Quote Originally Posted by T1ckT0ck View Post
I have sorted my pension out into HL sipp thanks to this forum and they are doing pretty well.

Now the wifes...

Does anyone have any advice on what to look for in an older Sun Life (now Aviva) with profits fund when determining whether to move it.

Wifes policy. It’s a dormant policy from ‘97. no contributions being made. Value around 35k. Five years from 55. 1% fee. Not sure on fund fees (can’t login).

Her last statement shows fund value of 35k buts goes on to states a transfer value of 44k with the paragraph ...

...“” this is how much the plan would have been worth if you had moved it to another provider, it’s different from the fund value because it includes an exit charge £468 and a final bonus of £8857.””..

Does this mean they are encouraging her to transfer it by showing any bonus applied to date? Seems odd wording, didn’t think a transfer value would be more than fund value.


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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.