Advice on setting up my own private pension please?
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I have been with AJ Bell sipp for 10 years now and have generally had no problems so can recommend. They did change their charges in 2016 but it worked out OK for me as I had moved to drawdown and I just pay £25 p.a. for a one-off payment.
The ongoing platform charges would be 0.25% and then the Vanguard fund charges so it should be less than half the charges you are paying with SL and no more expensive than the ~0.5% nest charges. (I am not sure where the 3x more comes from??)
Is drawback when you use the money in the pot as and when you need it?
During my research I was thinking about just leaving it all in Vanguard LS 60, as that seems quite easy for the time being.
I did phone up Standard Life and they did say I could transfer from a group pension into a personal pension but when i received the paper work it shown group pension with a higher rate. I then decided to cancel because it was still a group pension.0 -
Drawdown is when you decide to take benefits from your pension and is a common alternative to taking an annuity.Is drawback when you use the money in the pot as and when you need it?
I use flexi-drawdown which means I use my pension pot like a savings account and just take one-off withdrawals as and when required - currently once per year. The investments remain in Vanguard Lifestrategy 60 and have grown by an average of 10% each year over the past 6 years.0 -
Does that include the underlying fund charges? Also you do need to include the 1.8% fee deducted from each contribution?
0.3% is fund/product combined.
There is a 1.8% initial fee but that is quickly recouped by the lower ongoing charge.I did phone up Standard Life and they did say I could transfer from a group pension into a personal pension but when i received the paper work it shown group pension with a higher rate. I then decided to cancel because it was still a group pension.
Your charges are not allowed to increase when you cease to be employed by the employer linked to the group scheme. SL can convert your group scheme to an individual one (not that it really makes any difference). However, if you phone their sales centre, they may try and transfer you to one of their other schemes. The charges on those could be lower or higher.The investments remain in Vanguard Lifestrategy 60 and have grown by an average of 10% each year over the past 6 years.
Which is a period of sustained growth and no real volatility. So, you would expect the long term average to be much lower than that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
If this 1.8% is deducted from each monthly contribution, it cannot be 'quickly recouped' and therefore adds to the overall cost of NEST.There is a 1.8% initial fee but that is quickly recouped by the lower ongoing charge.0
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