Old Allied Dunbar Pension
foreversummer
Posts: 837 Forumite
Hi
So hubby now reaching 60 years of age with an old Allied Dunbar Pension, now Zurich. He has the grand sum of £25000. He won't be retiring and we are consider transferring it to a SIPP where we will choose our own funds and keep it invested with a view to drawdown later.
Whenever he has received a annual statement in the past, the transfer fees were huge. If he transfers it once he has reached the magic retirement age will transfer fees still apply? There is no mention of any exit fees in the correspondence they have sent him. I also notice on their website that they talk about a government limit of 1% on exit fees. I'm a bit confused how this fits into the picture.
Obviously we can ring and ask them tomorrow but just thought you learned people might know the answer.
Foreversummer
So hubby now reaching 60 years of age with an old Allied Dunbar Pension, now Zurich. He has the grand sum of £25000. He won't be retiring and we are consider transferring it to a SIPP where we will choose our own funds and keep it invested with a view to drawdown later.
Whenever he has received a annual statement in the past, the transfer fees were huge. If he transfers it once he has reached the magic retirement age will transfer fees still apply? There is no mention of any exit fees in the correspondence they have sent him. I also notice on their website that they talk about a government limit of 1% on exit fees. I'm a bit confused how this fits into the picture.
Obviously we can ring and ask them tomorrow but just thought you learned people might know the answer.
Foreversummer
0
Comments
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Many old AD pensions are actually very cheap once you stop paying into them. They had high contribution charges but low annual charges. So, make sure your reasons for moving it are good enough. Zurich have a number of funds available on those old AD plans.
There is a cap of 1% on transfer charges once you hit the decumulation age (55). There are some types of charges that are not included within that though.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.0 -
Thank you dunstonh.
He currently is investing in the Managed AP fund and a little in the Managed Capital AP fund. I've no idea on the fund charges for these. I am wondering how they compare to the Vanguard LS funds in which I have in my pension with HL.0 -
My wife has an old AD pension that we just found out about and there is no fee for transferring it to a SIPP. It is all in the Managed AP fund and there is a .92% charge on that fund. You can find the details on the Zurich website.
If you invested in VLS through HL the total charge would be .67% (.45% platform plus .22% fund fee). We are thinking of just that move......0 -
Many old AD pensions are actually very cheap once you stop paying into them. They had high contribution charges but low annual charges. So, make sure your reasons for moving it are good enough. Zurich have a number of funds available on those old AD plans.
There is a cap of 1% on transfer charges once you hit the decumulation age (55). There are some types of charges that are not included within that though.
I don’t think the 1% cap applies to conventional with profits policies though?0 -
ffacoffipawb wrote: »I don’t think the 1% cap applies to conventional with profits policies though?
It doesn't apply to market value reductions, no. The 1% cap is for administrative charges on exit, not for when you have a With Profits investment and the insurer wants to pay you the real value of your share instead of the pretend value that appears on the statement.
But it's moot as the OP doesn't have a With Profits policy.0 -
Malthusian wrote: »But it's moot as the OP doesn't have a With Profits policy.
I don't think we know one way or another?0 -
ffacoffipawb wrote: »I don't think we know one way or another?
AD were a unit linked provider.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.0 -
OldMusicGuy wrote: »My wife has an old AD pension that we just found out about and there is no fee for transferring it to a SIPP. It is all in the Managed AP fund and there is a .92% charge on that fund. You can find the details on the Zurich website.
If you invested in VLS through HL the total charge would be .67% (.45% platform plus .22% fund fee). We are thinking of just that move......
Thanks for this. However, have today received a list of funds from the financial adviser who somehow got linked to the pension. The Zurich Managed AP fund on this is showing as 0.17% for the fund expense with an extra yearly charge of 0. Now I'm intrigued why we have different figures. The Managed Capital AP is not showing on there though. I can't find anything on the Zurich website. If you can point me in the right direction I'd much appreciate it.
He also says that there will be no exit or transfer fees once hubby reaches retirement age next week.
Foreversummer0 -
I went by this which is the link direct from the Zurich "view your funds" website:
http://factsheets.financialexpress.net/zuri/APMGD1_HB47_ZUR.pdf
SEDOL number is 0406181, maybe yours is different?
Also, here's the Managed Capital AP fact sheet: http://factsheets.financialexpress.net/zuri/APMGD1_HB48_ZUR.pdf. Shows 4.42% charges....:eek:
These are all easily found on the Zurich website, here's the link: http://webfund6.financialexpress.net/clientsv21/ZurichMyStatement/Widget.aspx?Brand=zuri&viewstate=600#.
I hope you're not paying your FA too much.....;)0 -
OldMusicGuy wrote: »My wife has an old AD pension that we just found out about and there is no fee for transferring it to a SIPP. It is all in the Managed AP fund and there is a .92% charge on that fund. You can find the details on the Zurich website.
If you invested in VLS through HL the total charge would be .67% (.45% platform plus .22% fund fee). We are thinking of just that move......OldMusicGuy wrote: »I went by this which is the link direct from the Zurich "view your funds" website:
http://factsheets.financialexpress.net/zuri/APMGD1_HB47_ZUR.pdf
SEDOL number is 0406181, maybe yours is different?
Also, here's the Managed Capital AP fact sheet: http://factsheets.financialexpress.net/zuri/APMGD1_HB48_ZUR.pdf. Shows 4.42% charges....:eek:
These are all easily found on the Zurich website, here's the link: http://webfund6.financialexpress.net/clientsv21/ZurichMyStatement/Widget.aspx?Brand=zuri&viewstate=600#.
I hope you're not paying your FA too much.....;)
Thank you. I've no idea. I've never met this guy . . . he just appears to have popped up when Zurich wrote to tell my hubby his retirement date is nearly here!
Thank you for the links - my SEDOL number is the same. I just don't understand what the financial adviser has sent me. It is completely at odds with this information. I will of course go back to him and ask for his explanation.
Thank goodness for this forum!
Foreversummer0
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