Retirement and annuities

dunstonh

however I assume the provider decides on the specific investments

You or your adviser selects the investments based on your risk profile, capacity for loss, knowledge and understanding and timescale.

I know I can check individual providers but I wondered if there is a comparison site.

No. That isnt how it works.

I suppose I've heard of people losing large amounts from their pensions

It is unusual but only happens where people use unregulated companies and deal in unregulated areas and get scammed.

want to go with a company with a good record of maintaining or increasing the value, subject to market fluctuations.

Again, that it is the investment, not the pension. Staying mainstream does make sense. However as long as you avoid cold calls and unusual investment types, you should be fine.

usignuolo

...I've heard of people losing large amounts from their pensions....

maybe we should distinguish between funds with disappointing returns compared to the original forecasts promised to the investor (due to poor stock market performance, management charges etc) and losses due to embezzlement or frauds. There may be few of the latter but there are certainly plenty of the former.

For example:
Daily Telegraph September 2013

"Abbey plan not worth a bean"

Martin Williams, 37, was forced to forfeit 53pc of his entire pension pot simply to withdraw it from a dud scheme and move it somewhere better. The IT consultant had built up £6,677 of savings in a personal pension set up with Abbey Life in 1997. He has since founded his own business, Camford Management Consultants.

"When he asked his financial adviser, Holder & Combes, to look over pensions from various employers, the firm uncovered outrageous charges. For example, Mr Williams was paying £28 each time he wanted to move between just 14 fund options – many of which were in any case poor.

"Leaving Abbey cut his pot to £3,650, but Holder & Combes estimated that he would still be £4,000 better off at retirement thanks to lower ongoing charges – even if he made no further contributions. His pot has grown by 13pc in a year since. Mr Williams said: “It was tough, but had I left the pension it would barely have bought a cup of coffee by the time I retired.”

http://www.telegraph.co.uk/finance/personalfinance/pensions/10323908/I-lost-half-of-my-pension.html

kidmugsy

usignuolo wrote: »

the original forecasts promised to the investor

I doubt that "promised" is the right verb: a forecast is just a forecast. Do you think the Met Office promises sunshine?


If you invest tiny amounts with a notorious high-charger like Abbey, you naturally end up with charges cutting heavily into your capital. He was, to use the technical term, a mug. Still, I got a good laugh out of "He has since founded his own business, Camford Management Consultants."

usignuolo

kidmugsy wrote: »

I doubt that "promised" is the right verb: a forecast is just a forecast. Do you think the Met Office promises sunshine?


If you invest tiny amounts with a notorious high-charger like Abbey, you naturally end up with charges cutting heavily into your capital. He was, to use the technical term, a mug. Still, I got a good laugh out of "He has since founded his own business, Camford Management Consultants."

The guy is an IT consultant - why should he know about pension providers and who is good or bad in terms of charges? Where is Good Pension Advisors list to consult? I happen to know someone in IT as a self employed consultant who was advised by their accountants to take out a pension with Abbey Life.

In any case the point I was making was the OP in saying that he had heard about people losing a lot of their forecast pension, might have been thinking of such cases.

dunstonh

The guy is an IT consultant - why should he know about pension providers and who is good or bad in terms of charges?

He doesnt have to. its no different to any purchase made or service bought. You either learn or you dont. You either DIY or you get someone to do it for you.

Where is Good Pension Advisors list to consult?

https://www.unbiased.co.uk is the main database.

I happen to know someone in IT as a self employed consultant who was advised by their accountants to take out a pension with Abbey Life.

Abbey Life havent been trading for new business for nearly 15 years. Plus, an accountant shouldnt be getting involved in regulated advice. Although many do operate an advice arm or have local arrangements with advisers to act on referral basis.

In any case the point I was making was the OP in saying that he had heard about people losing a lot of their forecast pension, might have been thinking of such cases.

What cases?

Abbey Life was expensive by todays standards but normal for the period they traded. I have reviewed many Abbey Life plans over the years and frequently the advice was not to move them as they are best left put. The only people that may have lost out are those that bought them but only paid in for a couple of years and never paid enough to much past the initial charge period.

zagfles

jem16 wrote: »

At the moment you have to have guaranteed secured income of £12kpa to qualify for flexible drawdown. If you don't have that then it's capped drawdown.

But if you wait till next April everyone can use flexible drawdown regardless of income.

jem16

zagfles wrote: »

But if you wait till next April everyone can use flexible drawdown regardless of income.

True but as the OP seems to be looking now, I gave current rules.