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Thread: Aviva Pension advice - Charges AMC's

  1. #1

    Aviva Pension advice - Charges AMC's

    Hi all,
    My new career puts new joiners into their DC Pension managed by Capita, but investing in Aviva funds.
    There are 240 but many have 2% AMC charges which is extortionate.
    I have 240 k to split between 4-5 funds, plus then put in 40k each year for next 5 years.
    Any help or a few fund names within the Aviva portfolio would really help?
    Please offer any advice but 2% charges would be taking 4-5 thousand pounds out each year, not too bad if the funds are growing at12 and 18% a year!
    .. Help?.

  2. #2
    2% - are you sure - that sounds like a joke.

    When you say you have 240k to split between some funds, are you moving your existing SIPP into the Aviva pension or is that some sort of starting bonus with your company?

    What i do - because again i don't like the platform my company pays into, is once a year fill in a transfer form and remove the entire balance of the SIPP into my HL SIPP. Its cheaper than my company platform.

    With regard to 2% - that's a joke and would demand a better alternative. I also thought there was a cap on AMC fees when companies pay into employee pensions, well at least the pensions default fund....

  3. #3
    The 2% charge will probably only apply to the funds not managed by Aviva. Even so this seems rather high. Are there any large fund rebates or are any other reduction in charges applied. What do Aviva's own funds cost?

    Have you considered professional advice from an IFA on your options and where to invest the money. You do not need to transfer your existing funds to Aviva for example. With the new pension regulations there are now far more options available to you in terms of planning for your retirement. Have you considered carry forward contribution etc.

    If you will be paying 2% with no advice this is ridiculous.

    Even on a decent platform you could probably get total ongoing charges of around 1.5% for active funds or less than 1% for passive tracker funds this is even including an ongoing adviser fee of 0.5%.

    For your records I am an IFA so my reply may not be impartial.

  4. #4
    If it is 2% rather than 0.2%, you are on a hiding to nothing on charges.

    I would want to take any realistic and practical steps to move the money elsewhere, all other things being equal.

  5. #5
    You probably know that the lights are flashing danger, wealth warning.

    Can you clarify the various pensions you already have and the new employers scheme details.

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