Pensions - Transfer from company scheme to a private one

42 said:
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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Depends who you’re comparing it to mate. On the cheaper side compared to Wealth Management Companies. Similar compared to IFAs. Dearer compared to self execution or auto enrolment schemes (as expected where you don’t have a financial adviser).

Due to having the highest market share, always there to be shot at, I’m an adviser there so become frustrated with some of misconceptions that I am presented with, based on the likes of MSE forums. It was a similar situation at a large bank I worked for previously.
 


Longy said:
Depends who you’re comparing it to mate. On the cheaper side compared to Wealth Management Companies. Similar compared to IFAs. Dearer compared to self execution or auto enrolment schemes (as expected where you don’t have a financial adviser).

Due to having the highest market share, always there to be shot at, I’m an adviser there so become frustrated with some of misconceptions that I am presented with, based on the likes of MSE forums. It was a similar situation at a large bank I worked for previously.
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I think there's a general dislike to anyone who calls themselves 'wealth management'
 
I've moved old pots, was quite nerve wracking but all went ok. my current one as I get a ten percent bump on top of my 5 the advice was keep doing that one anyway
 
Question... can you transfer a lump sum from your work pension into a private one but keep your work pension open and almost start again with it so you get the wok contributions still?
 
safccfas said:
Question... can you transfer a lump sum from your work pension into a private one but keep your work pension open and almost start again with it so you get the wok contributions still?
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Sometimes aye. But best to check with the scheme provider. There’ll never be a definitive answer on these threads because there’s so many different products, providers & everyone’s circumstances vary.
 
The difference is usually a company pension scheme is quite restrictive in terms of access to the range of funds it can invest in, so generally will have lower growth opportunity.

awe managed to get a fairly good one for our employees with royal London, but a lot of employers just go with the easiest/cheapest options like people’s pension etc.

With a private pension, depending on the size of your fund, you can have it managed by your FA and be risk profiled to invest in riskier/higher yielding mix of investments. The downside is when something happens like coronavirus, then fund value plummets, as the funds it is invested in reduce in value, but mine has still shown a growth of over 10% a year. The funds invested in are changed regularly by my FA depending on performance.
 
safccfas said:
Question... can you transfer a lump sum from your work pension into a private one but keep your work pension open and almost start again with it so you get the wok contributions still?
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Not likely to be a great idea. You’d be better off asking if you can have your employers contributions paid in to a private, and opt out of work scheme.
 
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
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I stayed in a company scheme that was ‘defined contribution’ (ie final salary) and even though I left in the mid 90s it provides the bulk of my non state pension income.

Later: After 5 years in a public sector organisation pension scheme i became eligible to transfer to their defined contribution from defined benefit. I stayed on the latter because the payments are based on a calculation of my average salary. The former was transferred and consolidated into a larger pot wherein other similar pensions had been transferred.

In short: it depends what type of scheme you’re in.
 
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George Kaplan said:
I stayed in a company scheme that was ‘defined contribution’ (ie final salary) and even though I left in the mid 90s it provides the bulk of my non state pension income.

Later: After 5 years in a public sector organisation pension scheme i became eligible to transfer to their defined contribution from defined benefit. I stayed on the latter because the payments are based on a calculation of my average salary. The former was transferred and consolidated into a larger pot wherein other similar pensions had been transferred.

In short: it depends what type of scheme you’re in.
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You have DC & DB the wrong way round
 
SJP charge eye watering fees, only recommend funds on which they get a kick back and will not provide any kind of transparency on how much they are ripping you off for.

I play golf with an SJP franchisee. He knows not to try and recruit me as a donor to his personal wealth management. His first concern is his own latest car or new house, not his clients money.
 
Slatz63 said:
SJP charge eye watering fees, only recommend funds on which they get a kick back and will not provide any kind of transparency on how much they are ripping you off for.

I play golf with an SJP franchisee. He knows not to try and recruit me as a donor to his personal wealth management. His first concern is his own latest car or new house, not his clients money.
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See post 21 mate. This is a perfect example of the type of thing people saying stuff they don’t really understand

SJP will struggle to get a kick back on any funds as they produce their own :lol:

It sounds like the problem is your mate’s morals & attitude, not the products or charges as they’re quite simple.
 
Longy said:
See post 21 mate. This is a perfect example of the type of thing people saying stuff they don’t really understand

SJP will struggle to get a kick back on any funds as they produce their own :lol:

It sounds like the problem is your mate’s morals & attitude, not the products or charges as they’re quite simple.
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This just isn’t the case. The lack of transparency in SJPs charging structure is exactly why the financial services industry has garnered an appalling reputation over the years.
 
Old Prestonian said:
This just isn’t the case. The lack of transparency in SJPs charging structure is exactly why the financial services industry has garnered an appalling reputation over the years.
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Pensions specifically, it’s 1.5% + fund manager charges, usually approx 0.5%. Circa 2%, give or take a hundredth of a decimal point depending on the funds within the portfolio, but usually fractionally lower than the 2%. It’s that simple.

Compare it to a holiday, various parts make up the charge, flight, accommodation, various taxes, luggage, what’s important is the end figure.

Again, post #21, it all depends on what you’re after. Self execution, will be cheaper. I have 3 different platforms, all charge differently from each other.

It’s all about simply what you’re being charged at the end & what your net position will be after charges, will you have more or less in your pension. @Shirley Shammel put a cracking post on the other day about a fella being chuffed he avoided advice fees to return 3% last year when a structured portfolio of funds would have done anywhere between 15%-25% after charges.
 
Longy said:
See post 21 mate. This is a perfect example of the type of thing people saying stuff they don’t really understand

SJP will struggle to get a kick back on any funds as they produce their own :lol:

It sounds like the problem is your mate’s morals & attitude, not the products or charges as they’re quite simple.
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Thanks for your input. Really pleased you know how sophisticated an investor I am.

I understand pensions and investments very well.

I think, as do lots of other people, that SJP are very expensive for what you get. They hide their charging structures in the small print. If you can buy into their offering for less than 5% total you heve been very selective in the funds you've chosen.
 
Longy said:
Pensions specifically, it’s 1.5% + fund manager charges, usually approx 0.5%. Circa 2%, give or take a hundredth of a decimal point depending on the funds within the portfolio, but usually fractionally lower than the 2%. It’s that simple.

Compare it to a holiday, various parts make up the charge, flight, accommodation, various taxes, luggage, what’s important is the end figure.

Again, post #21, it all depends on what you’re after. Self execution, will be cheaper. I have 3 different platforms, all charge differently from each other.

It’s all about simply what you’re being charged at the end & what your net position will be after charges, will you have more or less in your pension. @Shirley Shammel put a cracking post on the other day about a fella being chuffed he avoided advice fees to return 3% last year when a structured portfolio of funds would have done anywhere between 15%-25% after charges.
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Can you separate the product cost, advice cost and fund manager cost?

Can you tell a client that SJP pay the fund manager the exact cost of the fund and receive no part of the cost of a fund?

Are the products easy in/easy out with no transfer/surrender charges?

The products are not transparent and anything but simple (as you stated).

P.S. I've worked in the independent financial advice sector for 35 years so I don't need the SJP holiday analogy horseshite.
 
Slatz63 said:
Thanks for your input. Really pleased you know how sophisticated an investor I am.

I understand pensions and investments very well.

I think, as do lots of other people, that SJP are very expensive for what you get. They hide their charging structures in the small print. If you can buy into their offering for less than 5% total you heve been very selective in the funds you've chosen.
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I haven’t commented on your sophistication mate, or your understanding of investments. Just that it’s simple. Pensions are roughly 2% per year with no buy in & they use SJP funds, they’re not whole of market.
 

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