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

Cavendish

Just to clarify; it was an annuity purchase and we rebated all of the commission.
We reinvest all of the commission on pensions back into the plan by reducing the Annual Management Charge, and we rebate (give back as cash) all of the commission on annuities.
Cavendish Online

willirl

Sorry for confusing the issue... but cavendish on-line are correct ... to confirm it was the pension annuity purchase commission.

Cheers

Cavendish wrote: »

Just to clarify; it was an annuity purchase and we rebated all of the commission.
We reinvest all of the commission on pensions back into the plan by reducing the Annual Management Charge, and we rebate (give back as cash) all of the commission on annuities.
Cavendish Online

claralou

Have read the pensions articles on the site but unsure whether they help me with the following 2 queries:

1) The annual statement for my L&G personal pension plan showed a c10% drop in value from last year, for the first time since I've had it. I guess I knew pension funds could go up as well as down but since this is the first time it's happened it caught me by surprise. I read Martin's article about it being the funds & investment that cause a pension to perform badly, not the product itself. It reminded me I was 21 and NOT a MSE when I filled in the application form, and I haven't a clue what options I chose. Should I look to revise my investment choices within this product?

2) I also have a small amount of pension with the Civil Service Pension scheme, and will soon be starting a new one with the NHS Pension scheme. Do I just keep all 3 pensions open or should/could I be looking to consolidate and transfer funds from one to the other? I read Martin's repensioning article but wasn't sure how it would all work in my situation.

Thanks in advance to any MSEs kind enough to steer me in the right direction!... I felt pretty proud of myself for getting my head round the world of mortgages last year, forgot I had to learn about pensions as well!

skd_2

hi there - looking for a direction to determine which advice i need...

- so, i am an hrt earner, debt-free
- am changing employers, must take pension with me - £40K
- new employer has no pension plan
- want to put lump into pension plan
- will save £2500 cash per month going forward
- prefer conservative approach: looking for lower risk, not tied to market (willing to play some but majority must stay low / norisk)
- annual work bonuses for other investments or lumps
- other investments exist (some ISA, some cash to be converted to property when time is right, some in funds)

so, it surely is enough to warrant a fair bit into a pension plan, doesn't it, as well as other things?
i need a strategy

cheers

edit: it brings up another question or two: if i invest X per month to achieve Y as a result, in a PP or SHP or SIPP at NU or the Pru or wherever, is Y a guaranteed result or is Y pumelled with the markets? (that is what i mean by risk free: if i invest 10 for 10 years with the target of having 300 or 400 or whatever then i want to invest at least SOME of my money in something that I KNOW will deliver... do i know that here?
cheers again

dunstonh

edit: it brings up another question or two: if i invest X per month to achieve Y as a result, in a PP or SHP or SIPP at NU or the Pru or wherever, is Y a guaranteed result or is Y pumelled with the markets? (that is what i mean by risk free: if i invest 10 for 10 years with the target of having 300 or 400 or whatever then i want to invest at least SOME of my money in something that I KNOW will deliver... do i know that here?

Options with some degree of guarantees tend to underperform in the long run. So, that means you have to pay more into them to make up for that fact. When you are paying monthly, market volatility is a good thing as you get to buy units cheaper. Over the long term it is those cheaper units that make the most money. As you get closer to retirement you reduce the risk of your investments. You should also periodically rebalance your portfolio and remember that investing doesnt mean going 100% into the stockmarkets. As long as you manage your investments and dont leave it to chance then you should be fine.

MikeJones_2

Hi skd,

skd wrote: »

- am changing employers, must take pension with me - £40K

Why? Do you have less than 2 years pensionable service in this scheme?

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser.

EdInvestor

skd wrote: »

i need a strategy

How old are you? the longer the money is going to be invested, the higher risk you can take (with part of it).

Because of the high cost of manufactured guaranteed "products" , it is better to reduce risk through diversified asset allocation and reducing charges by investing directly in shares, gilts, cash etc.For instance you might choose to have 75% of your fund in cash and directly held gilts (which are risk free if held to maturity) and only 25% of the money in directly-held shares and perhaps a property investment trust. This would reduce the risk substantially.

Choose a low cost online SIPP with no annual fee, such as www.sippdeal.co.uk and keep trading to the absolute minimum for the best result.

Ronnie4ds

Hi to all,

I've recently started a new job which has a stakeholder pension scheme. I'm 35 and currently don't contribute to a pension at the moment, but do have a few years of pensions funds invested from a previous company pension scheme.

I have an appointment with an IFA next week who has got advice for my new pension but I've now discovered my company has a stakeholder pension set up and I'm eligible to join this scheme.

1. Should I inform my IFA of the stakeholder pension and if so, would I still need his advice?

2. Do I go with the IFA's advice or do I go with the stakeholder pension?

3. Does a stakeholder pension mean I have to go with the company pension Investments or Do I still have the choice to pick my own pension and the company just contribute towards mine?


I hope these questions are not as confusing as I find the subject.


Kind Regards,
Ronnie.

Ronnie4ds

Hi to all,

I've recently started a new job which has a stakeholder pension scheme. I'm 35 and currently don't contribute to a pension at the moment, but do have a few years of pensions funds invested from a previous company pension scheme.

I have an appointment with an IFA next week who has got advice for my new pension but I've now discovered my company has a stakeholder pension set up and I'm eligible to join this scheme.

1. Should I inform my IFA of the stakeholder pension and if so, would I still need his advice?

2. Do I go with the IFA's advice or do I go with the stakeholder pension?

3. Does a stakeholder pension mean I have to go with the company pension Investments or Do I still have the choice to pick my own pension and the company just contribute towards mine?

4. Can cash in on this investment if I got a long term illness, because it seems silly if I invest all this money to be told I might not live to retirement....

I hope these questions are not as confusing as I find the subject.


Kind Regards,
Ronnie.

EdInvestor

Will the employer make a contribution into the stakeholder pension for you?