To buy or not ?

Just_landed

Thinking very seriously of taking my private personal pension annuity quote from Partnership via Hargreaves Lansdown. I've got a couple of days left to accept their quote. My fund over 23 years has averaged less than 3% growth ( ISA‘s rule OK, how right was Ed Investor ). The more I pay in the less it seems to be worth, even the value of the fund units are all but at their highest price ever. The thing is they say after the 21st of this month. The amount that would be offered as an annuity will be less, due to the EU Laws coming into force. I could keep paying in but I do not think it’s worth it. I'm 59 been in better health and the quote is enhanced. I know at least one annuity provider has altered their prices already. My question is what are the views of folk in this forum of how much I might lose by waiting until after the 21 December in other words to buy or not to buy ?

Ta :think:

atush

If you ISAs have done better than your pensions you were not sufficiently looking after your pensions. given they both can invest in the same things, your pensions should have done better.

It is the funds you invested in your pension that are to blame, so why not move them to a SIPP and keep on investing using your ISA strategy?

And your fund no longer needs to buy an annuity so you can jump off that soap box. Use drawdown.

Just_landed

When you worked 100 -120 hours a week since 1989, but no more, you do not get much time to do things like you suggest. Moral of the story :- Do not trust Pension Financial Services.
Many years ago I did something about the same as you suggest I have a third in cash ISA's (that's how I know what I say is true) and I have a third in S & S ISA's

jamesd

Is that 3% average on the total value you paid in over all of the years you were paying in? Asking because much of the money wouldn't have been in for the full time, so the actual growth rate for the time the money was in the pension would have been higher.

somethingcorporate

Right, it's someone elses fault you didn't look at how your pension was performing for 23 years?

You would have thought given you'll be drawing your pension for (hopefully) a lot longer, you could have spared some of your 120 hour weeks on making sure you were financially secure in your old age.

Just_landed

jamesd wrote: »

Is that 3% average on the total value you paid in over all of the years you were paying in? Asking because much of the money wouldn't have been in for the full time, so the actual growth rate for the time the money was in the pension would have been higher.

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There was a calculator on the Web can't think where at the moment, typed in how much paid in each month along with the number of years and it came up with the % age. think growth.
I've had enough & turning it into a Deposit fund tonight / tomorrow fingers crossed the unit price stays the same as last nights price or better tomorrow morning. We are due another crash soon so playing safe, being close to taking annuity.

Just_landed

somethingcorporate wrote: »

Right, it's someone elses fault you didn't look at how your pension was performing for 23 years?

You would have thought given you'll be drawing your pension for (hopefully) a lot longer, you could have spared some of your 120 hour weeks on making sure you were financially secure in your old age.

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6 hours sleep a night leaves even less time to do such things.
Not everybody understands pensions. I will admit I believed what I was told (double glazing sales men springs to mind) that :-pay in X a month and you will get in my case 5 times what I am actually going to get, let alone I have paid in twice as much money over the years that was agreed and still paying, 4 years more.

gadgetmind

Just_landed wrote: »

ISA‘s rule OK

Only if invested in better performing assets than a pension, and given the tax relief it would have to be *much* better performing.

If you could do that with an ISA, why didn't you do it with your pension?

Did you do it with an ISA?

jamesd

Just_landed wrote: »

There was a calculator on the Web can't think where at the moment, typed in how much paid in each month along with the number of years and it came up with the % age. think growth.

Good to read. Well, bad to read, but at least the calculation makes sense.

Just_landed

If you could do that with an ISA, why didn't you do it with your pension?

Did you do it with an ISA?[/QUOTE]

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(Double glazing salesman springs to mind) I trusted the Pension seller, in it's day it was is a notable outfit. OK I should trust "NO ONE "you live and learn. I would never pay into a pension ever ever again :- Unless I was at least a 40% TAX payer & employed with the employer at least paying = to what I paid in, bearing in mind it didn't affect the gross wage. As to doing (with an ISA) I have been playing with the stocks & share ISA's since I stopped working so have the time to study and understand how to win / lose buying and selling shares, none of this fund caper where everybody else makes the profit but yourself. The cash ISA side is so straight forward check they are covered by the £85000 then pick the best % fixed, then forget until the the fixed term is up that's the easiest one.

:wall:

Just_landed

Anyway all these posts do not help me decide what my original question was and where I need help. >

(My question is what are the views of folk on this forum of how much I might lose by waiting until after the 21 December in other words to buy or not to buy ?) <

Is there anyone who can throw light on this please ?