Partial Transfer my L&G Workplace Pension to InvestEngine

Help & FAQs
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