Reply to: Old moth infested Group Pension

[Fred Bloggs]

Well my other accounts are with the same one so I thought it might be simpler to keep everything 'all under one roof' as it were. Saying that I've just had a cursory look at charges and it does appear HL to be the cheapest (no annual charge, no charge for buying etc.) so as long as MyCo can pay into this pension it looks like these are the favorites.

You need to be careful with HL. There fees depend on what investments you hold. If you intend to hold unit trusts and/or OEICs, they charge an eye watering 0.45% per year platform fee on anything up to GBP 250k. If you hold shares (including investment trusts), then yes, they can be competitive as their charges are capped. You need to DYOR properly. HTH.

[SueEllen]

Well my other accounts are with the same one so I thought it might be simpler to keep everything 'all under one roof' as it were. Saying that I've just had a cursory look at charges and it does appear HL to be the cheapest (no annual charge, no charge for buying etc.) so as long as MyCo can pay into this pension it looks like these are the favorites.

I suggest you find the forum thread via Google about SIPPs.

[Hobosapien]

Saw an interesting article on state pension over the weekend:

Death of retirement: Can the UK afford the state pension? - BBC News

Although the state pension is hard to live on alone, to buy an equivalent index-linked income from an insurance company would cost more than £250,000. Investment platform Hargreaves Lansdown estimates that to save that much would require £300 a month for 40 years.

Also mentions some calling for state pension to be means tested.

So unless you have a sufficiently large investment by the time you retire, it may be a fools errand to want to top up your state pension if/when with means testing they take away your state pension so you're left worse off or not significantly better off doing it yourself.

[rl4engc]

Why choose a bank?

Well my other accounts are with the same one so I thought it might be simpler to keep everything 'all under one roof' as it were. Saying that I've just had a cursory look at charges and it does appear HL to be the cheapest (no annual charge, no charge for buying etc.) so as long as MyCo can pay into this pension it looks like these are the favorites.

[SueEllen]

I might look into Lloyds for SIPP (if they do them) as my S&S ISA's and current account are with them.

Already in passive funds, my plan is to max out two ISAs each year but if there's any left drip feed it into a directors pension.

Why choose a bank?

The online operators tend to be cheaper than banks for pensions.

There is a nice long thread on this forum somewhere explaining SIPPs.

[rl4engc]

If you want to be part of the trendy, sassy, BMW driving, Netfix box set binging, L'Enclume eating club, you need to choose low cost passive funds.

I might look into Lloyds for SIPP (if they do them) as my S&S ISA's and current account are with them.

Already in passive funds, my plan is to max out two ISAs each year but if there's any left drip feed it into a directors pension.

[rl4engc]

Is it a defined benefit pension i.e. final salary) and 8k is the annual amount you'd get, or is 8k the total pot size?

No it was just a basic one, they maych your inputs up to 7% I think it was.

[Cirrus]

Get In with The In Crowd

Your question seems to be not whether you can transfer it but whether you could top it up.

I looked at topping up one of my pensions but the charges were ridiculous (5%). Also there are no on-line management capabilities. And they didn't offer draw-down. So I would put any new money into a SIPP. HL is very good but the charges are higher than others unless you like to gamble all day by trading. You might want to wait and see if Vanguard introduce a SIPP. Which of course brings me to pull out the soapbox - if you want to be part of the trendy, sassy, BMW driving, Netfix box set binging, L'Enclume eating club, you need to choose low cost passive funds.

[mudskipper]

Ditto - I transferred mine into HL. Just filled out the forms and it was done.

[Platypus]

I've recently started a SIPP, so here's my understanding, per an IFA:

Start a SIPP, one which accepts company contributions, and you can dump money in from yourco, which reduces your corporation tax bill. e.g. save £2k CT for each £10k transferred.

You can also transfer old company and personal pension pots in to the same SIPP.

You might find that your old company pot has better benefits than a SIPP offers e.g. allows more than 25% tax free lump sum. If so, your IFA is likely to recommend that you keep the old company pension as is.

HTH.

[SueEllen]

Good reply thanks, I've not actually got a SIPP provider yet, so do you mean just set one up with 0 balance like you do with an ISA, before they sort out transferring from the old group one?

I actually had a SIPP so can't answer you in that.

I suggest you contact one of the SIPP providers and ask them. As most of them want your business they will answer you.

[VectraMan]

I transfered an occupational pension into a SIPP with Hargraves Lansdown, you will probably be asked to see an IFA which on a pot that small might not be worth it

I also did this recently. It took a couple of phone calls to get an account number and then had to wait for a letter to get the value but after that it was as simple as filling out one of the transfer forms HL insist on sending me every month. Also about £8k as it turned out but at least I know where it is now.

[FrontEnder]

Back in my permie days (to 2007) I was a member of my employers personal pension scheme, after I left they kept sending statements and I've just recently converted it to online management and even switched what fund the money is invested in (circa £8k). It's not had any contributions since I left.

Question is, can I (or what do I need to do to) use this as my SIPP/Directors Pension? I'm keen to reduce MyCo profits and squirrel some money into a pension pot, to go with my ISAs.

From memory, when I had queries about the pension (Standard Life) they used to tell you to GTFO and talk to the pension provider, whom my old company used to use to administer these pensions.

Any ideas?

Is it a defined benefit pension i.e. final salary) and 8k is the annual amount you'd get, or is 8k the total pot size?

If it's a defined benefit, you should ask for a transfer value, you might be surprised how much you'd get. I'm in the process of transferring mine, see http://forums.contractoruk.com/accou...t-pension.html

[rl4engc]

Talk to your SIPP provider and ask them what documentation you need to transfer it. It's normally none but you will need to know their full details plus your pension account number.

Then talk to the pension provider. They should give you a transfer value, send you some forms to sign plus ask for a few other things to transfer it to the SIPP provider.

You then send them back the pension provider and if they aren't useless will take a couple weeks to transfer the pension.

Good reply thanks, I've not actually got a SIPP provider yet, so do you mean just set one up with 0 balance like you do with an ISA, before they sort out transferring from the old group one?

[SueEllen]

I transfered an occupational pension into a SIPP with Hargraves Lansdown, you will probably be asked to see an IFA which on a pot that small might not be worth it

I transferred one as the scheme was being wound up.

As it wasn't a final salary pension it just involved form filling and proving I was who I said I was.

I didn't actually have to do the transfer cos they would have dumped it in some random scheme they set up but I thought bugger looking for a lost pension in decades time.