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Lincoln Pension
ijth
Posts: 25 Forumite
I had a job in 1999-2000 where the company had no employer's pension scheme. At the time, I had £1800 spare, so I put it in a pension with Lincoln as a one-off sum. The net investment (with tax relief) was around £2337. Today I got a statement showing the current value to be just over £2100.
Without being an expert, is the amount so low as a result of early charges or are Lincoln just particularly poor performers? If they are poor, how do I go about moving the sum to another provider without losing the tax relief and minimising the charges.
Advice gratefully received!
Without being an expert, is the amount so low as a result of early charges or are Lincoln just particularly poor performers? If they are poor, how do I go about moving the sum to another provider without losing the tax relief and minimising the charges.
Advice gratefully received!
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Comments
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While I don't know the details of your particular situation, one thing to bear in mind is that 1999/00 is when the stock market was at it's peak. The FTSE 100 was touching 7000 and everything was looking good. With hindight, this was the worst possible time to make a lump sum investment in the stock market.
Over the next 3 and a half years the stock market tumbled until the same index was worth less than half it's value at the peak. It has since recovered to about 6000, so it is still lower than the time when you invested.
Of course you will have benefited from dividends over this time, but lost out in chrages. So I am not totally surprised at the value of your investment now, although I don't know how the performance compares with other comparable funds.
It is not the value of your investment now, but the value when you retire that is the most important! I don't know how old you are, but if you are young then there is still plenty of time for the stock market to boost your pension pot. The best situation for you (and me!) would be for equities to be low for a long time, and then rise dramatically just before you/we retire. However this is rather unrealistic and more contributions will be needed to make this pot into something you can live off when you retire.If I had a pound for every time I didn't play the lottery...0 -
If you now have a company money purchase scheme (GPP type), assuming the fund choice is OK, that would possibly be a good place to move it to, as GPPs normally have lower charges than you can get as an individual on the open market.Trying to keep it simple...
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