Frozen out

Sinister

Hello all first post so go easy on me !
I have a question about my pension arrangements . I set up a top-up pension with Natwest Life so that I could retire at 50 . Anyway that has been scarpered by this 55 minimum age plus I left my job that had a final salary scheme ( which is preserved and index linked so that is ok) so the top-up was frozen too !
I have since started work again but my new employer does not have a pension scheme and I have £21000 in this top-up scheme ( which they have scrapped to new joins anyway ) although I could contribute again if I get a new pension sorted .
I am dubious as to whether it is worth continuing with this as a FSAVC or whether i would be better off transfering the value as a starter to a new personal pension that I could then contribute to until I am 55 .
Any thoughts ?

dunstonh

I am dubious as to whether it is worth continuing with this as a FSAVC

You cannot contribute to an FSAVC without having an occupational pension scheme.

whether i would be better off transfering the value as a starter to a new personal pension that I could then contribute to until I am 55 .

Almost certainly the most sensible option. However, it would depend on the transfer penalties, if any, that Natwest would charge. A transfer analysis would confirm suitability or not.

Sinister

Thanks dunstonh , it seems from looking around that FSAVC's are not in favour nowadays .
Is a transfer analysis something that an advisor would have to do or could I get the information myself?

dunstonh

Thanks dunstonh , it seems from looking around that FSAVC's are not in favour nowadays

Its a strange situation. FSAVCs for a long time were considered potential mis-sold products with in-house AVCs better. However, I find far more clients are fustrated with the limitations with in house AVCs and would have been better off with FSAVCs. Indeed, there is new thread in this section today highlighting exactly that.

With the introduction of stakeholder pensions in 2001, the AVC/FSAVC product started to be pushed down the suitability scale. PEPS and later ISAs, also pushed it further down as well. The next change in April 2006, makes them obsolete as a product for new business.

Is a transfer analysis something that an advisor would have to do or could I get the information myself?

If you know what to ask, what to look at and what to compare you can do it yourself. A full transfer analysis (TVAS) done professionally can cost at least £40 for the IFA to do it. (i.e the IFA is billed by the company doing it). In the case of an FSAVC to personal/stakeholder, you don't need a full TVAS unless you cannot get comparative projections (i.e. existing provider quotes at 5% SMPI basis but new providers quote 7% monetary growth basis - two different methods, you can't compare unless you have the software to do it. IFAs have the software and its not information available on the net).

If you are lucky, both the old and the new contracts will project at the same rates and on the same basis. However, you would need to know which new contract is best for you.

Now I could be cruel and say that as you went to Natwest Life, you clearly don't understand about investing You would never have used a bank if you did. So, getting an IFA to do a transfer analysis and recommendation and placing the business would be far superior to doing it yourself and you would end up on a very good deal. You could do it cheaper doing it yourself but you would need to know what option is currently the cheapest and which scheme is appropriate for you and where and how to invest. Some people do and there are providers that cater for them. What you need to decide is if that is you or if you need advice

Sinister

Thanks for all that info dunstonh despite the cutting remarks ! I am not as young and naive nowadays , which is why I am trying to sort out my pension arrangements properly .
I shall try to evaluate some comparisons myself and if getting baffled then take on some professional advice . I wonder if A-day will make the options more or less confusing than at the moment !