Company Pensions and SIPPs

Jack_Griffin

dunstonh wrote: »

Pensions are very low profit pre RDR. Stakeholder pensions were a loss leader in general as many providers took 7-15 years to breakeven. Indeed, the RU64 charges in 2001 saw many insurers close their doors to new business in the following years as they could no longer be profitable offering new business under those constraints. Things have moved on a bit since then and it can be profitable now to offer pensions again but its not exactly an area with a big margin compared with other retail products.

Man speak in unknown acronyns. RDR? Do you mean this, whatever the devil that is?
http://en.wikipedia.org/wiki/Retail_Distribution_Review#Retail_consumers

jem16

Jack_Griffin wrote: »

Man speak in unknown acronyns. RDR? Do you mean this, whatever the devil that is?

Your link explains it clearly assuming you have read it.

Where have you been? It's been discussed on here at length.

alexanderalexander

sh856531 wrote: »

It does seem insane when you consider the amount of money involved. The pension companies must be making out like bandits. They charge lets say 1% of everyone's pension funds per year and achieve a performance level that I would charitably call "embarrassing".

I will be very very relieved if it is possible to do a partial transfer. I'll hopefully have the presence of mind to remember to do it every 6 months or so. Unless I'm being unduly harsh - the consequences of not doing this seem to be huge

Many thanks

S

Personally I am not so bothered about the fees (in fact, for me the fees will probably work out on balance very slightly more expensive in my SIPP than in my Scottish Widows pension) but much more about the restricted investment choice. I would like to get my money into a few long-standing top-performing investment trusts rather than the handful of rather moribund funds which Scottish Widows offers.

OP, I would be very interested in knowing whether this works out for you. If you are going to give it a go then I would be grateful if you could keep us updated on the results on this thread (or PM me if you prefer).

guitarman001

My advisor drives a maserati! I don't know if I read wrong, but my new pension doc said his commission out of £500 input a month is £25... Surely not.......!!! Would rather bypass him and go straight into a SIPP myself.

guitarman001

Defo got that wrong. Commission not stated but he only gets it when I put in more than £25 a month, and it comes out of the fund AMC. If it's a % then it's no wonder he wanted me to go for higher fee funds!

Jack_Griffin

jem16 wrote: »

Your link explains it clearly assuming you have read it.

Where have you been? It's been discussed on here at length.

Idiot. People don't know these things if they are just casual users and I think it is the first time I've come across this term in a month of regular use. I'm perfectly capable of looking things up myself, but a bit fed up of the incessant acronym speak.

Can I interest you in a course on effective communications and irony?

jem16

Jack_Griffin wrote: »

Can I interest you in a course on effective communications and irony?

Not if it's the course you have been on.

bigadaj

Jack_Griffin wrote: »

Idiot. People don't know these things if they are just casual users and I think it is the first time I've come across this term in a month of regular use. I'm perfectly capable of looking things up myself, but a bit fed up of the incessant acronym speak.

Can I interest you in a course on effective communications and irony?

Rdr is probably one of the the most common acronyms used for the last couple of years, if your initial point has simply been a clarification then that might have gone done better.

My theory is that so long as you can pick up say a dozen of the most common acronyms in any profession or business areas then you could probably get a job and be moderately successful!