Secretive pension providers

Abeltwo

Hi Gatgetmind,
I am a 54 year old (petite blonde ha ha ) woman who wants to retire next year. The situation re annuities, particularly for younger women, is dire at the moment, so taking a SIPP will give me a few years to see if the situation improves. It may not, thats a risk I am willing to take. I have a very nice NHS pension and several hundreds of thousands which I will turn into "buy to lets" so seem a pretty good candidate for a SIPP/drawdown. Providing I have the info on which to base my decisions, I am sure I can decide as well as if not better than, a third party who not only takes my money but a commission from the provider he chooses on my behalf. I bear the consequencces of any poor decision I make, any financial advisor who advice results in a poor yield, bears nothing, he certainly wont reimburse me for any losses.

Royterer, add solicitors to that list please :-) :-)

jem16

Abeltwo wrote: »

Dear Jem
You might want to look at that assumption again. Two of my higher rsik funds have yields of 0% and 0.5% whilst one of the lower risk funds has a yield of 6.41%
this information ws given to me by..... A financial advisor. Hmmmmm

Sorry not quite following your reply.

The information I gave you came from Trustnet.

Are you saying it's wrong or are you simply misunderstanding what yield actually means?

gadgetmind

Abeltwo wrote: »

several hundreds of thousands which I will turn into "buy to lets" so seem a pretty good candidate for a SIPP/drawdown.

I assume the BTL is separate to the SIPP? (It has to be, but just asking!)

I'm no great expert on who's the best for drawdown as I'm a distance off that right now.

Oh, and are you looking at capped or flexible drawdown? If capped, you won't be able to take any more out per year than with a level annuity, and the latter relies on you already having £20kpa of secure income.

Abeltwo

The buy to lets are of course, seperate. Commercial property has interest, but I think the "High Street" has a poor outlook at the moment, anyways.

Capped draw down, and hopefully only that for maybe 3-8 years or so.

Jem16, I am perfectly aware of what yield means. My point is that quite a few so called IFAs, have risen to that giddy height from a career as a bank clerk and a course they were sent on. I gather there are plans to ensure they receive more training than that in the future, but at the moment, it doesn't compare to the 6 years in tertiary education I have had to go through to ensure I am fit for my job.

Abeltwo

Annuities that offer any sort of protection against inflation are giving about £3500 -4K per year.

The drawdown is running around £9K. If I lived to be 130 I would still not come to the end of my CETV via an annuity
quod erat demonstrandum

jem16

Abeltwo wrote: »

Jem16, I am perfectly aware of what yield means.

Fair enough but your first post seems to indicate otherwise.

Abeltwo wrote: »

a high yield usually incurs high risk and a low yield low risk, mostly.

I suspect you are mixing up yield and return.

My point is that quite a few so called IFAs, have risen to that giddy height from a career as a bank clerk and a course they were sent on.

I'm not quite sure what my reply has to do with IFAs but you seem to be getting a little stuck on this.

Abeltwo

Perhaps I am, but.....something is not quite right when so many pension companies insist Joe Public cannot access any of their products other than via one of these people. I have a sense that it is "jobs for the boys", "protectionist", "keep it in the family". I have an aversion to any sort of patronisation, particularly from an industry with a record that would make a !!!!! blush

Abeltwo

The missing words are via a coy moneysavingexpert, when I referred to the oldest profession by its proper name

jem16

Abeltwo wrote: »

Perhaps I am, but.....something is not quite right when so many pension companies insist Joe Public cannot access any of their products other than via one of these people.

The product providers are protecting their own backs as you have to be properly regulated to give advice. If the provider gives the advice and then someone cries "missold", they are the ones in bother. If you don't like that you need to blame the regulator not the companies nor the IFAs.

The majority of the public don't know one end of a pension from another ( very clear from the type of posts we get on here frequently) so telling them to see an IFA is correct.

As you have been told there are now DIY options that can be accessed and you therefore need to look at these. However you really need to be using the correct terms if going DIY otherwise it will lead to problems.

I have a sense that it is "jobs for the boys", "protectionist", "keep it in the family". I have an aversion to any sort of patronisation, particularly from an industry with a record that would make a !!!!! blush

I think you need to see past your rather blinkered approach to be honest. Like every profession there are good and bad. Learn a bit (or a lot - it's up to you) and many IFAs will relish working with someone who likes to find out what's going on. Of course there are some bad apples who won't.

If you don't want to use an IFA then in many cases nowadays there is no need. However buying an annuity is one area where it's foolish not to though.

gadgetmind

Abeltwo wrote: »

the end of my CETV

I had to look that up, and what I saw scared me. Are you really sure you want to DIY this?