Pension MoneySaving: Buy a different way to boost returns Article Discussion Area

koru

jamesd wrote: »

TheLearner2008, ignoring your personal risk tolerance I'd say that we're currently in the part of the economic cycle when an aggressive profile is likely to be most beneficial. When you read of the markets getting close to their past highs or everyone piling in because things have had years of great returns that would be a good time to switch gradually to a more cautious mixture, in preparation for the next drop so you don't lose so much of your gains.

I agree with the second sentence, although spotting that markets are becoming overvalued is tricky. In relation to the first sentence, you might be right, but shares are now significantly overvalued by most long term measures. Not as overvalued as 2 years ago, but that's not necessarily saying a lot.

kimpatrick

Hi MoneySavingExperts,

Much like many MoneySavers, I am in my twenties and moving jobs every year or two. I have been following the mantra of choosing funds offering long-term growth, but does this theory still hold true if I keep accumulating new pensions with each new employer? I now have three small pensions (and counting!).

I'd be very grateful for any advice.

dunstonh

but does this theory still hold true if I keep accumulating new pensions with each new employer?

it doesnt matter if you have 3 pensions of £7000 each or one pension of £21000. The principle remains the same. Money purchase schemes can be consolidated if you want.

Tammy86

Hi,
I'm completely new to pensions and obviously I want to put my money in a good place. Has anyone got any tips that may help me?
Also is there any banks that are advertising a higher % than others?
Kind regards,

dunstonh

Also is there any banks that are advertising a higher % than others?

Can cover this point off with your other question about tips.

Never buy your pension/investment/life assurance etc from a bank. That is the most expensive distribution channel and generally, they have the worst complaints stats too.

Investments are not savings accounts. So, you dont go by a hypothetical %. You go by where you want to invest and the best way to achieve that.

Tammy86

dunstonh wrote: »

Never buy your pension/investment/life assurance etc from a bank. That is the most expensive distribution channel and generally, they have the worst complaints stats too.

Hi Dunstonh,
Thanks for that. I'll start looking around!

AmandaKemp35

Dear MSE,

I am completely lost when it comes to pensions and as i'm not too far off the 40 milestone, I really should knuckle down and sort something out for my future!!

I do not currently pay into any kind of pension and have virtually no savings :-( Not great I know but better late than never.

I have 3 small company pensions from previous employments and I want some advice on what is best to do with them.

The most recent pension I contributed to for about 8 months, I left the company earlier in the year and I have recently received a letter asking me what I want to do with my contributions. They are bascally saying (if I have understood correctly) is that if I would like a refund, I will receive approx £350 but if I transfer to another pension the value would be worth approx £3,000.

I have very limited time to decide which option I would like or they will automatically refund!

I also have 2 other company pensions I contributed to several years ago (one for approx 4 years and the other for approx 3 years) and I've kind of let them fall off the radar and forgotten about them, I never updated the companies as I moved home or circumstances changed etc!

What I would like to know is, is it possible to transfer all 3 pensions into a single pension? Am I better off doing that or just waiting until I retire to collect whatever small payout I will get for the 2 older pensions and getting the refund for the most recent pension? And... what is the best type of pension and company to use to combine all 3 pensions if that is the best option to take?

Please help because I am so confused by all the pension jargon, I just dont understand it all and I don't want to be living in a cardboard box when I retire!!!

dunstonh

Please help because I am so confused by all the pension jargon, I just dont understand it all and I don't want to be living in a cardboard box when I retire!!!

We cant be much help. Without knowing all the details of the existing pensions, you current position and what you want, there is little we can do for you.

1 - you should notify the existing schemes of you updated address.
2 - transferring the recent scheme gives you more money than a refund. (£3000 vs £350 - the refund is also subject to tax and NI - the transfer isnt)

The rest is difficult without the facts and for that you are best getting a local IFA out to see you.

fertyskids

Hi

im 36 stay at home mum.

want a pension.. went to IFA who advised me to use skandia

paperwork came through....

i pay £240pcm plus £60 tax benefit = £300pcm for 28yrs


annual management charge skandia is .750%

Units are deducted half-yearly to meet the cost of the F. advisors fund based fee of .50% of the fund value.

units are deducted during the term of the plan to meet the cost of the advisors initial fee of £15 for each regualar payement.

so

at end of year 28 .....

total paid in £100,800.00

total actual deductions to date £50,400

effect of total deductions to date £101,000

what the transfer value might be £199,000


i didnt realise the pension would cost me so much. am i niave or is this a lot.

Can i do it cheaper...?

i hope ive given you enough info for you to give me your opinions

dunstonh

. went to IFA who advised me to use skandia

Skandia Life - not so good. Skandia Investment Solutions very good.

i didnt realise the pension would cost me so much. am i niave or is this a lot.

Thats cheap for a fund supermarket pension. Its cheaper than stakeholder. Plus, with the Skandia fund range available its better.

Can i do it cheaper...?

Yes. However, you will have to compromise on your investments if you do.