Partial Transfer my L&G Workplace Pension to InvestEngine

Help & FAQs
1

Hi all,

I’ve just opened a SIPP with InvestEngine with the intention of transferring my current workplace pension funds over.

I assume this is called a partial transfer as I want to keep my L&G workplace pension and just transfer the funds. So starting from £0 with my L&G workplace pension.

Looking into this it looks like I can only do this if I have a workplace pension with Vanguard.

Is that really the case?

I hope you can help with this.

Many thanks

2

IE claim that the introduction of transfers-in is their top priority. Unfortunately they have been stating that for literally years. It is true that relatively recently they opened-up transfers from Vanguard but there has been no indication as to when transfers from other organisations will be permitted.

My advice is to assume that it will be at least another year until you can transfer-in your L&G workplace pension.

3

My advice is to assume you will have retired before this becomes an option.

2 Likes
4

Thanks all, that’s unfortunate.

I’m not sure what other platforms are able to do this (L&G workplace pension > SIPP) but when researching I found that Invest Engine ticked the boxes for me.

Maybe I’ll reassess in a year and if it still doesn’t do it look elsewhere.

5

I did a lot of research and decided that Freetrade was the best current for me.

T212 keep saying that they will be starting a SIPP but who knows when/if that will start.

6

@PStaveley
Morning :grinning: :wave:

According to the T212 discussion boards they are now aiming to make the SIPP available at the of the current year 2025. This has been delayed since last year.

7

@Otuama

Morning :grinning: :wave:

General guidance from HMRC states that workplace pensions can only be transferred to an “official” registered pension scheme within the UK - but could also be transferred abroad, depending on the receiving pension scheme abroad.

If you want to transfer your workplace pension from L&G to a provider in the UK … any platform offering a SIPP is automatically qualified to receive your workplace pension.

There is a good overview of platforms and pensions here:

8

I put my L&G pension into a Fidelity SIPP
Just use ETFs and the fees are capped at £7.50 a month

9

So, to be clear - I want to keep my workplace pension with L&G but transfer the current funds to IE. Assume this is called a partial transfer.

I emailed IE at the same time I posted here and they said it’s not possible but your reply suggests that it is :scream:

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10

@Otuama

your reply suggests that it is

My reply states that “any platform offering a SIPP is automatically qualified to receive your workplace pension.” however, “qualified” only means that HMRC will not block transfers between registered pension schemes in the UK.

Whether you can actually transfer your workplace pension from L&G to your chosen platform also depends on the platform to be offering this functionality already - and IE does not support transfers from other platforms at present, apart from Vanguard UK.

There are also a few things to check / consider:

  1. Can you transfer the full amount of your L&G pension or do you need to leave a minimum balance behind in order for the pension not to be closed?

My L&G pension states that there needs to be a minimum balance of £10K left in it in order for the pension to remain open under the current terms - this is important if you have better terms than the usual, by law, mandated terms of 5% employee and 3% employer contributions.

  1. How much is L&G charging as an admin fee per year in %?
  2. How much is the fund/are the funds charging per year in %?
  3. Work out the total amount charged in % and £, for instance:

Admin fee: 0.50% pa
1 Fund: 0.26% pa
Total: 0.76% pa = £7.60 per £1,000 invested - so a pension pot of £30K would cost around £228 per year.

  1. What would the charges be with any new provider?
  2. Depending on your circumstances… is account linkage between family members possible / important, does the new provider support drawdown etc. etc.
  3. Could you replicate your current portfolio with L&G easily using ETF’s, Investment Trusts or Funds? For instance my workplace pension is a world tracker consisting of Developed World, Emerging World + Bonds which can very easily be replicated using ETF’s available on each platform.

After all of that you have the following options, methinks:

  1. Leave everything as is with L&G and put money into the IE SIPP by yourself
  2. Transfer from L&G to Vanguard and then onwards into IE.
  3. Transfer to a different provider altogether - depending on your research into providers and platforms