Pension provider - default option

moneysavingexpert9

Looking for some thoughts on below...

Joined company pension 5 years ago in 30s and until recently did not realise contributions were being put into cash. Apparently this was the default fund until 2014. (When FSA? made the provider change the default to some fund with lifestyling). Correct me if I'm wrong, but I think I have no right to dispute the funds being saved in cash (As I did not elect any funds at start of pension). However is it right that following the change to the default fund my pension contributions should have still been moved to cash?

Should I raise this to the providers? Any advice appreciated.

bigadaj

It is odd if the default fund is a cash fund, this would normally be a relatively low risk multi asset fund. Might be worth noting who is the provider, and who has said this is the default fund the provider or your employer?

You could raise a s a complaint but with little chance of success I would propose, it's a little like keeping your cash in a 0.1% savings account rather than getting the 3-5% that is possible with some effort.

I don't understand your last sentence, are you saying that the pension was moved to a default fund and then back into cash?

Make contact with the provider and discuss this with them, and determine where you want is to be. If you are someone with a zero tolerance to any loss then cash would be the recommendation, however this would in all probability lead to lower returns over the typical life of a pension.

dunstonh

Correct me if I'm wrong, but I think I have no right to dispute the funds being saved in cash (As I did not elect any funds at start of pension).

Any complaint would be based on the rules and terms in place at the time of the event. Not future rule changes.

owever is it right that following the change to the default fund my pension contributions should have still been moved to cash?

It should remain in your elected fund unless you tell them different.

Should I raise this to the providers?

By all means raise it. However, there appears to be no wrongdoing here based solely on what you have said. Although we dont have access to the documentation you were issued which would be vital in any complaint consideration.

moneysavingexpert9

Appreciate you both taking time to respond. Will take this as lesson learnt to review/understand the annual statements, luckily it was picked up now rather than 20 years time. Will look to move to the default fund or research the choice of funds, although not a high risk taker, to leave in cash for many years does not make sense?

Provider is HL, yes I was surprised also that default was cash until last year and not a small employer either.

Just to answer above, the funds were always invested into cash even when the default fund was changed.

Many thanks again.