Newbie in need of pension advice

Murphy_

Hi everyone, I am looking for some advice on what to do with my pensions.

I'm 28, a basic rate taxpayer and currently renting acomodation with no dependents.

I currently have two tiny pensions...

(OLD) AEGON - Universal Lifestyle (£3,032.43)

(CURRENT) Standard Life Strategic - Lifestyle Passive 3 (£1,444.19)

My employer will match contributions up to 3% and this month I have increased my contribution from 3% to 6%. Ideally I would like to be contributing more but I am trying to save for a house deposit.

I have a couple of questions that I would be grateful for some advice on.

1. Would I be best to transfer the Aegon pension into Standard Life and are there likely to be charges associated with this?

[LIST=2]
[*]Is the Lifestyle Passive 3 a good fund for someone my age? This was chosen automaticly and I am wondering whether it would be worthwhile to increase the risk level to say 4 or 5?
[/LIST]

I have also started a S+S ISA with CSD to invest £100pm into the Vanguard Lifestrategy 80 fund. Should this effect what risk profile I choose for my pension?

atush

What are the charges like on the old pension? How do they compare with the new?

How has that fund performed in the last 1-5 years?

I dont know that particular fund (I have trustnet open but am researching my own lol so dont want to change the page). So what % equities is it? For someone your age I would say the received wisdom is to be heavy in equities ie 80-100%.

kidmugsy

Murphy_ wrote: »

I'm 28, a basic rate taxpayer and currently renting acomodation with no dependents.

I currently have two tiny pensions...

(OLD) AEGON - Universal Lifestyle (£3,032.43)

(CURRENT) Standard Life Strategic - Lifestyle Passive 3 (£1,444.19)

That's better than nothing.

Murphy_ wrote: »

My employer will match contributions up to 3% and this month I have increased my contribution from 3% to 6%. Ideally I would like to be contributing more but I am trying to save for a house deposit.

Then cut back your own pension contribution to 3%, and save for a deposit. You're only 28: chances to save for a pension on better terms are likely to occur in future; do it then. Exception: if your scheme is by Salary Sacrifice -but you'd have told us that, wouldn't you?

Murphy_

atush wrote: »

What are the charges like on the old pension? How do they compare with the new?

How has that fund performed in the last 1-5 years?

I dont know that particular fund (I have trustnet open but am researching my own lol so dont want to change the page). So what % equities is it? For someone your age I would say the received wisdom is to be heavy in equities ie 80-100%.

Thanks atush. Your post has made me aware of the things I should be checking. I will take a look on trustnet and start comparing the funds.

Murphy_

kidmugsy wrote: »

That's better than nothing.




Then cut back your own pension contribution to 3%, and save for a deposit. You're only 28: chances to save for a pension on better terms are likely to occur in future; do it then. Exception: if your scheme is by Salary Sacrifice -but you'd have told us that, wouldn't you?

Thanks kidmugsy and yes, I forgot to mention my scheme is by Salary Sacrifice.

xylophone

If you are a first time buyer saving for a deposit, you might want to look at the new FTB ISA?

You might also consider whether to use current accounts to your best advantage.

https://forums.moneysavingexpert.com/discussion/comment/67987327#Comment_67987327 post 2.

Have you looked at Santander 123?

kidmugsy

Murphy_ wrote: »

Thanks kidmugsy and yes, I forgot to mention my scheme is by Salary Sacrifice.

Then you have a ticklish decision to make. Contributing the first 3% is a must-do. The second 3% is trickier because SS terms are attractive and might not be beaten in future. Still, if you want a deposit for a house, that's what you want.