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Pension Charges - will stakeholder be cheaper?
anotherdollar
Posts: 70 Forumite
I have pension pot worth around £17K with Natwest Life and I invest around £75 per month. I have just phoned Natwest and the say I am charged around £3 per month, but apparently there is no annual management charge. (so around 4% of the amount invested per month).
I am thinking about moving the pot of money to Standard Life Stakeholder pension. I will be charged 1% per annum.
Ignoring the difference in expected growth rates, who is actually charging more?
Should I move from an ordinary private pension to a stakeholder?
Very confused!
I am thinking about moving the pot of money to Standard Life Stakeholder pension. I will be charged 1% per annum.
Ignoring the difference in expected growth rates, who is actually charging more?
Should I move from an ordinary private pension to a stakeholder?
Very confused!
A shadowy flight into the dangerous world of a man who does not exist.
A young loner on a crusade to champion the cause of the innocent,
the helpless, the powerless, in a world of criminals who operate above the law.
A young loner on a crusade to champion the cause of the innocent,
the helpless, the powerless, in a world of criminals who operate above the law.
0
Comments
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Banks are notorious for not quite giving out the right info.
The annual management charge is built into the funds you invest in and not on the pension. So, they are correct the pension itself doesnt carry an AMC. The funds you are invested in do.
SL are probably cheaper unless the amc with Natwest is low. Bigger concern is not the charges but the investment funds you are in now and what you would be moving to. That is where the money is made or lost.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 -
Is 4% larger than 1%? The Pope was Catholic last time I heard
4% is outrageous.Even 1% will eat up as much as 20% of your total fund over a 25 year period.
Move the money.Trying to keep it simple...
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EdInvestor wrote: »Is 4% larger than 1%? The Pope was Catholic last time I heard
4% is outrageous.Even 1% will eat up as much as 20% of your total fund over a 25 year period.
Move the money.
Remember the 4% is apparently a one off charge. So give them £100 and only £96 is invested, but there is no annual charge (therefore it isn't charged again). With a stakeholdeer give them £100 and £100 is invested, but a 1% charge is made through revaluing the price of the units.
Natwest told me that there is no annual charge, so the units are not revalued to recoup the annual management charge. Is this true?
Overall, I just want to know if £100 is invested with Natwest & £100 with a stakeholder and the funds grow at exactly the same rate. What will yield the highest return due to costs?A shadowy flight into the dangerous world of a man who does not exist.
A young loner on a crusade to champion the cause of the innocent,
the helpless, the powerless, in a world of criminals who operate above the law.0 -
I would want it in writing from Natwest along with a projection. That is the only way you will know for sure. You can then compare the projection with a modern alternative.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
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