| | | Transferring To A Sipp Pension
SIPP Considerations Transferring in Charges Existing charges on current pension plan. How do they compare to a SIPP? A direct comparison via an illustration should be used to have an idea of comparable costs. Whilst many people perceive that SIPPs are a more expensive choice this may not necessarily be the case especially when compared with older pension plans. Time to retirement How close an investor is to retirement will affect how they want to either take their benefit (if they are near retirement) or how long term their investment strategy is if they are a long way from retirement Investment Objectives An investor need to address whether their existing pension planning is still relevant and still provides the structure that their portfolio requires Investment Strategy Does the investor have a different risk profile that may be better served under a SIPP? Guarantees and options Are there any existing guarantees built in with an investors current pension plans? With profit Funds Are there any penalties for transfer? Obviously this applies across the range of potential transfers but With Profits funds are particularly susceptible to adjustments on transferring out (often referred to as Market Value reductions MVA)
QROPS transfers are an alternative if you are an expat living abroad or currently in the process of planning to relocate overseas. |
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