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Good or bad time to increase pension contributions ?
Comments
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So who should i be with ?
I dont know. There is no one best pension and I dont know which is most suitable for you. For those of us that are regulated in real life we cannot make such recommendations to you on an internet forum. It would breach FSA rules.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
So who should i be with ?
That's very difficult to answer, and the barest minimum of info is size of current pot and level of monthly contributions.
I'm guessing both are fairly modest in the grand scheme of things, so you might want to look at Cavendish Online and their "repensioning" options.
However, even though the Virgin pension isn't great, it's way better than nothing, and the drag of fees etc. only really builds over the years and decades, so don't do anything hasty and if your can afford to increase your contributions, now is as good a time as any.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Can i have more than one ? ie leave the virgin as is and open another with the extra contribution i was going to put in ?0
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Can i have more than one ? ie leave the virgin as is and open another with the extra contribution i was going to put in ?
Yes, you can have - and contribute to - several pensions at once.
However, moving pensions is easy, and about to get easier, and how platforms charge is also going to get more transparent.
Whether it's worth moving now/later/ever depends on your age. If you have (say) a decade or more to retirement, than holding a better selection of funds in a lower fee environment, will make a dig difference.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Yes, now is a great time to invest more.
As you will get more shares/units for your monthly contribs when markets ate wonky.
I personally agree with this 100%, and I am doing the very same. It all depend on if you will miss that extra contribution or not.
Ok the markets may be fooked but reward favours the brave...0 -
You Can have as many pensions as you like. There are two problems with the Virgin pension:
1. Very limited investment choices.
2. Unusually high charges for those investments. The charges are paid from the fund management fee which is expressed as an annual percentage of your investment like 1% but is charged pro-rata each day, reducing the value of the investment a little each day.
This means it's usually a good idea to transfer the money from a Virgin pension to something that won't take so much in charges. Even if you keep exactly the same type of investment - a FTSE All Share Index tracker fund is probably what you're using.
For regular contributions the time to pay in more is when all the talk is of falling and depressed markets. The time to pay in less and/or switch some money to more cautious investments is when there's talk of how the boom won't ever end.0 -
Even if you keep exactly the same type of investment - a FTSE All Share Index tracker fund is probably what you're using.
Really? Don't they have some default managed fund that at least tries for a decent asset/territory spread?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Really? Don't they have some default managed fund that at least tries for a decent asset/territory spread?
Nope.
Hence one of the reasons it is so poor. The other being that it is a DIY pension but takes full commission. An IFA on full commission can halve it on costs.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
The default fund is apparently the "Pension Growth Fund" which "buys shares in over 600 leading companies** on the London Stock Exchange, listed on the FTSE All-Share Index ... ** The FTSE All-Share Index"". It has a 1% annual charge.
You might also be surprised to read that index tracking was "pioneered by Virgin" (see page two).0 -
Hmmmm seems i need to move the lot !
Thanks for the Cavendish suggestion gadgetmind, i see money saving expert recommends them too which is nearly enough for me alone.
Should i just stick with stakeholder or go for personal ?0
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