If you already have a pension, it is possible for you to
transfer assets into a Sipp. After all, many people switch insurer
when they renew their buildings and contents, or car insurance. So
why not do the same with one of your biggest assets - your
pension?
Are you currently suffering from:
Poor performance
Traditionally, personal pensions have been
managed by insurance companies and have not had a particularly good
track record in terms of fund performance or administration. With a
Sipp, you can select a far wider range of investment options.
High charges
If your personal pension is more than a few
years old, you may well be paying high annual charges, plus hefty
policy fees and other penalties. All of these charges will be
eating into your retirement pot year in, a year out.
Check the penalties
Before you consider transferring the assets
from your pension, it is essential that you contact your existing
pension provider to check whether or not by terminating your
existing pension you may incur any penalty charges or lose valuable
guarantees such as a guaranteed annuity rate.