Pensions - Transfer from company scheme to a private one

safccfas

safccfas

Winger
I know there’s been a few threads on the general subject of pensions before but wanted to know people view on a specific matter, moving your pot from a company scheme to a private one.
Was taking to a collegue at work this week who has told me there are about to do just that as the private firm (St James’) perform much better than ours (Standard Life).
Anyone done this before ? What’s the pro’s and con’s?
I assume you still stay in the private one and contribute so you get the company contributions ? And just keep transferring the money over to the new private one?
Im just at the start of looking into this so any advice or articles to read would be appreciated.
Thanks
 


safccfas said:
I know there’s been a few threads on the general subject of pensions before but wanted to know people view on a specific matter, moving your pot from a company scheme to a private one.
Was taking to a collegue at work this week who has told me there are about to do just that as the private firm (St James’) perform much better than ours (Standard Life).
Anyone done this before ? What’s the pro’s and con’s?
I assume you still stay in the private one and contribute so you get the company contributions ? And just keep transferring the money over to the new private one?
Im just at the start of looking into this so any advice or articles to read would be appreciated.
Thanks
Click to expand...
@Shirley Shammel normally gives great advice, spoken to him off here and very helpful.
 
safccfas said:
I know there’s been a few threads on the general subject of pensions before but wanted to know people view on a specific matter, moving your pot from a company scheme to a private one.
Was taking to a collegue at work this week who has told me there are about to do just that as the private firm (St James’) perform much better than ours (Standard Life).
Anyone done this before ? What’s the pro’s and con’s?
I assume you still stay in the private one and contribute so you get the company contributions ? And just keep transferring the money over to the new private one?
Im just at the start of looking into this so any advice or articles to read would be appreciated.
Thanks
Click to expand...
Only consider it if your company agrees to pay their contribution to SJP. The majority probably wouldn’t as it’s an admin task to do. That’s not the only reason though, loads of considerations.
 
Do some research into SJP don't think they have the best reputation especially concerning charges. Can you not just change which fund you're invested in with Standard life to a more adventurous one if you want better/higher returns? Might want to tell your mate to do the same
 
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Surely unless you are close to retirement and/or have a massive pension pot then the short term performance of another provide will be pretty irrelevant and not worth doing.

What’s the situation with your employer’s contributions as well?
 
safccfas said:
I know there’s been a few threads on the general subject of pensions before but wanted to know people view on a specific matter, moving your pot from a company scheme to a private one.
Was taking to a collegue at work this week who has told me there are about to do just that as the private firm (St James’) perform much better than ours (Standard Life).
Anyone done this before ? What’s the pro’s and con’s?
I assume you still stay in the private one and contribute so you get the company contributions ? And just keep transferring the money over to the new private one?
Im just at the start of looking into this so any advice or articles to read would be appreciated.
Thanks
Click to expand...
You should take Independent Financial Advice, never listen to people at work. I’m led to believe that St James Place ( that should put you straight off ) still pays commission to their sales people. The financial industry does not in general pay any commission to advisers for pension and investment advice. How the regulators allow St James Place is beyond me.
Millions of pounds have been paid out over the years in compensation to company scheme members who were ill advised and lost out. Look for an IFA in your area.
 
SJP have your eyes out for fees, and then come back to fuck the sockets. Not just the up front fees either, there are layers of fees underneath that you will struggle to see (especially once they have your eyes).

Your existing scheme may have poor returns and a move may make sense for you (depending on any protections and benefits you would be giving up), but you'll give yourself at least a 2% head start on returns by avoiding SJP.
 
I work for myself via a limited company. I’ve been accused of only doing that to avoid paying as much tax. However that is not true. The clients I have worked with would (until April this year) only do such business with limited companies. Also I pay a lot of tax both from my company and also on my income that I draw from the company. Additionally, for the last ten years my main client has been a company in Germany so I am in effect an exporter bringing money from another country into our own, and 20% of profits from that money goes to HMRC before they get even more from the income tax that I pay them.

Yes the hourly rage is higher than working PAYE but I also have to factor in travel costs, insurances, several unpaid days a year off for my voluntary roles and holiday/sickness pay - if I don’t work I don’t get paid.

One of the advantages of working in such a way is that I can pay company contributions into a SIPP. The majority of the money I have taken from the company hasn’t been salary or dividends but pension payments that are now locked in a SIPP. That particular type of pension will also go to my two boys in cash (tax free) if I die before drawing it, or as a lot for them to continue to take from it if I die once I have started drawing from it.

I’m planning to use the 25% tax-free lump sum at in my late 50s to pay off the interest-only portion of my mortgage, then (semi-)retire up in Northumberland.

When I switched over to the SIPP I combined all of my other company pensions from various companies I had worked for into the single SIPP. The IFA had to look very carefully at the Pfizer pension to see if it was better to leave as is, but in the end that one went in too.

So for the past 10 years I have been well behind my peers in terms of what I have in my wallet to spend. It has been an extremely modest living, verging on being quite poor. However I should be able to retire in my 50s on a decent income and reap the rewards then if I last that long (or my kids can if I don’t).
 
Thanks for the recommendations.

As @Longy said it’s highly unlikely the employer will pay to your preferred scheme unless you work for an umbrella company (typically if this is the case you’d have been effected by the recent IR35 rules and would previously have been a contractor). If not and you are in your current workplace arrangement it’s going to be difficult to get an adviser to facilitate this type of transfer while you are still an active member.
 
safccfas said:
I know there’s been a few threads on the general subject of pensions before but wanted to know people view on a specific matter, moving your pot from a company scheme to a private one.
Was taking to a collegue at work this week who has told me there are about to do just that as the private firm (St James’) perform much better than ours (Standard Life).
Anyone done this before ? What’s the pro’s and con’s?
I assume you still stay in the private one and contribute so you get the company contributions ? And just keep transferring the money over to the new private one?
Im just at the start of looking into this so any advice or articles to read would be appreciated.
Thanks
Click to expand...

Dont know much about them but SJP get absolute dogs abuse over on the MSE forum mind. Fees are sky high by all accounts
 

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