Market leading pension product?

SallyG

Spurred on by this comment by dunstonh:
"Why would SW tell you what is best when they dont have a product that is a market leader?"

Which provider has a pension product that is a market leader?

Your_Hero

It depends how you define market leader. By cost? By product features? By investment choices?

Pincher

Market leading was what Equitable Life's With Profit scheme was hailed as for years, and the darling of Middle England. If you had retired in 1992, when annuity rate was 13%+, you too would be cruising into your 90s on Cunard's finest. This guy I met had all his faculties intact, and no Zimmer frames.


But as we all know, heading line products today is a 0.1% zombie account tomorrow.

dunstonh

Which provider has a pension product that is a market leader?

There is no one best option. What is best for one person can completely change the list of providers you look at and the criteria you use to get there. Costs, investment options, functionality can all impact on what is best.

SW brought out their retirement account and it can score well on pricing if you fit the right fund range and buy the cheapest investments. However, it lacks on functionality and the way it uses insured funds mixed in with UT/OEICs is awkward. It doesnt just use insured funds for its internal range (like Aviva does with its pension portfolio product). It uses insured funds for those that were available on its older personal pension product. So, if you wanted JPM Natural resources, you would end up with SW JPM Natural resources and not the UT/OEIC fund. One of the reasons people want to use more advanced pension options is to access the real investment fund and not some mirror fund with extra layers of charges (which may not always be obvious). SW JPM Natural resources has mirrored accurately but it has underperformed the OEIC version.

In terms of quality, there are better. In terms of options there are better. In terms of cost, there are usually better (but SW is stronger on that and will be up there if you limit yourself to low cost investments only and have the right amount in your fund or time to retirement to hit the sweet spot).

Generally, people wanting a few external fund links in addition to internal can usually get better elsewhere. Those wanting mostly external fund links or greater investment options will typically go fund supermarket nowadays. Those that want basic investment options as they dont understand investments will typically look at more basic products that offer better in-house solutions. Most IFAs would have an idea of the main providers/products that are likely to be best or thereabouts in the different areas. Some of that may be opinion based (service levels obtained, back office integration and reporting which some IFAs use but others dont etc). Some factually provable (i.e. cost).

kidmugsy

Pincher wrote: »

Market leading was what Equitable Life's With Profit scheme was hailed as for years, and the darling of Middle England.

At one point The Guardian was recommending With Profits at Eq Life because you'd get both excellent returns, and a pay-off when it demutualised.

dunstonh

kidmugsy wrote: »

At one point The Guardian was recommending With Profits at Eq Life because you'd get both excellent returns, and a pay-off when it demutualised.

The media has very short memories when it comes to its own mistakes. Consumer groups are often the same. The consumer association used to recommend Standard Life endowments. it would also tell its members to buy them on execution only basis to get a commission rebate or cost reduction. The consequence of that though is that they lost the ability to complain for mis-sale and the media/consumer groups dont have liability for advice they give.

Pincher

kidmugsy wrote: »

At one point The Guardian was recommending With Profits at Eq Life because you'd get both excellent returns, and a pay-off when it demutualised.

They may yet be proved right when I retire.


Being young and innocent, I did indeed put money into the Equitable Life With Profits scheme, and suffered the last 14 years in near zero growth and the threat of Market Value Adjustment if I leave.


Amazingly, the annual statements are showing growth again. As it is closed to new business, excess growth will be used for the benefit of the remaining members. If I'm really lucky, by the time I mature the policy, the final bonus will reflect a massive surplus in the pot. It could work like a tontine, the last one out gets THE LOT. I can see an Agatha Christie plot coming.


Get the list of surviving With Profits policy holders, and work my way down it. The twist is how to get another guy to take the blame, since everyone on the list is a suspect.

mania112

I quite like Scottish Life currently.

But then to add my reasons why and all the necessary caveats would take another 30 minutes!