Pension Freedom

bigadaj

gadgetmind wrote: »

I've never really understood massive home bias nor large cap bias. The is particularly true in the UK given how our large caps are concentrated into just a few sectors like digging and oil.

I don't agree with it but I can understand it.

People feel comfort in big names they've heard of, and this may lead to concentration of investment risk.

gadgetmind

My wife does have a portfolio of (mostly) large caps but with no more than 10% in any one sector. It's also only 5% of our investments so just a bit of fun really.

It's also thrashed the FTSE All Share since 2011 (when I started it) but let's put that down to luck!

netg

Thanks for your replies, which has helped clear that idea up, I did say it might be a stupid question!

As an investment-newbie I must admit I don't know where to start with choosing the right investment, and with the exception of you guys, I think the average person would probably be in the same boat as me, or worse not have a pension in the first place. So I guess more reading up is due..

PS - I also read with interest the detailed dissection of my tongue-in-cheek bankers jibe, and have noted I need to be more accurate with jibes in future, who knew?!

stoddy2k01

May i ask if anybody knows this. I am going to take my pension in full when i am 55. lets say its worth £50.000 I'm aware of the Taxes etc. But my question is this. Do i have to use a financial advisor to arrange this or can i do it myself by means of getting a fund value/contact my pension provider to accept the offer when it arrives. and that is it or do i have to use a financial advisor to sign it off?

thank you in advance.

gadgetmind

What kind of pension is it and who's the provider?

And you say "I am going to" but why have you made this decision? It's more than likely not the best decision, so what's behind your thinking?

stoddy2k01

I'm with Aegon and my wife has a large pension in 5yrs this pot was set up just for a Brucie bonus. And wish to draw it all we have an endowment too which matures. It is a Flexible Personal Pension

gadgetmind

Sounds like you should be able to draw it all, with 25% tax free and the rest taxed as 20%/40%/whatever%. Either do this directly with Aegon or transfer if they get sniffy.

Just be aware that you can use UFPLS ( Uncrystallised funds pension lump sum) to still withdraw 100% of the pension but you do it in a few chunks to keep the tax down. This also has other tax advantages if you fall under the number 23 bus as the pension not yet accessed is outside of your estate.

stoddy2k01

Thanks for that. Would you know if I have to use a fininacial advisor or not. Because I don't want to pay him £150 an hr for nothing.

gadgetmind

You'd need to ask Aegon if they allow UFPLS from that pension. If they don't, then you can transfer it elsewhere, but many providers will change a fee if you transfer to them and then withdraw everything.

dunstonh

Aegon will allow it without an adviser on their flexible personal pension scheme. That plan had no safeguarded benefits.