Skandia Collective Retirement Account?

Mr_Proctalgia

I have a small (by most standards) Crystallised sum in this platform, it is in Capped Drawdown, it has done well I think. Insofar as it has provided me with a lump sum and a monthly income and has actually increased in value year on year.

I have checked and I am receiving 120% of GAD @ 3.25% Luckily I am still on the 5 year review so have another 2 years to go (I think - Willing to be corrected and still learning about all of this stuff)

I have recently received my 6 monthly statement and was looking at all the pages of charges etc etc are these reasonable in todays market - I looked on the Skandia Adviser web pages and they spelled it all out but as my little pot is spread over some 18 different funds could it be doing better elsewhere, are the charges reasonable and if I asked for a review of my funds would I lose income as the % in now lower?

The reason I ask is that I am coming to the age when pensions are blowing my frock up and I need to up my ante, I am saving all I can via avc's into the company scheme and am starting to think about where to put the final pot.

Thanks in advance

mania112

I believe the Skandia CRA costs £68.50 per year, which is quite good, i'd say. (plus the costs of funds).

But it's hard to compare to others because most are charged as a percentage.

The GAD fell to 100% in April 2011 (and the reference period change to 3 years at the same time) - so it's possible to still be 120% and to have missed the drop.

Before thinking about 'moving' your company scheme you need to be sure what benefits you will be giving up if you do so. If your company pension is a final salary, it's very likely you should not consider moving it.

dunstonh

Skandia have three charges versions. The £68.50 is the old one and is very very good value for money. There is a middle option that was temporary between RDR and platform review and an unbundled version which will be the only version available soon.

Mr_Proctalgia

My company scheme is DC and with Legal and General - There is a limited choice of funds (IIRC 12) and three "lifestyle" options. I pay AVC's because the AMC is effectively sod all and I stick all my available money into one fund, FTSE All Share 50% ROW50% - It is a bumpy ride but so far ok.

I now present my "Cunning Plan" As I said in an earlier post I earn little but spend less So I have transferred part of my Tax Free Allownace over to cover my little pension so I receive it gross and have increased my AVC's by a similar amount in the hope of getting a cheaper way into investing for my dotage.

I shall receive a considerable (for me at least) boost in 2 years when my deferred AFPS75 pension comes into payment and I hope to pay even more into my company pension by using the same methods. I.E. I know my outgoings and can guess fairly accuratly at my income - It is a case of being wise with the difference. I try to manage by being just above the Annual Allowance and still manage to save a little in that scenario too.

My State Pension is currenly forcast at nearly £8k pa and I have over 40 years contributions with maybe another 3 years to go before the rules change. My AFPS will be just under £5k at commencment.
I hope to start to slide into retirement in two years and drop to a 30 hour week for 2 years then on to a 24 hour week etc etc. The sums indicate that with the reductions in tax and NI it isn't too expensive a thing to do.

I do not intend to move any of my Company Pension to anywhere yet, it feels cheap to run, however, whether it is optimal, it not yet known, maybe I should invest outside of it, I could input into the Skandia scheme in 1K lumps or I could start yet another pension - I have no idea what is cheap to run (and that is my crux - cheap seems to do better. But bless my IFA and his little cotton socks he has done me well so
far.
My hope is to gain another 50K to put into another income stream by the time I receive my State Pension age. My fixed outgoings are £300 pcm and I realistically need about £500pcm to live on overall.

I realise that some of you will say "!!!!!!" over these figures but where I live it is cheap and there are no jobs, a house (3 beds) can be had for around £65K and living is cheap - I do however, enjoy my little holidays.

With regards.

Mr_Proctalgia

Thanks for that Dunstonh -My charge basis is 1w ill this have "Grandfather Rights" do you think?

dunstonh

I pay AVC's because the AMC is effectively sod all and I stick all my available money into one fund, FTSE All Share 50% ROW50% - It is a bumpy ride but so far ok.

You need to check what "sod all" is because Skandia offer the blackrock class D funds on the legacy charge method and they tend to have TERs of around 0.2x% p.a. The second and third pricing options offer the Vanguard trackers.

I have no idea what is cheap to run (and that is my crux - cheap seems to do better.

Your AVC is high risk. Chances are your Skandia is not as high risk as that. Adviser recommended funds should be done after risk profiling and it is unlikely (but possible) you would come in with a high risk profile to match what you are doing on the AVC. Lower risk, means lower volatility. However, over the long term, it is probable that higher risk would outperform lower risk. In the short term or even medium term, it may not.

My charge basis is 1w ill this have "Grandfather Rights" do you think?

They will have to make some changes by 2016 as that was the date the FCA gave for existing business.