Reply to: Closing Company - What happens to Company Pension?

[DallasDad]

Consider ETF global trackers from Vanguard (VWRL) for the investment (they are classed as shares so DON'T get charged the 0.45% platform fee...)

I also use Vanguard (Vanguard LifeStrategy 80% ) but now might not be the right time to invest - my chosen fund has been pretty flat for a few months now since the big rises last year.
I also have a fair bit invested in Fundsmith Equity T Acc, and that's doing a lot better by several percentage points at the moment in comparison but that one does carry higher fees

Year on year over time both have been brilliant.

[lukemg]

Curiously my lad spent some time analysing my portfolio which I have lovingly developed (making a ton on emerging markets at the moment) and came to a near identical conclusion: "Vanguard LifeStrategy 60% Equity- It is only 22bps, which is pretty good and you could put the whole lot in there"

Would not argue against the 60 (%in shares) option to reduce the risk slightly. For me, I can stomach the risk and intend to run the SIPP well into retirement using drawdown to access over time so I am not worried about shifting to a big bond position in case of a drop just before retirement, which used to be conventional wisdom.
If a drop happens, I will just ride out the drop as I have in the past and expect the larger shares position to perform better over longer periods.

[Cirrus]

The Future is Passive

You could do a LOT worse than a Vanguard lifestrategy 80 fund (20% bonds to reduce risk) as a core holding, globally diversified, low cost, rebalances to bonds automatically. Setup up monthly payment and hold your nerve if it takes a kicking, forget it for 5 years, job done....

Curiously my lad spent some time analysing my portfolio which I have lovingly developed (making a ton on emerging markets at the moment) and came to a near identical conclusion: "Vanguard LifeStrategy 60% Equity- It is only 22bps, which is pretty good and you could put the whole lot in there"

[lukemg]

If you hold a fund (unit trust or OEIC) HL are charging you 0.45% on it up to the value of GBP 250,000.

That is true, although it's less for ETF's like VWRL which are treated as shares. New Vanguard platform is much cheaper for funds(0.15%) but you can only choose from their funds/etf's AND no SIPP option yet (it's coming apparently)
You could do a LOT worse than a Vanguard lifestrategy 80 fund (20% bonds to reduce risk) as a core holding, globally diversified, low cost, rebalances to bonds automatically. Setup up monthly payment and hold your nerve if it takes a kicking, forget it for 5 years, job done....

I am transferring a JISA over this week.

[Fred Bloggs]

Interestingly I put some money into Vanguard a few days ago (on HL). My lad works for Goldman's and he advised me that passive investing is a lot cheaper. I'll check whether I'm saving the 0.45%. I assumed everything on a Vantage SIPP was charged. Vanguard themselves don't appear to have SIPP options; only ISAs.

If you hold a fund (unit trust or OEIC) HL are charging you 0.45% on it up to the value of GBP 250,000.

[Cirrus]

Consider ETF global trackers from Vanguard (VWRL) for the investment (they are classed as shares so DON'T get charged the 0.45% platform fee...)

Interestingly I put some money into Vanguard a few days ago (on HL). My lad works for Goldman's and he advised me that passive investing is a lot cheaper. I'll check whether I'm saving the 0.45%. I assumed everything on a Vantage SIPP was charged. Vanguard themselves don't appear to have SIPP options; only ISAs.

[Lockhouse]

You'll probably have to pay an early exit charge but once you reach 55 this is capped at 1%.

[lukemg]

First - You are almost certainly being ripped to bits on charges by this old setup, get it transferred soon as !
RSA essentially outsourced all their accounts like this to Phoenix and intend to run them down to nothing over the coming years/decades. They are happy to have people move away and probably accounts for why they have limited investment/drawdown options.

HL are good at this, I have transferred a few to them and they did almost all the work once I sent the details to them.

Consider ETF global trackers from Vanguard (VWRL) for the investment (they are classed as shares so DON'T get charged the 0.45% platform fee...)

If it's a decent chunk consider moving to cheaper platform II are good for larger sums (check out Monevator.com too)

Our updated table will help you find the right online broker

[syrio]

Just spoken to Hargreaves Lansdown...

Just be aware that if you are investing in funds (OEICS, UTs) Hargreaves Lansdown are probably the most expensive brokers out there if you have large amounts with them due to their charging structure.

[SueEllen]

But surely any "company pension", even an old fashioned version thereof, isn't owned by the company so won't cease to exist when the company does.

Yep.

Pension schemes are suppose to be all known to the Pensions Regulator.

[FrontEnder]

Just spoken to Hargreaves Lansdown. Their guess is you don't need to see an IFA if it's a scheme you've just paid into. If it were defined benefits or had additions (life assurance etc) then that might be different. Note to get a decision from Phoenix involves some rigmarole of first getting a Retirement Options Document so no quick answer.

You only need to get advice from an IFA if it's a defined benefit scheme with a value over £30k.

[VectraMan]

As it happens I've just sent off the form to transfer a previous employer pension to my HL SIPP. They claim that's all I have to do, but I did have to track down the original pension first and find account number/value etc.

But surely any "company pension", even an old fashioned version thereof, isn't owned by the company so won't cease to exist when the company does.

[Cirrus]

Just spoken to Hargreaves Lansdown. Their guess is you don't need to see an IFA if it's a scheme you've just paid into. If it were defined benefits or had additions (life assurance etc) then that might be different. Note to get a decision from Phoenix involves some rigmarole of first getting a Retirement Options Document so no quick answer.

[Cirrus]

Pension Transfers | Transfer your Pension to a SIPP ?

I'll give HL a call. I already have a SIPP with them.

[northernladuk]

Pension Transfers | Transfer your Pension to a SIPP ?