Pension Advice

berbatov10

This is a follow on to a previous post on the same subject. I have a local govt. pension and can retire at 58. My OH has no pension. I have another pension which I have never made any contributions to which is a pot of around £10,000 which is held by Friends life, I understand this has not been the best performing. If I were to move this pot and contribute £500 per month for the next 5- 7 years what sort of growth could I expect and could I take 25% of it tax free at that time.
The small pot I hold is Friends Life FL RAINBOW MANAGED I 1% EP. I have looked it up but am unable to see how it is performing and thus worth contributing to. Any advice is welcome

TH1878

berbatov10 wrote: »

This is a follow on to a previous post on the same subject. I have a local govt. pension and can retire at 58. My OH has no pension. I have another pension which I have never made any contributions to which is a pot of around £10,000 which is held by Friends life, I understand this has not been the best performing. If I were to move this pot and contribute £500 per month for the next 5- 7 years what sort of growth could I expect and could I take 25% of it tax free at that time.
The small pot I hold is Friends Life FL RAINBOW MANAGED I 1% EP. I have looked it up but am unable to see how it is performing and thus worth contributing to. Any advice is welcome

http://www.morningstar.co.uk/uk/snapshot/snapshot.aspx?id=VAUSA064DS&InvestmentType=SA

dunstonh

I understand this has not been the best performing.

It outperformed its benchmark in 4 of the last 5 years. Its a multi-asset fund and ideally suited for an inexperienced investor. So, why do you think it is not performing?

berbatov10

Dunston I had a look on the FE index and it didnt rate it very highly. I note you seem to be quite au fait with financial matters (not withstanding your disclaimer) might I ask what you may consider doing? Topping up and leaving it alone or moving it?

TH1878

berbatov - fund performance aside...(and it looks like a decent performer) why don't you consider paying into a pension for your wife?

Will allow you to make use of two personal allowances when you draw it in the future.

dunstonh

Dunston I had a look on the FE index and it didnt rate it very highly.

Possible multiple reasons.
1 - its a pension fund
2 - its a legacy fund (so provider will not be active in promoting it or providing third party data companies with information for them to assess the fund)
3 - Trustnet appear to be benchmarking it against 40-85% equity unit trust/oeic funds whereas Morningstar are benchmarking it against 40-85% equity pension funds.
4 - Trustnet are using the capital units version and not the accumulation units version (capital units carry higher charges) - if you click on the acc units version, it takes you to the cap units version.

might I ask what you may consider doing? Topping up and leaving it alone or moving it?

You wouldnt believe the amount of research and due diligence advisers have to carry out. There isnt enough to go on. However, I would be more interested in the product terms (any guarantees etc, costs; 1% may be the base fee but it could have discounts based on fund size or commission terms) before looking at any switch

atush

TH1878 wrote: »

berbatov - fund performance aside...(and it looks like a decent performer) why don't you consider paying into a pension for your wife?

Will allow you to make use of two personal allowances when you draw it in the future.

Yes, this is what I w as going to post. She will have a PA that will go to waste if she doesn't have one. Why pay more tax than you need to as a household?

berbatov10

Guys thank you very much for your help and input. The OH does have a small personal pension from when she worked in the city 20 odd years ago so will look at that, what its worth and how much I can top it up. Dunston H thanks for the advice keep it coming all of you.

hyubh

berbatov10 wrote: »

I have a local govt. pension and can retire at 58.

You sure about that? (Maybe you are...)

TH1878

berbatov10 wrote: »

Guys thank you very much for your help and input. The OH does have a small personal pension from when she worked in the city 20 odd years ago so will look at that, what its worth and how much I can top it up. Dunston H thanks for the advice keep it coming all of you.

Unlikely to be in your best interests as it will most probably be highly charged. I'd consider starting a new one.

berbatov10

Reading the updates maybe leave the small pot in place and as advised start from new.That is the same problem with my own FL Rainbow pension, top it up or start afresh?? I looked at HL (who I have other funds with) and one of the SIPP pensions on there but using their suggested funds. IE you put what you want to invest into a caalculator and it suggests funds to invest in