My Pension- What does this mean?

LittleWoman_3

margaretclare wrote:

Abbey equity pension fund not doing very well??

My Friends Provident stakeholder is doing very nicely thank you now that the FTSE is moving up again. I check it daily online and it's a 'feel-good'.

Aunty Margaret

You're one of the lucky ones - but being in a stakeholder pension may be a contributing factor.

Too many existing pensions are the old style, high management and high monthly charges. The majority of people don't know the difference or don't understand. If your annual charges work out to be 1.5% then you need to make more than 1.5% for your fund to increase or your contribution will disappear! It scary the number of funds making less than 1%. At least if your annual charges work out at 1% or less you stand a chance.