Moving Pension to New Employer
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RacingDriver
Posts: 392 Forumite
Currently, I have a pension with Scottish Widows (approximate value £4000). It is invested in a fund called 'Pens Portfolio Two'. I believe the annual fee is 0.75%, however, I may be incorrect.
My new employer has a Defined Contribution scheme with Fidelity.
I am having difficulty finding fee information for both, so I can compare, and ultimately decide whether to move my old pension to my new one?
My new employer has a Defined Contribution scheme with Fidelity.
I am having difficulty finding fee information for both, so I can compare, and ultimately decide whether to move my old pension to my new one?
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Comments
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Ask the two providers to confirm their fees on the funds you are interested in - but remember fees aren't everything. A cheap fund with a long history of hopeless returns and no obvious prospects of an improvement isn't necessarily a great idea...0
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Has your new employer arranged you a login to Fidelity PlanViewer yet? If so you should be able to see the fund choices and fees.
Alex0 -
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RacingDriver wrote: »No, not get access to PlanViewer yet.
How long has it been since your first payroll contribution? I would ask questions with your HR department if you have been waiting over a month for a login. Also are you making sufficient contributions to get maximum employer matching?
My workplace pension is with Fidelity and the default lifestyle funds have OCFs around 0.7% but they offer a global passive fund at 0.32% and a gilt bond fund at 0.25% if you want a simple low cost 2 fund portfolio. Still the fund choices your employer gets might be different.
Alex0 -
How long has it been since your first payroll contribution? I would ask questions with your HR department if you have been waiting over a month for a login. Also are you making sufficient contributions to get maximum employer matching?
My workplace pension is with Fidelity and the default lifestyle funds have OCFs around 0.7% but they offer a global passive fund at 0.32% and a gilt bond fund at 0.25% if you want a simple low cost 2 fund portfolio. Still the fund choices your employer gets might be different.
Alex
I haven't made my first contribution yet. I am just signing up to their pension plan, and as part of this I have the option of transferrring in my pension from my previous employer.
I will be making full use of employer contribution matching.0 -
In which case I suggest you wait until you can see your fund choices as there is no advantage to transfering now as you should be able to call them to arrange a transfer later. I expect the choices will be slightly better than SW and you will decide to transfer in.
Alex0 -
.I believe the annual fee is 0.75%, however, I may be incorrect
Often there is a charge for the fund ( Pension Portfolio 2 in this case ) and a further charge for the pension provider/platform ( SW in this case ) .
Sometimes there is only one charge and sometimes there is then a discount depending on the amount in the fund . You will have to call/e mail SW and ask them explicitly how much you are actually paying.0 -
To keep workplace pensions simple they often wrap up the platform costs into the fund choices. For example the 0.32% global passive fund in my Fidelity scheme is 100% invested in a 0.02% Blackrock institutional-only fund which means Fidelity are essentially charging 0.30% for the platform cost.
Alex0 -
I have an Aviva one where there is a flat charge of 1% for the platform and no funds fees as long as you only use their standard funds . With Standard Life it is the other way around - no platform charge but 1% for their funds.
Then in both cases there is a discount which was negotiated by previous employers.0 -
Albermarle wrote: »I have an Aviva one where there is a flat charge of 1% for the platform and no funds fees as long as you only use their standard funds . With Standard Life it is the other way around - no platform charge but 1% for their funds.
Then in both cases there is a discount which was negotiated by previous employers.
Yes my wife's Aviva one is the same - the 1% is a published rate to allow an advisor to claim they got their client a discount before adding in their costs but if applying for a small fee via Cavendish then you get it for around half the price anyway. It's a good product but no pension is worth 1%.
Alex.0
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