Are there any disadvantages to transferring my pension?
05 May 2021
Question by Joy
I am over retirement age and have a pension pot with Standard Life which I paid into as FAVC when I was employed by a local authority.
I am wondering whether it is worth moving the pot to Pension Bee because I am interested in "sustainable" investing and don't like the idea of my hard earned money being used to fund things I don't agree with!
Are there any disadvantages to moving the pension at such a late stage?
I am not needing to access the money in the near future.
Answered by Chris Hill
Most FSAVC accounts for Local Government employees were completely separate arrangements and if you have already taken your main Local Government Pension Scheme, it is likely that there would not be a disadvantage in moving it. It would be worth checking how the pension is invested because many of these pensions were invested in with profits funds, which can sometimes have a market value reduction applied to them if you are switching out of the fund at a time when the performance of the underlying investments has been poor. Most FSAVC pension contracts had an end date of age 75, after which the options available became severely reduced.
Sustainable investing or ESG investing has had a phenomenal level of interest over the last 5-10 years and there are now more ways to access these strategies than ever before.
Chris is a Director at WBW Chartered Financial Planners and winner of Certified Financial Planner of the Year 2019. He has a real passion for helping people understand their money and what it can do to help them. This has led him to working with people for many walks of life.