All with profits funds 'add' any bonuses upon maturity, transfer, death....
Not an attempt to encourage you to transfer, simply how the figures are expressed. The annual reversionary bonus is included in the fund value, terminal bonus varies from year to year so can only be stated when you ask for figures.
You need to check the current policy details, what bonuses have been paid (lots have cut these drastically), are there guaranteed annuity rates (current rates are approx 5%, some policies have contractual rates in double figures. The longer there is until retirement the longer you have to reap the rewards of lower fees, possibly better performance.
Longer term you might be better of transferring to a SIPP, but just check you're not giving up a good thing.
Sheep get sheared .
Sent from my iPad using TZ-UK mobile app
This just came in from Vanguard:
"Hello,
We are excited to let you know that the Vanguard Personal Pension, our new low-cost SIPP,*has launched today.
The Vanguard Personal Pension is now available to those who are building up (accumulating) their pension savings. Drawdown capabilities for those who want to take payments from their pension will be added in due course.
The Vanguard Personal Pension is the lowest-cost SIPP on the market for the average British pension holder, according to independent research by Platforum1.
Setting up a SIPP with us takes just a few minutes and is easy to manage. You can start a new pension or transfer existing pensions to us.
*
The key facts
Low account fee of just 0.15% a year capped at £375. The cap applies across*all*accounts in an investors’ name on the Vanguard Personal Investor platform, including the SIPP, ISA, and general account.
Invest from just £100 a month or with an initial lump sum of £500.
Access to 77 high-quality, low-cost, broadly diversified funds and exchange traded funds (ETFs), including Vanguard’s Target Retirement Fund and LifeStrategy ranges.
No hidden investing charges."
And so ends the advert.
Got that email too, gonna sign up the kiddies.
Max of £375 across all funds held there is a good bonus too. Most places treat SIPP and ISA as separate.
Would be paying £1125 on HL on 250k, and if you have 250k each in SIPP and ISA you'd be paying £2250 so it's an amazing saving.
Note the .15% is the account charge, so it’s slightly misleading as there are still fund charges to pay so total charges will be .40-44% depending on funds. Lifestrategy funds are 0.41% in total.
Still good value though
I was comparing account charge to account charge, sorry should have been clearer!