Please help in interpreting pensions projections

tryhard_2

I would be most grateful for any advise in interpreting projections. I have read the detailed discussion about SERPS/S2P thread. My queries are
1. the projected funds at retirement come under 5 headings - higher growth rate 9%, middle growth rate 7% lower grothe rate 5% and two under REAL growth rates 3% and 1% - what figure am i meant to look at when calculating my pension at retirement age
2. when thinking of transferring from 1 provider to another what growth figures should i be looking at?
3. the SERPS/S2P discussion mentioned that companies will eat into your pension. what annual fees are usually charged by these pension companies? i'd like to calculate what my pension pot would go down to if i stop paying anymore into it.
thanks in advance

EdInvestor

Hello tryhard

Can you give us some info about your pension?What company is it with? What fund is it invested in? Is it in a With profts fund? What charges are you paying?

It's not a good idea to just stop paying in.Rather you should consider transferring the money, either out of the fund you are in into new funds at the same company (if there are some good ones) or to a new company which offers good funds.

To do well, a pension needs low charges and high performance funds inside it.You need both, one on its own won't do.

Char

tryhard_2

thanks EdInvestor. its ROPP instead of SERPS with AXA managed fund Acc - i cannot figure out the charges will have to look at original paperwork; looking at performance for 2006 it has not been great but i'm not sure what to compare it against.

dunstonh

Its AXA managed fund. You shouldnt expect great performance. Its not a fund that is designed to give great performance.

It has been a top half performer in its sector for the last 4 years with 11.29% last year. Most people would be happy with double figure returns over the long term although higher risk funds did perform better, as did individual sector allocated funds to the same risk profile.

So, its not bad and its not the best. You could do worse. I wouldnt have my money there and I wouldnt let any of my clients have it there either and I doubt any of the regular contributers here would either.

The fund is in the balanced managed (pension) sector in case you wish to compare it to others in that sector.

EdInvestor

tryhard wrote:

the projected funds at retirement come under 5 headings - higher growth rate 9%, middle growth rate 7% lower grothe rate 5% and two under REAL growth rates 3% and 1% - what figure am i meant to look at when calculating my pension at retirement age

Most advisors will use the middle figure of 7%.The "real" figure adjusts returns for inflation.

when thinking of transferring from 1 provider to another what growth figures should i be looking at? [/quote[]

The figures are set by the regulator and are all the same as above.Standard is 7%

what annual fees are usually charged by these pension companies?

There are large variations.Write to your company and ask.

tryhard_2

thanks dunstonh and edinvestor. glad to know its not the worst. this was advised by a financial advisor.

dunstonh

this was advised by a financial advisor.

Independent financial advisers recommend funds. Tied agents do not recommend funds, you pick them (at least that is how it is documented). If you saw the AXA rep, then being in that fund is what you should expect from an AXA rep. Its the default fund. If you saw an IFA, then its very disappointing that they would make that choice as its lazy.