Is it too expensive?

Seany

I'm none too clued up when it comes to pensions (and many other things),

So I'm turning to you sages for some wisdom!

I currently have a Group Personal Pension through my employer with Aegon. Based on a brief conversation with the advisors the company has designated, 100% of my contributions are going into the Scottish Equitable BlackRock Aquilla 40/60 Global Equity Index Lifestyle fund.
Fund information

(standard fund only)

Sector

Specialist-Pen

Fund Size (£ million)

£14.0

Launched

31-Jul-2006

Disclosable yearly

charge/expenses

1.00%

SEDOL/Mex ID

B1G2WN3 / SEBGGE


It's a 1% AMC as far as I can see - It appears that annual charge is from my contributions and not my total pot. Is this correct? Is there anyway to find out what commission if any is being paid to the consultants who seem keen to keep me in this fund?

I think thats the best questions I have for now! Thanks :T

JoeCrystal

Seany wrote: »

It's a 1% AMC as far as I can see - It appears that annual charge is from my contributions and not my total pot. Is this correct? Is there anyway to find out what commission if any is being paid to the consultants who seem keen to keep me in this fund?

I think thats the best questions I have for now! Thanks :T

Well, 1% AMC of that fund is levied on the value of fund so basically, you are paying 1% within it anyway. You would have separate AMC for your own pension provider and that is levied on your total pension fund though in some case, AMC for some part of pension value fund could differ if it is single payment or regular payment. Do you have any online client service where you could check your pension's AMC?

As for commission, well, just contact Aegon. I emailed my own (Scottish Widows) asking for how much commission they paid to my IFA in a year which they posted a reply concerning the amount. It was in fact 1% of regular payments in my case. I am not complaining since it is likely to be cheaper than 1% commission on pension value, I hope so anyway.)

dunstonh

Is there anyway to find out what commission if any is being paid to the consultants who seem keen to keep me in this fund?

Ask them. Not that you can do anything about it as the terms of the GPPP are agreed between the employer and the adviser. The advisers earn the same irrespective of the fund.

The fund is largely a default fund for a lazy investor.

SallyG

That's this fund?
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=I8F25&univ=P

What makes it the "lazy" option?

Should we only invest in these?
http://www.trustnet.com/Managers/Home.aspx

Linton

A "lazy" investor is one who is happy to invest in a single fund which pays the fund manager to allocate the money in a broad range of investments as he deems appropriate.

The alternative is to invest in a variety of different funds which you then manage by moving money between the funds as the proportions become inappropriate for your objectives.

Loughton_Monkey

Seany wrote: »

.....It's a 1% AMC as far as I can see - It appears that annual charge is from my contributions and not my total pot. Is this correct? Is there anyway to find out what commission if any is being paid to the consultants who seem keen to keep me in this fund?

If your scheme is one in which your employer contributes on top of your own contributions, then whatever the charges/commission it really doesn't matter.

Even if there are no employer contributions, then a 1% AMC is "reasonable" and less than most people pay in 'go it alone' retail pensions. Your final pension will relate far more to specific fund performance (your choice) than to minor changes in the AMC.

That 1% AMC could, for all I know, be going 0.1% to the broker, and 0.9% retained by the fund manager. It could be nothing for the fund manager and the whole 1% to the broker. Either way, this doesn't affect your final pension value, so why are you bothered about it?

I bought 6 eggs at Morrisons yesterday [her indoors had forgotten pancake day]. All that interested me was the price. I simply do not care how much profit was received by Morrisons, and how much by the chicken farmer. It simply doesn't matter to me.

Seany

JoeCrystal wrote: »

Do you have any online client service where you could check your pension's AMC?QUOTE]

I do indeed - well I have an online service. And checking for the last three years, the charges taken in december have been along the lines of £35, £55 and £79 respectively. Which is more like 1% ish of my comtributions I think rather than the total pot (valued at the mo about 35k).

Thanks for your replies folks. I have to this point and possibly for the next few months been a 'lazy investor'. But the plan is to look more into it and take a greater role in what I'll be drawing on in later life!

All the information/conversations that appears on here is a big help to furthering that! :T