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    • mark88man
    • By mark88man 13th Jan 19, 5:39 PM
    • 3,795Posts
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    Using company provider for post tax free cash pension policy
    • #1
    • 13th Jan 19, 5:39 PM
    Using company provider for post tax free cash pension policy 13th Jan 19 at 5:39 PM
    I am over 55. I am on the point of taking a part of my tax free lump sum (not taxable income) from the DC fund related to my work. The way the provider does that is leave a nominal sum in the original fund (to keep it open for firther contributions) and open a new personal pension for the transferred money

    For as long as I remain with my employer this personal pension will receive a discount of nearly 0.7% off the fund charges, although not off the provider's own charges of around 0.5%. My current portfolio average %age fund charge is just under 1% (the provider has only just started to introduce Vanguard type funds) so I am largely replicating this in the new product as I don't want to make to many changes at once

    By my calculation with 0.7% off the charges, I will have total charges of 0.8% off 100K fund and am better off staying with the same company (whilst still employed) than moving to other providers. Does this calculation match what you have been able to achieve - as it still feels a little expensive. This pot is for funds only I have a separate, smaller, SIPP I use for my equities portfolio

    When I leave the company (at retirement), and take the rest of the pot, then I will make an evaluation of which is cheaper at that point, and will also be looking to lower the cost of my funds sooner rather than later. This is because without the discount my provider is middling to high in the which list of personal pension providers

    Is there anything else I should be looking out for. I do like the idea of having my work pension (uncrystalised) and my new personal pension with the same provider, but I'm not sure if I should !!
    Things happen for a reason. Often the reason is we are stupid & make bad decisions.
    Weight/Health - Fluctuating - better than I was worse than I should be
    End 18: CC:8K@0% - Car Loan:11K@2.8% - Mort:133K@2.1% = 152K
    Decrease in Total Debt 2016:13.4K 2017:8.3K 2018:20K

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