My previous employer enrolled me onto Aegon Retirement Choices (ARC) pension contributions. I’ve come to know that Aegon also have a list of Islamic funds to switch that money/invest in.
There’s a few different options. Maybe someone’s already done a historical analysis on the best one to transfer into.
What’s the difference between ‘HSBC Islamic Global Equity Index Fund IC’ and ‘HSBC Islamic Global equity index fund BD’?
Has anyone looked into Pensionbee/Wahed? What’s your thoughts compared to i.e. Aegon?
The “IC” share class is the accumulating version whereas “BD” is the distribution share class. For pension purposes, IC should work better as any dividends will be invested in the accumulation version.
Can you please double-check the charge you are incurring? Looking at the Aegeon website, the total charge for investing in HSBC global Islamic index fund is insanely high @ 1.35%. If this is correct and if you do want to invest in this fund, a cheaper option could be to open a SIIP with AJ bell where you will have a total charge of about 0.75% (0.5% relating to HSBC fund charges + 0.25% AJ bell platform fee + £1.5 minor transaction charge).
Pensionbee is showing 0.95% total charge for the same fund
Wahed’s: SIIP has an account opening fee of £200 and an annual charge of £300 which will breakeven to AJbells’ platform charge of 0.25% if your investment amount is greater than £120,000.
I have given you the pointers but please DO CHECK yourself the above numbers by going to their respective websites.
May Allah Bless you.
I need to do a deeper dive for Wahed’s SIIP and will update the post when i can
JazakAllah for your detailed response Zeeshan. My pension amount so far (only been making contributions for less than 2 years) is around £4,700 and I’ve recently left the company.
I spoke to Aegon and I can only switch the sum into a fund and not withdraw until 55. Does this mean I can still open a SIPP with AJ Bell or Wahed and move that sum into the HSBC IC fund via their platforms?
If it were you, would you go for AJ Bell or Wahed? I don’t entirely know what benefits Pensionbee provides over the other two.
Aegon is right in saying that you cant start drawing until you reach the minimum retirement age of 55 which I believe is about to be changed to 57 by the government. However, that does not mean that you cannot “transfer” to another pension provider. If let’s say you decide to open a SIPP with AJ bell, give them a call and they will kick off the transfer process for you without you running around.
I cannot advise you as I am not an IFA and don’t know your individual circumstances.
All I can say is that HSBC Islamic Global Equity Index is a very popular choice as a pension fund by even the mainstream pension providers who probably only have one shariah-compliant option available e.g. Pensionbee.
What I would say is that you should always try to keep your fees at a minimum. You may want to read this thread Comparing Platform Fees
Hope this helps
May Allah guide you and remember me in your prayers
I would personally invest with the cheapest reputable platform and for this particular fund (HSBC Islamic Global Islamic Fund “IC”), AJ bell appears to be the cheapest from the options I have seen. I must say that you should do your due diligence as I don’t know your situation.