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Move Pension from Aviva
MindTheGap
Posted: 12 September 2017 10:43:09(UTC)
#1

Joined: 12/09/2017(UTC)
Posts: 3

Hi,

I'm after a bit of advice if possible.
I currently have an Aviva Pension which was set up via my employer who matches the 4% that I pay in. I also have a SIP with Best Invest which I set up separately to pay extra lump sums into as and when I have them.

The Aviva Pension has pretty limited fund choices and fees are also higher than Best Invest so I was thinking of moving the majority of my pot from Aviva into Best Invest but obviously leaving the Aviva Pension running as my employer pays "free" money into it.
I would then propose to do this every few years to keep the majority of my Pension in the SIPP.

Are there any reasons why this is not a good idea and have others done similar?

Thanks in advance!
Ludditeme
Posted: 12 September 2017 11:52:15(UTC)
#2

Joined: 14/11/2016(UTC)
Posts: 57

Thanks: 57 times
Was thanked: 48 time(s) in 22 post(s)
Hi,

I have done (18 month intervals) this twice now, and it has worked well for me - albeit with different companies (Aegon to Interactive Investor). The charges I was paying were continually annoying me every time I looked at my statement, and the fund choice is far more comprehensive.

This is what I do:

• Get a Plan Statement for Transfer purposes from company scheme [e.g. Aegon]
• Download the receiving SIPP [ e.g. Interactive Investor] Transfer Authority.
o When filling in
o Tick CASH TRANSFER (not in-specie)
o Tick PARTIAL TRANSFER
• Write a letter to [Aegon] as below – which is sent to II with the stuff above.
• Write a letter to [Interactive Investor] saying what you are doing.

All you need is something like this:


Re Plan: xxxxx

This letter is to inform you that I would like to request a cash transfer of £x from my Aegon Pension account to my Interactive Investor SIPP.

Please note that this is a partial transfer. My Aegon account should not be closed since my employer will continue to make monthly contributions into it.

Yours sincerely,

1 user thanked Ludditeme for this post.
Peter Sm on 20/10/2017(UTC)
Tim D
Posted: 12 September 2017 13:00:34(UTC)
#3

Joined: 07/06/2017(UTC)
Posts: 195

Thanks: 719 times
Was thanked: 242 time(s) in 115 post(s)
Yes I've done this. I initiated the transfer from the SIPP end, using their paperwork for such things, but was sure to let HR/benefits people at my employer know what I was doing and that was expecting my salary and matched contributions to continue as before. I might have deliberately left a small holding or two on Aviva just to reinforce the point. Note that "in-specie" transfers are probably impossible and you'll need to transfer value as cash.

Still took 2-3 months to happen! (Although only 2 or 3 days out of the market I think). Just wish I'd done it years before I actually did. The lack of any sign of a move to post-RDR prices by Aviva was the final straw (UK index tracker for 0.7% OCF?... come on!)

About the only possible downside I can think of is you might blow the lot on some exotic risky x3 leveraged ETF that you can get on Interactive Investor that Aviva's platform would never have let you access.
MindTheGap
Posted: 12 September 2017 13:05:38(UTC)
#4

Joined: 12/09/2017(UTC)
Posts: 3

Thanks both of you for your replies - Much appreciated.

When you both did the transfers did you just ask them to sell units from across all investments to raise a certain amount of cash or specifically tell them what to sell as in X number of units from Y fund?

Thanks.
Tim D
Posted: 12 September 2017 13:55:30(UTC)
#5

Joined: 07/06/2017(UTC)
Posts: 195

Thanks: 719 times
Was thanked: 242 time(s) in 115 post(s)
In the section of the form for partial transfers (this was to ATS not iii) they had you fill out a tabulated list with two columns: "Investments to be sold" and "Please write number of shares or ‘all’ if you wish to sell your total holding". So I just listed all the investments I wanted to transfer the value (and wrote "all" for each of them), and just didn't list the one or two I was keeping there.
Ludditeme
Posted: 12 September 2017 14:06:50(UTC)
#6

Joined: 14/11/2016(UTC)
Posts: 57

Thanks: 57 times
Was thanked: 48 time(s) in 22 post(s)
In my case, Aegon wouldn't let me specify how many units were to be sold.

E.g. I may have wanted to sell out of 3 of 4 funds in my pension (or specific unit numbers).

They only allowed my to specify a figure for transfer. I did this by looking at 'today's' value, and had a bit of headroom in case the prices dipped over the period of transfer.

So, if you were taking out £50K, it may be worth choosing £48K to make sure you leave the account open. Oh, and pray that there isn't a major correction on the day!
MindTheGap
Posted: 12 September 2017 14:12:31(UTC)
#7

Joined: 12/09/2017(UTC)
Posts: 3

Thanks again both of you - Very helpful!
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