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    Default Whether to switch pension or not

    After reading lot of info here I understand SIPP with HL or II is a good option. But looking at my current pension growth would you consider switching?

    Current pension is with Standard Life
    Total contribution : £53,000 (since 2011)
    Current plan value: £75,000
    Current Fund Name: Standard Life MyFolio Managed III Pension Fund

    This is growth of around 22k.

    I have no idea of fees as they don't display this anywhere. I have asked them and they are going to send me email with details.

    Just found out the fees and its real eye opening!

    Its 1.2% annually of total plan value. This will be approx £900 per year.
    Last edited by legal; 29th June 2017 at 13:08.

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    Quote Originally Posted by legal View Post
    After reading lot of info here I understand SIPP with HL or II is a good option. But looking at my current pension growth would you consider switching?

    Current pension is with Standard Life
    Total contribution : £53,000 (since 2011)
    Current plan value: £75,000
    Current Fund Name: Standard Life MyFolio Managed III Pension Fund

    This is growth of around 22k.

    I have no idea of fees as they don't display this anywhere. I have asked them and they are going to send me email with details.
    Assuming you hold mainly funds like unit trusts and OEIC's then in my opinion you'd be nuts to give HL your money. Ask yourself exactly what will they be doing for you that costs that 0.45% per year? If you hold company shares/investment trusts then the situation changes. Do the sums and see what makes sense. I moved away from HL to II and have been very happy, but the reason was entirely due to charges HL levy.

  3. #3

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    Default advice

    Quote Originally Posted by legal View Post
    After reading lot of info here I understand SIPP with HL or II is a good option. But looking at my current pension growth would you consider switching?

    Current pension is with Standard Life
    Total contribution : £53,000 (since 2011)
    Current plan value: £75,000
    Current Fund Name: Standard Life MyFolio Managed III Pension Fund

    This is growth of around 22k.

    I have no idea of fees as they don't display this anywhere. I have asked them and they are going to send me email with details.

    Just found out the fees and its real eye opening!

    Its 1.2% annually of total plan value. This will be approx £900 per year.
    If I were you, if you don't want to research this properly yourself I'd take proper financial advice.

    Yes it looks like it's done OK over the past 5 years but actually it's done about as well as if you'd just had the lot in a FTSE100 tracker at a 0.1% charge + platform fee of maybe 0.3%.

    You could put it in a SIPP with a much lower fee into a Vanguard tracker for instance but you need to understand your investments and costs.

    Standard Life may also charge a significant fee for moving your money out.

    By the way, if this is your fund it states 0.23% management charge on the graph here http://documents.financialexpress.ne...e/77112878.pdf
    Last edited by Smartie; 29th June 2017 at 13:50.

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    Quote Originally Posted by Smartie View Post
    If I were you, if you don't want to research this properly yourself I'd take proper financial advice.

    Yes it looks like it's done OK over the past 5 years but actually it's done about as well as if you'd just had the lot in a FTSE100 tracker at a 0.1% charge + platform fee of maybe 0.3%.

    You could put it in a SIPP with a much lower fee into a Vanguard tracker for instance but you need to understand your investments and costs.

    Standard Life may also charge a significant fee for moving your money out.

    By the way, if this is your fund it states 0.23% management charge on the graph here http://documents.financialexpress.ne...e/77112878.pdf
    I am ok to research this myself. Just want to know others opinion.

    The fund is https://uk.standardlifeinvestments.c...yFolio_III.pdf
    with 1.40% charge and 0.20 "discount"

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    Quote Originally Posted by legal View Post
    Current Fund Name: Standard Life MyFolio Managed III Pension Fund
    Fund isn't bad, but not great either. Good diversification.

    But what happened in 2016 - I would have expected a big increase in value due to the fall in sterling.

    Any assets held outside the UK, or UK companies dependent on foreign earnings rose significantly in value, and I don't see the effect of that here.

    https://www.trustnet.com/Factsheets/...etype=overview

    Life and Pension Fund Prices and Performance|Standard Life Assurance MyFolio Managed III Series 3 Pension Fund|ISIN:GB00B43XBP53

    Standard Life Investments MyFolio Managed III Ret Fund Factsheet (KRY4 KRFY5 STBAAL @GB:7:KRY4) | Interactive Investor

    when compared with say the benchmark Vanguard Lifestrategy fund, that people on here like:

    https://www.trustnet.com/Factsheets/...eType=overview
    Last edited by FarmerPalmer; 29th June 2017 at 22:19.

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    Quote Originally Posted by Fred Bloggs View Post
    Assuming you hold mainly funds like unit trusts and OEIC's then in my opinion you'd be nuts to give HL your money. Ask yourself exactly what will they be doing for you that costs that 0.45% per year? If you hold company shares/investment trusts then the situation changes. Do the sums and see what makes sense. I moved away from HL to II and have been very happy, but the reason was entirely due to charges HL levy.
    IIRC, there's a point where HL with a %age charge is cheaper than III with a fixed fee, but above that point the fixed fee is better.

    I can't remember where that crossover point is.

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    Quote Originally Posted by chopper View Post
    IIRC, there's a point where HL with a %age charge is cheaper than III with a fixed fee, but above that point the fixed fee is better.

    I can't remember where that crossover point is.
    Easy to work out but it also depends what investments you hold at HL. Unit trusts/OEICs are subject to the full 0.45% where as shares/investment trusts are subject to a cap at HL.

    If you want to use a % based platform rather than HL, look at either Cavendish or Close Brothers. Both of them are % based but charge around half of what HL charge. HTH.

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    With a fund value of 75k you'll definetly be better off moving to iii and just paying the fixed £96 charge each year (plus £1.50 a month for a regular monthly investment).

    Anyone paying a %age fee on a portfolio over 25k is throwing money away.

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    Quote Originally Posted by dingdong View Post
    With a fund value of 75k you'll definetly be better off moving to iii and just paying the fixed £96 charge each year (plus £1.50 a month for a regular monthly investment).

    Anyone paying a %age fee on a portfolio over 25k is throwing money away.
    Correct!
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