Hi
Would I be better off transfering my current SIPP into Vanguard and then transfer into IE? Or continue to wait for the roll-out of Transfers -in?
Many thanks
Hello!
Unfortunately, at the moment, we are unable to specify the exact date when other providers will be added to the list, as we don’t want to mislead you by providing inaccurate information. However, you are welcome to transfer your SIPP from Vanguard to us at any time!
@Gandalf
Well… there are a number of things to consider, methinks.
- Time needed for the transfers to take place.
This is what Vanguard currently says about incoming pension transfers - 1-10 weeks but “sometimes” longer - this is pretty vague and open to interpretation. Any time you were to ask they would advise that it “is in progress” but not give a date - same as IE and every other platform.
You also have to take into account that it will take time for the transfer from Vanguard to IE. Going by what can be seen on these 'ere boards - speed varies a lot. Again, no date for transfer completion will be given, methinks. But… if we go by the same timeframe (1-10 weeks) and assume the longest mentioned period for each transfer then you could be looking at 20 weeks! And this is time out of the market meaning you’d be missing out on any dividends / capital growth in the meantime. Don’t know if / how much this is important for you.
For the amount of time your transfer from Vanguard to IE takes place you may have to pay account fees to Vanguard.
Pension value less than ÂŁ32K - ÂŁ4/month fee
Pension value more than ÂŁ32K - 0.15% of portfolio value per year
The transfer from Vanguard to IE itself doesn’t cost any money though.
- Time needed to be with Vanguard
There is no such requirement that you would have to be with Vanguard for x days/weeks/months before requesting a transfer.
So, you could request a transfer within, let’s say, a few days after your transfer from your current platform has gone through - unless Vanguard advises differently. If asked… as reason you would give that the SIPP with IE is free of any charges.
- Fees
There are no fees to transfer out of Vanguard to another platform / provider. There may be an account fee charged for the time you’re a customer of Vanguard as above - but it looks as if this fee only applies to invested money - not to money purely held as cash.
You would need to check which, if any, fees your current platform would charge to transfer your portfolio in specie or cash. Please take into account that Vanguard only offers its own ETF’s / Funds so if your holdings currently are not in Vanguard products then everything would be sold first and then transferred in cash. Please also take into account that you still may have to continue paying admin fees to your current platform for the amount of time you transfer takes place.
- Anything else
There is also the general question to consider as to what amount of money your current platform is charging right now to handle your pension.
Based on this amount and your portfolio value - you may well decide to not transfer your portfolio to Vanguard and then to IE right now but rather to wait until the transfer capabilities of IE have improved to the point that this transfers can be done directly from your current platform.