Transferring Balance From Company Money Purchase Pension Scheme To Hl Sipp Index Fund

[Si1]

Dear All – would appreciate some advice from those with professional or similar insight – I won't hold you to anything or blame anyone!

Basically, I am considering transferring an old company pension scheme from a previous employer out to a lower charging SIPP. I am not, and cannot, pay into this old scheme any more, so I do not need to stay in it to benefit from employer contributions etc.

It is a Prudential Group Pension Plan. The main holding is the UK FTSE index fund at 0.75% AMC. I am considering transferring the balance to Hargreaves Lansdown SIPP – not for the pricey managed funds – but for the institutional HSBC UK index fund at 0.25% AMC which tracks just as well as the pru fund. This is quite a considerable saving. I already have a balance in a HL SIPP that I will be transferring into, so future transfer costs FROM the HL SIPP are already baked in, this is not a consideration.

Furthermore, according to the Prudential literature from the company scheme, this is more or less a stakeholder pension, with the caveat it also has a with profits fund available, but importantly it has no transferring out costs. None of the charges or funds available with this, with the caveat of a with profits fund that I don't use, look exceptionally cheap compared to what you can get with a discounted rate stakeholder pension (cheaper) or the institutional HSBC index fund in the SIPP I want to transfer to.

Basically, I cannot see any strong caveats to doing this transfer. Whilst I will take some free (commission free properly independent) financial advice from my company regarding this, I also want to be forewarned before I speak with them:

Any pension experts out there – are there other things I should consider when thinking about this transfer? Anything I have missed?