Any thoughts on HSBC pension funds?

mroller

While at my HSBC branch recently they suggestd I meet with one of their financial planners to set up a pension. I am self employed and was thinking about it anyway for the tax benefit.

So had the appointment, expecting they would try to flog me funds with high fees, initial charges etc... but was quite surprised actually. There are no initial fees, annual charges are 1% for most funds, TER are low as well.

Anyone has any experience of this? it is called group pension and I think you can view it on this link (pensions for employers)

https://www.business.hsbc.co.uk/1/2/business-banking/pensions;jsessionid=0000mvE-Ma97O9cMKdqoQQfbEu0:15ii5991j

Looking forward to hearing from you.

dunstonh

So had the appointment, expecting they would try to flog me funds with high fees, initial charges etc... but was quite surprised actually. There are no initial fees, annual charges are 1% for most funds, TER are low as well.

Initial fees actually work out cheaper for most people (breakeven point is typically around 10 years. For example a fee that equates to 3% up front and 0.25% p.a. will be cheaper than a mono charged pension with an AMC of 1%.

Some of the HSBC world selection funds are dire and damned expensive and a good example why the TER should be used and not the AMC.

atush

Generally speaking (and HSBC is my bank too) the Bank is the last place I would go for financial advice or investments.