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

pamaris

Hello

I did not quite understand the section of this article about using discounters. We currently have a small Scottishlife talisman personal pension worth £6000... is there some way to save money/ commissions on this by transferring it using Cavendish/ Moneyworld (from the article)? I am pleased with the performance of it overall, although I am not sure what to compare it to.

dunstonh

We currently have a small Scottishlife talisman personal pension worth £6000... is there some way to save money/ commissions on this by transferring it using Cavendish/ Moneyworld (from the article)?

No. The Talisman range is closed for new business.

I am pleased with the performance of it overall, although I am not sure what to compare it to.

You cant really without knowing what you are looking for. Many Talisman plans contain guaranteed annuity rates and these are available on the unit linked funds as well as the with profits. This can make them highly attractive.

If you have the guarantees and transfer out you will have lost them forever. The levels of Scot Life guarnatees would see you needing around 40% more in value on the alternative plans just to get the same amount. So, there is no justifcation for doing it.

Andy_L

dunstonh wrote: »

There is not much chance of Scot Eq going bust. Just make sure he sticks to unit linked funds in the pension.

I think Liz was talking about the employer going bust. If they do the money's safe as it's in a Scot Eq pension in your Son's name

letmelaughagain

I am 56 years of age and due to circumstances have requested my 25% lump sum from my pension. Although I've now been trying to get this for some time and assured that I can, my 'pensions' rep. keeps telling me not to as I would lose out down the line. He keeps suggesting alternatives that I do not wish to use as I already know about them. This cash would be of great benefit to me just now not in ten years and now that I've found your wonderful site I know with all the advice and info. I'll be able to get structure into my life in a much better way. Can you advise?

EdInvestor

letmelaughagain wrote: »

I am 56 years of age and due to circumstances have requested my 25% lump sum from my pension.

What kind of pension is it? Occupational final salary/ money purchase, Section 32, personal pension? Does it have "protected rights" (contracted out) money in it?

jamesd

letmelaughagain, it's hard to comment without knowing the effect on the pension and your other circumstances. Depending on pension type it may also be possible to take 25% of just part of it and leave the rest alone and that could often be a better option than 25% of it all.

amyk_3

I am 24, I do not have a private pension and do not have the option for one at the moment from my employer. I am able to save £300 a month and I was thinking when I turn 25 in Jan 09, I would start putting £100 of that £300 into a pension. I don't know where to start, although I have read Martin's thread and saw the Cavendish online one. I am worried if that company goes bust or something, what will happen (it is not a well known one like Scottish Widows or a bank you see everyday) and whether it would be better to keep my money in an ISA rather than building up a pension. Can anyone shed any light for me?

dunstonh

I don't know where to start, although I have read Martin's thread and saw the Cavendish online one

Cavendish are not pension providers. They are IFAs who offer an online service for people who know what pension they want and how they want to invest it. What they have available though for this "execution only" service is a limited panel of mono charge pension contracts. At your age you can do better than these.

I am worried if that company goes bust or something

It doesnt matter if Cavendish (or any IFA) goes bust as your money isnt with them.

whether it would be better to keep my money in an ISA rather than building up a pension.

Check the ISA vs pension sticky at the top of the forum. The first 2 pages have the pros and cons.

willirl

MSE_Archna wrote: »

We have just used Cavendish and got the pension commission back as promised .... very professional and very cheap ... can't recommend them enough.

dunstonh

willirl wrote: »

MSE_Archna wrote: »

We have just used Cavendish and got the pension commission back as promised .... very professional and very cheap ... can't recommend them enough.

Are you sure?

If the commission was rebated back to you then that would be a breach of HMRC rules. It would also be rather foolish of Cavendish as well as they would suffer any clawback. It also wouldnt save you much in the long run as the whole idea is to get a lower annual management charge which is where you save the money in the long run.