With Profits - thoughts ?

lentrix92

Sorry if i am duplicating myself as im also on a seperate thread.

Im thinking of transfering a pension away from Standard Life but it has a 'with profits' element to it. Although not large - the bonus paid this year seemed ok and more than covered the AMC of the fund.

Therefore is it worth sticking with the provider due to this or are with pfts perfomance so bad that switching to a better performer more than outweight the bonus received ???

Thanks

tony4147

I will be interested to hear what replies you get on this question.

Be careful I have two 'with profit' pensions with SL, when SL floated I was given a guaranteed growth rate of 4% per year on one of the funds, think it's the 'pension with profits' fund.
I also have money in the 'pension millennium' fund, this has a guarantee of not going down before charges.

Check if you have this before you do anything.

Linton

Some with profits are poor performers, some are reasonable considering their very low risk. Some have guarantees and some have costs for early withdrawal. There isnt a general view one can take, its very dependent on the provider. So if your one is delivering a useful return I would keep it, all other things being equal. Perhaps regard it as a justification for increasing risk elsewhere.

lentrix92

tony4147 wrote: »

I will be interested to hear what replies you get on this question.

Be careful I have two 'with profit' pensions with SL, when SL floated I was given a guaranteed growth rate of 4% per year on one of the funds, think it's the 'pension with profits' fund.
I also have money in the 'pension millennium' fund, this has a guarantee of not going down before charges.

Check if you have this before you do anything.

Mine are the Millennium & 'with pft' funds as well.Both taken out in 2000.

tony4147

lentrix92 wrote: »

Mine are the Millennium & 'with pft' funds as well.Both taken out in 2000.

Then your in the same boat as me, I have been thinking of doing something with these for a couple of years, but don't know if 4% (pension with profits) is a good return or not.
I'm not too happy with the millennium fund as if I recall that only made 1 or 1.5% last year.

But plenty of people have lost considerable amounts in the last few years.

tony4147

Linton wrote: »

Some with profits are poor performers, some are reasonable considering their very low risk. Some have guarantees and some have costs for early withdrawal. There isnt a general view one can take, its very dependent on the provider. So if your one is delivering a useful return I would keep it, all other things being equal. Perhaps regard it as a justification for increasing risk elsewhere.

What would you call a reasonable return?

atush

We have one small WP pension (around 41K) and have thought of transferring it to a SIPP (as it carries no guarantees.

But during the downturn, it did well compared to other pensions. Will be transferring it now though.

Linton

tony4147 wrote: »

What would you call a reasonable return?

I have one pension WP fund, dont know with whom as it is badged under my old employer's name, that has returned a steady 4% for the past few years, though its long term average for the past 20 years is 5.8%. Also a non pension Prudential WP bond which has averaged 5.3% over 10 years taking into account the current Terminal Bonus. I am not planning to sell either.

lentrix92

Recent With Profits newsletter from Standard Life (see link)

http://www.standardlife.co.uk/1/content/resources/uk_internet/PDFs/Retail/wp3.pdf

lentrix92

And Fund report:

http://www.standardlife.co.uk/1/content/resources/uk_internet/PDFs/Retail/wp97.pdf

tony4147

lentrix92 wrote: »

Recent With Profits newsletter from Standard Life (see link)

http://www.standardlife.co.uk/1/content/resources/uk_internet/PDFs/Retail/wp3.pdf

Yep, I not happy with the millennium fund, doesn't appear to be going anywhere except downwards.:mad: