Legal & General (L&G) is one of the pillars of the UK’s financial sector. With a history spanning nearly two centuries, they manage trillions in assets and provide retirement solutions for millions of workers across the country.
Because L&G is a default provider for many large corporate workplace schemes, it is very common to have an L&G pot without ever having actively chosen it. This makes a periodic review essential to ensure that this choice aligns with your specific retirement dreams.
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Our independent financial advisers have a deep working relationship with pension providers across the UK, including Legal and General.
Whether you want to transfer your pension to Legal and General or have an existing pension with then that you want to get the most out of, we can help.
The IFA's we work with can provide independent advice about pension transfers, reviews, drawdown, annuities and much more. Book your free initial consultation with them below:
Who is Legal & General?
Legal & General is a FTSE 100 company known for its financial stability and massive scale. In the world of pensions, they are a dominant force in Workplace Savings and Annuities. They are often praised for their competitive pricing on large schemes and their award-onward ‘MyAccount’ digital platform, which provides a clear view of your savings.
Legal & General Pension Products
L&G offers several paths for retirement savers, primarily divided into workplace and individual options:
1. WorkSave Pension (Workplace)
This is L&G’s flagship workplace pension product. If your employer uses L&G, you are likely in a WorkSave scheme. It is highly flexible, allowing for employer contributions, salary sacrifice, and a wide range of investment choices beyond the default fund.
2. Legal & General Personal Pension
For those who are self-employed or looking to consolidate old pension pots independently of an employer. It offers a curated selection of L&G’s own Multi-Index funds, which are designed to keep costs low while managing risk.
3. Pension Drawdown
If you are nearing retirement, L&G offers Investment Pathways for drawdown. This allows you to keep your money invested while taking a flexible income. Their drawdown fees are typically structured as a percentage of your pot (often between 0.4% and 0.6% depending on the pathway).
Fees and Charges
L&G is generally regarded as a low-cost provider, particularly for their passive investment funds.
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Annual Management Charge (AMC): For many workplace schemes, this is capped or negotiated at a low rate (often around 0.30% to 0.50%)
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Fund Management Charges (FMC): These vary by fund. Passive tracker funds can be as low as 0.08%, while specialist or actively managed funds can exceed 1.00%
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No Small Pot Monthly Fees: Unlike some providers (like NOW: Pensions), L&G typically does not charge a flat monthly admin fee, making them a safer home for smaller, "frozen" pots
Reviewing Your Legal & General Pension
If you have an existing L&G pension, a professional review is the best way to determine if it’s still the right home for your money. Key areas to check include:
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Investment Lifestyling: L&G’s default funds often use lifestyling, which automatically moves your money into lower-risk assets as you approach your target retirement date
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Performance vs. Peers: While L&G trackers are efficient, they may not outperform more dynamic funds available through a SIPP or other providers
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Legacy Scheme Fees: If you have an L&G pension from the 90s or early 2000s, you might be on an older fee structure that is significantly more expensive than their modern offerings
Transferring To and From Legal & General
Transferring In
L&G makes it very simple to consolidate other pensions into your current plan via their app or website. They use the Origo pension transfer system, which is electronic and usually takes just a few weeks. They do not typically charge a fee to accept transfers.
Transferring Out
You are free to transfer your L&G pension to another provider at any time. L&G generally does not charge exit fees on their modern WorkSave or Personal Pension plans. However, you should always check for Protected Tax-Free Cash or Protected Retirement Ages before leaving, as these benefits can be lost upon transfer.
How Our IFA Service Can Help
At Money Help Desk, we connect you with Independent Financial Advisers (IFAs) who can provide an objective, third-party look at your Legal & General holdings.
Our IFAs provide:
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Scheme Comparison: We compare the specific terms of your employer’s L&G scheme against the wider market to see if you could get better features or lower costs elsewhere
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Consolidation Advice: We help you decide whether to move old pots into L&G or move your L&G pot into a more flexible SIPP
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Retirement Planning: We look at your total pension puzzle, including State Pension and other assets, to create a roadmap for your desired retirement income
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Risk Alignment: Ensuring your L&G fund choice actually matches your current appetite for risk
Get started here to speak with an IFA for a comprehensive review of your Legal & General pension.