Standard life pension vs people pension?

Topcat07

I know this is very very vague but

What would be the best pension option?

As I understand people's pension is for none profit?

I asked the financial advisor who came iinto work but they shot the new government one down straight away. I'm guessing commission had its part to play there

The standard life is a group personal pension which they stated had admin fee of 0.6 percent a year but the documents state 1 percent annual admin charge

Can not help think but I have been lied to left right and

Sorry about any spelling on a phone

JoeCrystal

Ah, in that case, it is the company that doing it then? What are the employer's contribution if any?

Well, I assume you are referring to NEST? If so, it is rather poor in range of fund and the contribution charge of 1.8% for next few decades (to cover the cost of setting it up) but its AMC is 0.3%. So basically if let say you pay £100, instantly, it will become £98.20 in your pension fund.

You need to explain more about this. Was the financial advisor an IFA? Was a company setting it up? If you got concern about the annual admin charge, then ask them. That is what they are there for!

What kind of documents it is? I am not sure of the context you are in, thus the questions. Sorry about that. (Are you the company that setting a pension up for enrollment for example?)

Cheers,
Joe

jamesd

NEST is something to avoid if at all possible, including complaining to your employer if they insist on using it instead of something better. Just about anything is better.

The Standard Life group personal pension offers a fairly reasonable range of investments. To find out the actual charge you need to look at any discounts and be sure whether the price you're seeing for funds is before discounts or after them. SL documents will usually not include the discount, so will show a higher price.

Best to ask the adviser to explain why there's a difference in charges. It could be something as simple as that difference in where you're seeing them.

topcat007

I am the same poster topcat07 i just locked my account out earlier so using my old one

Thanks for getting back to me very much appreciated.

The offer by the company is currently a Standard life pension i have to pay a minimum of 2% in which is 1.6% after the tax free part. The employer contributes 3%

I didn't think of this "any discounts and be sure whether the price you're seeing for funds is before discounts or after them. SL documents will usually not include the discount, so will show a higher price."

so will be asking tomorrow hopefully the illustration at 1% is before any discounts are applied

Thank you for the explanation on NEST that is exactly the one i meant. Although i am unsure as to how it loses money as soon as i put it in how does £100 get to £98.20? ( i am not going to but if i did)

dunstonh

I asked the financial advisor who came iinto work but they shot the new government one down straight away. I'm guessing commission had its part to play there

There is no Government scheme. Plus, if the company is offering a group scheme then that is your choice. No hypothetical alternative.

The standard life is a group personal pension which they stated had admin fee of 0.6 percent a year but the documents state 1 percent annual admin charge

Std Life pre-printed docs print the default. The personal illustrations show the actual.

The offer by the company is currently a Standard life pension i have to pay a minimum of 2% in which is 1.6% after the tax free part. The employer contributes 3%

Absolute no brainer then.

topcat007

dunstonh wrote: »

There is no Government scheme. Plus, if the company is offering a group scheme then that is your choice. No hypothetical alternative.



Std Life pre-printed docs print the default. The personal illustrations show the actual.


Absolute no brainer then.

thank you very much excellent advice much appreciated :beer:

topcat007

dunstonh wrote: »

There is no Government scheme. Plus, if the company is offering a group scheme then that is your choice. No hypothetical alternative.



Std Life pre-printed docs print the default. The personal illustrations show the actual.


Absolute no brainer then.

quick question my personal illustration shows 1% is this on how much i contribute each year or it is charged on how big the pot is each year ? i have looked through a lot of paper working but failing to see anything

thank you :j

JoeCrystal

AMC is charged with on value of the fund.

dunstonh

A clue to the net effect of all charges is to look for the reduction in yield figure on the personal illustration. This takes all charges, irrespective of how they are made, and turns it into an average annual deduction.

It will say something along the lines that charges will in effect bring a 7% return down to 5.9%.

A 1.1% reduction would indicate a 1% annual management charge (it is 1.1% due to compounding). A 0.6% AMC would be either a 0.6% or 0.7% reduction.