100% with profits funds - no good anymore?

dunstonh

Ummmm ok. Well the IFA who set up the Standard Life WP pension, has never advised me to change funds.

Compliance issues here. They would have to re-asses your risk profile every time and make a formal recommendation based on that new risk profile. They would also have to issue a report outlining that recommendation.

So, advising someone first where you are not confident that their risk profile is the same can be quite risky to the IFA.

Also, although charges/commission get mentioned often, the amount paid on pensions is relatively small and your renewal commission, if any, may not be enough to justify a regular report and recommendation. After all, these things cost money and if there is not enough commission to pay for it, you are unlikely to get it.

In fact I don't think he has offered me any advice for years unless I phone up and specifically ask them a question.

That is probably the service level you have agreed.

So should I seek their advice? What would be the advantages in keeping the provider but changing the funds rather then switching completely?

Changing out of WP before the demutualization would seem to be a little on the foolish side, depending on your qualification, age of membership and size of pension.

You've already paid a load of upfront setup charges on the Standard Life pension.Are you sure you're not going to be paying a second lot of upfront charges for the new pension?

Not many pensions charge an upfront charge any more. Those that do can often have lower annual charges so over time, these may work out cheaper than a stakeholder pension.

The only reason the IFA wants you to transfer is so he earns commission.

Not the only reason. Failing to act on information you know can be considered bad advice. So, the IFA should recommend changes things where appropriate. Whether you act upon it or not is then up to you. However, the IFA has done their job.

Why pay extra charges if you can obtain the same result by not paying them?

Because a fund recommendation could probably done for free with the servicing IFA and have the consumer protection that goes with it. Doing it yourself would cost no more or no less but give you no consumer protection.

Fidelity Special Sits (for instance) is at no 4230.There are numerous other good external funds on offer.

With research companies sending out bulletins saying that they can no longer recommend Fid Spec Sits given its current situation, it could be considered foolish to move into a fund that is in such an unknown situation. This only just went out so your advisor may have made the recommendation before reading it. Or he may not subscribe to the same research. Or he may consider that just because the future is unknown with this fund (with the fund manager changing and the fund splitting), it is still worth a punt.

Now, your IFA probably won't offer option 1 (as they are dealing with you as part of a company pension scheme - they have no incentive). But that doesn't mean you can't repension via another IFA/broker, if that is the right thing for you to do. 'Thanks for the advice company pension IFA, but I'll take my business to a discounter if you don't mind!'
The same applies to reason 2.

If its a group company scheme, then you cannot take it to a discount IFA. The contract to provide the pension is between the IFA and the company not you.

In reason 3, mainly what I am saying is you should question why you're being advised to transfer it all into a Special Situations fund (this type of fund has performed well in the past, but will it continue to?).

Not sure he meant all. I would certainly consider changing IFA if he comes out with a single fund solution like that (unless you have a small fund).

PS: Not all SIPPs are expensive. Some have no setup, transaction or annual charges...

With providers launching new SIPPs in February onwards and with the insured/hybrid SIPPs to come, considering transferring into any SIPP at this time is probably not a good idea if your only investment is going to be fund based.

Darryl

dunstonh wrote:

If its a group company scheme, then you cannot take it to a discount IFA. The contract to provide the pension is between the IFA and the company not you.

If you have left the company to which the group scheme relates, you can transfer it to a discount IFA - I have done so myself.

Darryl.

dunstonh

Sorry, I was assuming that the OP was still employed with the same company. If not, then Darryl is correct.

mariegriffiths

Martin's repensioning guide seems to have disappeared.
I want to move my NPI SHP now as they didn't bother to tell me thet they have moved my fund from property to deposit.

EdInvestor

mariegriffiths wrote:

Martin's repensioning guide seems to have disappeared.
I want to move my NPI SHP now as they didn't bother to tell me thet they have moved my fund from property to deposit.

Really? Why did they do that? Switches should only be made by you or your advisor.

dunstonh

NPI sold off all their property and it only held cash. So, it was a property fund with 100% cash. It wasnt a switch.

http://www.npi.co.uk/npi/npipb.nsf/Content/news-article-propertyupdate

Although I didnt think the NPI Property fund was available in the stakeholder range.

EdInvestor

The second is that the funds have been invested in cash, rather than property, since late 2003 and property has, generally, out-performed cash over that period.

You're telling me it has.

I would write to NPI and demand compensation if they didn't tell you they were selling the property in the fund in advance.

What a disgrace :mad: