Worth having a pension fund manager over the pension company?

infocom

thanks

I think the fundamental question is then would a fund manager be able to make me more than his costs to manage it compared to the pension company (so greater than 2% increase in return). I suppose this would be hard to answer.

onceuponatime_2

infocom wrote: »

Hi

I am self employed and have a private pension arranged by my financial advisor. The pension company take about 1% commission I believe, I receive hardly any "personal/one to one" feedback from them just their annual (or biannual) generic report how their investments are doing.

My FA is now offering they manage my pension fund, but will take 2% commission and a transfer fee. They will provide more reporting and more personal/one to one service.

There are no guarantees but the intention is their more personal management of the investment would make more money for me than their additional cost (so I would still be better off) by reviewing and adjusting pension investments. I dont get any feedback about that from my main company.

Just wondered what anyone thinks, would a smaller/individual company pension manager who meets me and provides feedback and reporting be a good service to use compared to a main/large/national pension company doing it who dont know me and dont provide personal reporting/review?

Thanks

Do yourself a favour stick your money under the mattress. Pensions are only good if you are able to put mega money in them by yourself or by your employer.

dunstonh

I think the fundamental question is then would a fund manager be able to make me more than his costs to manage it compared to the pension company (so greater than 2% increase in return). I suppose this would be hard to answer.

I think you have missed what Linton has said.

The pension company administer the pension. The fund manager controls the investments. If you use internal pension funds there is still a fund manager or fund purchasing structure (which may just be computerised or passive managed).

i suspect the charge of 2% p.a. is not right. maybe the total charge is 2% pa all in.

Think of it is three layers.
1 - cost of pension provider/platform/administrator
2 - cost of investments/fund management
3 - cost of advice

dunstonh

onceuponatime wrote: »

Do yourself a favour stick your money under the mattress. Pensions are only good if you are able to put mega money in them by yourself or by your employer.

Any option is only as good as what you pay in. If you put in peanuts you get peanuts back.

grey_gym_sock

onceuponatime wrote: »

Do yourself a favour stick your money under the mattress.

yes, but under which mattress? for a fee of only 2% p.a., i can give personalized advice on this

(note: i don't actually provide the mattress. you have to pay for that separately.)