Move Retirement and Death Benefit Scheme

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neildt
neildt Posts: 59 Forumite
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in Pensions, annuities & retirement planning
I have a retirement and death benefit scheme from a previous company I used to work for, which is currently managed through Aviva. I'm was looking to move this to a SIPP so that I can choose funds to invest.

Is there anything I need to be aware of. I have the transfer value of my plan. I note on the statement that the pension is under Conventional With Profit Money Purchase Scheme.
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  • SeniorSam
    SeniorSam Posts: 1,670 Forumite
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    If you contact Hargreaves Lansdown, or any platform you choose, they will arrange it all for you and it's really very simple (for them). Platforms have various charges and they will give you details, or you can look up various companies and compare. It is not necessarily the lowest cost that is the best. HL charges are not the lowest, but their web site is very easy to manage and they do give very good service whenever you speak with them.
    I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.
  • Albermarle
    Albermarle Posts: 22,176 Forumite
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    through Aviva. I'm was looking to move this to a SIPP so that I can choose funds to invest.
    If you want a very large range of funds( thousands ) + the ability to buy IT's; ETF's ; individual shares etc then a SIPP is the place to go.
    However if you would be happy with just a couple of hundred funds to choose from , then a personal pension ( with Aviva for example ) might be a better bet and simpler to operate.

    As already said , the transfer itself is easy enough.
  • neildt
    neildt Posts: 59 Forumite
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    Thanks, I'm familiar with Hargreaves Lansdown as I already have a S&S ISA with them.
  • LHW99
    LHW99 Posts: 4,219 Forumite
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    Don't know the scheme, and someone more knowledgable will undoubtedly correct me, but the use of the term "With profits" makes me wonder if there would be any penalty (eg MVA) if it was moved before the selected 'retirement age'.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    I don't think it's as simple as transferring to another scheme if it's a retirement and death benefits scheme.

    A SIPP doesn't have death benefits. So there will likely be complexities and maybe costs in transferring as you'd be giving those up.
  • Malthusian
    Malthusian Posts: 10,944 Forumite
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    AnotherJoe wrote: »
    I don't think it's as simple as transferring to another scheme if it's a retirement and death benefits scheme.

    A SIPP doesn't have death benefits. So there will likely be complexities and maybe costs in transferring as you'd be giving those up.

    If it's a company scheme and he had some sort of "death in service" cover, that normally would have ended when he left.

    Even if it does still offer life cover over and above the fund value, life cover isn't "safeguarded rights", so the only cost will be the loss of the life cover.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Malthusian wrote: »
    If it's a company scheme and he had some sort of "death in service" cover, that normally would have ended when he left.

    Even if it does still offer life cover over and above the fund value, life cover isn't "safeguarded rights", so the only cost will be the loss of the life cover.


    Then he wouldnt be in a retirement and death benefits scheme, he'd be in a retirement scheme :D

    The loss of life cover could well be substantial since its probably priced at what he bought in at and to buy the equivalent now, much older, would be much more expensive.Needs checking into anyway.
  • neildt
    neildt Posts: 59 Forumite
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    I’ve investigated further. The pension fund value is only £4256 but the transfer value is £4311. The projected fund value is £6490.

    Also on the pension notes it says that ‘This member is entitled to 100% Tax Free Cash’, also ‘Guaranteed minimal pension fund’.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    AnotherJoe wrote: »
    Then he wouldnt be in a retirement and death benefits scheme, he'd be in a retirement scheme :D


    Company DC schemes were often called this (or something similar), because they had an insured DIS benefit included in the rules. This meant one scheme could be used for employees who had the benefit of life cover while in service with the employer, but weren't building up pension benefits within the scheme. The employer almost invariably paid the insurance premium for the DIS.
  • Albermarle
    Albermarle Posts: 22,176 Forumite
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    Also on the pension notes it says that ‘This member is entitled to 100% Tax Free Cash’, also ‘Guaranteed minimal pension fund’.
    You would lose these benefits if you transferred to a SIPP.
    Considering the low value of the pension it seems unlikely having access to thousands of funds would make much difference one way or the other .
    Probably best to leave it where it is.
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