not a COMP. The COMP may have better benefits than the GPPP.

whiteflag_3

want to have some flexibility in where I invest, can anyone recommend a provider/supermarket that will accept protected rights transfers and deal with a consumer?

If you want flexibility in where to invest you wont do better than Skandia- why do you feel the need to transfer out?
Are you in their guaranteed fund?

goingonholiday_2

Thanks to everyone for your replies.

I don't want to move away from Skandia it's just that they wouldn't let me transfer from the newton fund it's invested in to another fund without going through an IFA. I will try again, if not I guess I'll try to find an IFA to do it.

Thanks again.

dunstonh

I don't want to move away from Skandia it's just that they wouldn't let me transfer from the newton fund it's invested in to another fund without going through an IFA. I will try again, if not I guess I'll try to find an IFA to do it.

If you have no luck, I will email you the form and you can send it back to me and I will send it on to them with my stamp on.