Jump to content
House Price Crash Forum

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

Recommended Posts

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?

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 440 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.