virgin pensions low charges??? is it worth it

Legacy_user

I took out a virgin pensions about 4 years ago
( I run my own small business) just myself and 1 other parttime
I just pay £3600 into a stakeholder
I chose virgin as it had the lowest charges at the time
1) how does it perform compared to other pensions
2) Now as through other sites you can claim charegs back, is it probably better to swap elsewhere?

Thanks

Howard Wood

paul666

No, Speak to Cavendish online (IFA) or approach L&G direct. with £3600/pa you should only need to pay 0.6% instead of 1% with virgin. Virgin's customer service is near perfect though...

System

thank you

dunstonh

my view it isnt.

Is it better to save 0.2% or similar in charges but have funds which have performed 1-10% lower than professionally managed funds which may cost a little more?

Pal

You are on your past performance bit again DD!!  ;)

As the investment is currently an index tracker then 1% seems expensive, and he should switch to another index tracker fund that charges a lower fee (assuming he can find one). If he can do this through an online IFA that will rebate commission then even better.

As for how it has performed, presumably it has performed more or less in line with the index (FTSE all share to all intents and purposes) give or take a bit, less then annual 1% charge.  In other words it has performed averagely, which is exactly what it was supposed to do.

dunstonh

yeah i know. I really dont want to sound like a past performance type of person as i am not that way.

However, i do admit that i chuckle at the lengths that some go to save 0.1% or similar but dont look at the management of the fund they will end up in.   A consistantly 4th sector fund from from an insurance company will probably always be 4th sector.

I just think a little more research is involved and trying to save 0.1% when it could cost you a lot more in fund performance isnt the right move.

a 20k fund at 0.1% difference in charges is £20 a year.    if i decide to shop at safeway this week it will cost me about £20 more than going to Tesco.  

paul666

Perhaps unsurprisingly, virgin money only offer cash or UK All-Share tracker in their choice of funds.

I really don't want to enter the tracker vs active funds debate.

But in this case it would seem prudent to move to the lowest charging tracker.

Besides, with L&G, there are more funds to choose from anyway should the poster wish to "Increase exposure to non-domestic markets" or "Diversify across multiple sectors" or "Increase weighting in cyclical stocks" or "go long on Japan" or "Take advantage of the latest fund manager move" etc etc.

Pal

I really don't want to enter the tracker vs active funds debate.  :o

Scared?

DiggingOut

Scared?  ;)

He's just a newbie, go easy on him, you big bully.

I'm a big, tough "not so newbie." I'll take you on!

Oh, except I agree with you....

Howard, if you go L&G, just go direct through their website, rather than pay a broker.

http://www.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Pensions;action=display;num=1082431952

paul666

Scared?

May I refer the honourable gentleman to https://www.fool.co.uk where those more educated than myself will happily spend hours arguing this on my behalf (on both sides) ?

I don't want this site to become like the fool and I don't want the fool to become like this. They are each wonderful in their own way.

Pal

Ah, but the site is called Fool for a reason.