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  • FIRST POST
    • 123mat123
    • By 123mat123 21st Aug 19, 12:56 PM
    • 68Posts
    • 13Thanks
    123mat123
    moving Stakehold pension to SIPP
    • #1
    • 21st Aug 19, 12:56 PM
    moving Stakehold pension to SIPP 21st Aug 19 at 12:56 PM
    I have an L&G stakeholder pension of about 155k

    It is pretty static in that I no longer contribute to it

    I plan to retire in maybe 3 years at age 60

    I was happy to just let it trundle along.

    L&G are now transfering all their Stakeholder pensions to another company (ReAssure) so wanted to know what people's opinions are
    on transferring pensions to a SIPP.

    I currently have HL SIPP, and would be comfortable with investing in Vanguard's mixed equity/bond products.

    I appreciate HL are not the cheapest.

    It is not clear the costs of using L&G as a platform, I think 1%

    Are there any less obvious considerations I should take into account. I've had no problems with L&G, and Reassure will apparently provide same service/charges.

    I can't explain my motivation to want to move to a SIPP (transparency ?, half hosting cost ?), so I would welcome any comments....
Page 1
    • Albermarle
    • By Albermarle 21st Aug 19, 1:06 PM
    • 1,431 Posts
    • 919 Thanks
    Albermarle
    • #2
    • 21st Aug 19, 1:06 PM
    • #2
    • 21st Aug 19, 1:06 PM
    Firstly the change from L&G to Reassure should not be a reason to move the stakeholder as it should bring no disadvantage for you .
    So a reason to move could be for lower charges, so you need to get clarity on L&G charges so you can compare properly. ( you might also at the same time look at cheaper SIPP provider than HL)
    Another reason could be a wider range of investments ( but it seems you have a SIPP and only use one or two Vanguard funds)
    With some pensions a larger combined fund can get you a bigger discount
    Probably the biggest reason to move a pension is so when you retire and start taking funds from it , that it has all the facilities for drawdown etc as some older pensions do not .
    • SonOf
    • By SonOf 21st Aug 19, 1:30 PM
    • 1,137 Posts
    • 1,373 Thanks
    SonOf
    • #3
    • 21st Aug 19, 1:30 PM
    • #3
    • 21st Aug 19, 1:30 PM
    I currently have HL SIPP, and would be comfortable with investing in Vanguard's mixed equity/bond products.
    That puts you at the more expensive end of things. Some may consider it a big difference. Others less so.
    Modern SHP around 0.5%
    Modern PPP around 0.3%
    HL plus VLS is 0.67%

    It is not clear the costs of using L&G as a platform, I think 1%
    L&G do not operate a platform. They did have a share in a platform but sold that some years back to Aegon.

    I've had no problems with L&G, and Reassure will apparently provide same service/charges.
    You wont notice any difference. This should not be a driver on your decision to move.
    • 123mat123
    • By 123mat123 21st Aug 19, 2:59 PM
    • 68 Posts
    • 13 Thanks
    123mat123
    • #4
    • 21st Aug 19, 2:59 PM
    • #4
    • 21st Aug 19, 2:59 PM
    That puts you at the more expensive end of things. Some may consider it a big difference. Others less so.
    Modern SHP around 0.5%
    Modern PPP around 0.3%
    HL plus VLS is 0.67%



    L&G do not operate a platform. They did have a share in a platform but sold that some years back to Aegon.



    You wont notice any difference. This should not be a driver on your decision to move.
    Originally posted by SonOf
    Yes, maybe I should focus on cost - there would be a considerable saving in moving existing HL SIPP and the L&G Stakeholder to a new SIPP on Interactive Investor (capped at 120 / year)
    • Albermarle
    • By Albermarle 21st Aug 19, 3:18 PM
    • 1,431 Posts
    • 919 Thanks
    Albermarle
    • #5
    • 21st Aug 19, 3:18 PM
    • #5
    • 21st Aug 19, 3:18 PM
    You might want to think about extra costs for a SIPP when you retire and start to take money from the pension .
    The SIPPs with the cheapest charges tend to charge extra for drawdown, withdrawals etc .
    https://monevator.com/compare-uk-cheapest-online-brokers/
    http://www.comparefundplatforms.com/
    • midlandsimon
    • By midlandsimon 22nd Aug 19, 2:33 PM
    • 29 Posts
    • 16 Thanks
    midlandsimon
    • #6
    • 22nd Aug 19, 2:33 PM
    • #6
    • 22nd Aug 19, 2:33 PM
    As mentioned above, all depends on the value of your plan. If a smaller pot, find a platform SIPP which has a % fee basis, anything larger then you should be shopping for a fixed fee provider. Plenty of good platforms out there which will give you far greater access and control than your current stakeholder arrangement.
    • Albermarle
    • By Albermarle 22nd Aug 19, 3:25 PM
    • 1,431 Posts
    • 919 Thanks
    Albermarle
    • #7
    • 22nd Aug 19, 3:25 PM
    • #7
    • 22nd Aug 19, 3:25 PM
    If a smaller pot, find a platform SIPP which has a % fee basis, anything larger then you should be shopping for a fixed fee provider.
    Generally this is true but can be exceptions .
    Some % fee SIPPS have a low cap on the maximum charge if you are invested in shares/Investment trusts/ETF's rather than the more usual funds. Even if you are 50% funds and 50% traded items then it can still change the fees calculation.
    Also in drawdown most charge extra, but two % fee ones do not ( HL & Fidelity) so again this can affect the fees calculation.
    • Alexland
    • By Alexland 22nd Aug 19, 10:04 PM
    • 5,676 Posts
    • 4,953 Thanks
    Alexland
    • #8
    • 22nd Aug 19, 10:04 PM
    • #8
    • 22nd Aug 19, 10:04 PM
    there would be a considerable saving in moving existing HL SIPP and the L&G Stakeholder to a new SIPP on Interactive Investor (capped at 120 / year)
    Originally posted by 123mat123
    Remember the II SIPP fee of 120 pa is in addition to the II account fee of at least 120 pa so a minimum of 240 pa and possibly more depending on your trade activity.

    I agree it's worth looking at capping you platform fee by holding ETFs with Fidelity at 45 pa plus 10 trade costs. You could get a very similar asset allocation to VLS by holding a 2 fund portfolio with a global equity ETF and a bond ETF. However it's worth remembering that ETFs have no FSCS protection and SIPPs only have 85k FSCS protection.

    Alex
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