Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • MrSnappy
    • By MrSnappy 20th Mar 17, 9:10 PM
    • 1Posts
    • 0Thanks
    Pensions transfer conundrum
    • #1
    • 20th Mar 17, 9:10 PM
    Pensions transfer conundrum 20th Mar 17 at 9:10 PM
    Hi all
    I join the forum today with a conundrum I am I hoping you kind people can help me with...
    I am trying to decide whether to transfer a £5k pension pot I currently have in a DC Friends Life pension scheme from my old employer into my current employer’s scheme. The rational being that it would be easier to keep track of and manage but the disparity in the AMC's seems big enough that the returns could be quite different.

    The FL fund is 100% invested in an underlying Blackrock fund: ‘Blackrock (30:70) Currency Hedged Global Equity Index Aquila C’ fund carrying an AMC of 0.4%. But the transfer letter mentions an AMC of 0.31%. Can someone explain why the two would be different? FL insist that the two are different and that the 0.31% is correct but provide no explanation.

    The current employer pension is with Blackrock directly and the fund is ‘Aquila 30:70 currency hedged global equity index fund (launched 30 March 2010)’ but the online factsheet gives no indication of the AMC. However in the original pension booklet it says that that particular fund has an AMC of 0.42% p.a.

    The current employer only matches my pension contributions up to 4% max.
    Does this mean that perhaps I should not transfer the old pot but instead pay contributions into it to make use of lower 0.31% AMCs in that fund? Or am I missing something?

    Would tax be an issue? Any tips would be much appreciated.
Page 1
    • kidmugsy
    • By kidmugsy 20th Mar 17, 9:40 PM
    • 10,512 Posts
    • 7,207 Thanks
    • #2
    • 20th Mar 17, 9:40 PM
    • #2
    • 20th Mar 17, 9:40 PM
    Sometimes an employer's pension fund will get an atypically good deal from a provider. Sometimes that deal doesn't apply when the employee leaves that firm's employment. Sometimes the provider will not accept contributions from an ex-employee.
    • Linton
    • By Linton 20th Mar 17, 10:02 PM
    • 9,373 Posts
    • 9,505 Thanks
    • #3
    • 20th Mar 17, 10:02 PM
    • #3
    • 20th Mar 17, 10:02 PM
    0.1%/year is hardly something to get too excited about. It amounts to £5 in a year from your £5K investment. The value of the investment can change by that every day. AMC's can vary over the short/medium time depending on the value of the fund and what expenses the fund actually has and over the longer term by increased efficiency. What an old booklet says on the matter is of marginal interest.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,362Posts Today

5,769Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin