Pension Pot?

EdInvestor

You could a) surrender the policy and pay off your debt/ further overpay the mortgage/both of these plus start a cash fund.

Or you could switch into different funds (ask which ones and whether there's a fee.)

Or you could do nothing.

It's the people who do nothing who suddenly find out at the age of around 55 or 60 that their pension funds are about half the size they expected and they will have a low standard of living in retirment.

Then they complain.Meanwhile the people who sold them the policy and the banks and insurance companies have been laughing all the way to the bank.

Apathy and inertia are the saver's worst enemy. You have been warned.

RichardS

I didn't realise I was able to switch funds. They don't give that as an option on their "red letter" when they list the things I could do to offset the shortfall?

RichardS

So would an IFA help me look at the funds available to me with Countrywide just like they would help me chose funds with Standard Life for my pension??

RichardS

On the subject of IFA's - whats the best way of finding one?

dunstonh

Switching funds can be a valid option if you intend to keep saving but want increased potential. It depends on whether keeping the endowment itself is still good value or not.

For example, a unit linked endowment would often pay all the charges in the first couple of years and then get 100% allocation (or higher in some cases) for the remainder of the term. Some get a higher allocation than that, say 105% after 10 or 15 years. This can make them cheaper than buying funds in an ISA. However, there are those endowments that make charges all through the term and these could be more expensive. A 4, 6& 8% projection on the endowment could be compared against a regular savings OEIC premium minus cost of replacement life cover. That would give you a true comparison of which option is best.

So would an IFA help me look at the funds available to me with Countrywide just like they would help me chose funds with Standard Life for my pension??

Its exactly the same principle.

On the subject of IFA's - whats the best way of finding one?

Finding one is easy. There is an online database which covers 90% of all IFAs at www.unbiased.co.uk . Another way of finding a good one is word of mouth from friends or family. Avoid tied agents, salesforce IFAs and multi-tied agents.