advice about my pension please

dunstonh

That is why its law for the providers to tell their clients to seek independent advice from an FCA regulated source.

There is no such law.

It is free to get your pension reviewed,

No it is not. That is where scams exist.

My job is to introduce clients to regulated IFA'S

Your post has been copied and I have forwarded a copy to the FCA for breach of guidelines.

Good_bad_and_ugly

The stuff in James' post about free reviews or 'having' to get reviews is pretty old hat. Let's face it, a review can be detailed and great value, a client can walk away and it is free. Take up the offer of further work, and you'll want to ensure there is no padding out of the bill.

Similarly, post Budget 2014, some companies do insist that a saver takes advice (such is the parlous state of a litigious society) before transacting business.

What interested me was the concept of putting the client first, fiduciary responsibility. This of course, an idea gaining modest traction, but currently, not extant. Should it be, I wonder.

James is probably an enthusiastic, unregulated lead generator on high commission terms and I have no doubt that some of his leads end up in poor outcomes for savers. I am surprised that his post remains in view.

atush

OP, so the pension you refused not only has FREE MONEY, it also has 32% tax relief. So every 100 in your pension (contributed by you not RM) will have cost you only 68 quid.

If they match your contribution, you would get 200 into your pension at a cost to you of 68.

That is a mind boggling amt of money to turn down. REally really really unwise. Dare I say silly.

nikanika0

I understand it's turning down good offer, but I work part-time hours with no chance being full time. I put money into S&S ISA every month, the only reason why I started this thread is that the pension acc is performing rather well in my opinion (12%) and with bit of money it may grow further.
I really can't contribute a lot on weekly basis. I'll have to look into it properly.

dunstonh

I understand it's turning down good offer, but I work part-time hours with no chance being full time.

Irrelevant. £ for £, the pension trumps what you could do.

I put money into S&S ISA every month, the only reason why I started this thread is that the pension acc is performing rather well in my opinion (12%)

1 - you havent suffered any real negative periods. So, until you invest through a whole economic cycle, that means nothing
2 - The pension would have beaten that 12% in terms of benefits vs cost to you

You are totally insane not to join the pension but consider a personal pension or ISA.

patanne

You seem to have made up your mind not to contribute to the pension. I suppose the plus side to this is that as you are a cheaper than average employee, you are likely to keep your job for longer if there are cuts happening.

Just so you are in no doubt - this is a really, really, really BAD decision.

You are prepared to ignore Atush, Dunstonh, Jem & Xylophone's (alpha to avoid any bias) advice. 4 of the most respected posters on here! You will regret this, hopefully soon enough to redeem the situation.

kidmugsy

Beleaguered taxpayers rejoice!

SJD48

dunstonh wrote: »

SIPPs are an advanced product for experienced investors looking for more advanced investment options that are not available on stakeholder pensions or most personal pensions.

lets take it back to basics. Why do you think a SIPP is suitable for you?

SIPP options are not that difficult these days.

I do invest in equities as I have a decent knowledge around that but there are so many tracker funds out there now where you can get a broad spread of investments extremely cheaply.

Vanguard funds are worth a look. Low charges and easy and cheap to buy if you buy on a regular investment within a SIPP.

dunstonh

SIPP options are not that difficult these days.

Put 30,000 investment options in front of a novice and think of the damage they could do.

I do invest in equities as I have a decent knowledge around that but there are so many tracker funds out there now where you can get a broad spread of investments extremely cheaply.

None of which require a SIPP. Plenty of personal pensions and some stakeholders offer trackers and the cost of these can be on par with SIPPs (or lower in case you pick an expensive SIPP). Plus running single sector funds requires ongoing reviews and rebalancing and building to a strategy. Hopefully not random picks. Is the average novice going to do that?

Most novices are best served with mutli-asset funds and personal pensions do actually tend to do these very well.

In the case of the OP, a SIPP would be a totally daft idea and would be throwing money away.

SJD48

dunstonh wrote: »

Put 30,000 investment options in front of a novice and think of the damage they could do.



None of which require a SIPP. Plenty of personal pensions and some stakeholders offer trackers and the cost of these can be on par with SIPPs (or lower in case you pick an expensive SIPP). Plus running single sector funds requires ongoing reviews and rebalancing and building to a strategy. Hopefully not random picks. Is the average novice going to do that?

Most novices are best served with mutli-asset funds and personal pensions do actually tend to do these very well.

In the case of the OP, a SIPP would be a totally daft idea and would be throwing money away.

The purpose of suggesting a SIPP was for trackers/passive funds with fees of sub 0.2% vs a multi asset fund with 1.0%+ pa fee to the fund manager. My SIPP fee is £25 per quarter

Hardly throwing money away but actually saving a large amount for the right people.