Advice on ReAssure pension

Clare43

I have a pension with ReAssure ( previously HSBC ). Recently got the annual statement and have got the option to switch funds and save on charges. My current fund is balanced pension accumulator series 01 which has an annual management charge of 1%. The funds they are offering to switch to have a 0.65% charge. The main difference is my current fund is actively managed but the new one would be passively managed. I'm wondering if it's better to be in the actively managed one even with higher charges ? The new funds I can choose from are a deposit fund which is classed as minimal risk, a corporate bond fund which is low risk or a UK global equity tracker fund - medium / high risk. This pension is not my main pension ( NHS ) and is only a small extra one I started when I was young. I'm currently 44 and £480 gross goes into this pension each year.

dunstonh

Recently got the annual statement and have got the option to switch funds and save on charges.

Although charges are a secondary consideration to the suitability of the investments. No point paying less if you knacker your growth potential in the process. After all, the difference in the annual charges are likely to be little more than 15 minutes performance on the markets.

The main difference is my current fund is actively managed but the new one would be passively managed.

Which explains the reduction in charge.

I'm wondering if it's better to be in the actively managed one even with higher charges ?

Depends on the quality of the active passive vs the active managed. Does the potential and investment style make the extra charges worthwhile or not?

The new funds I can choose from are a deposit fund which is classed as minimal risk, a corporate bond fund which is low risk or a UK global equity tracker fund - medium / high risk.

These are single sector funds which are meant to be held as a wider portfolio of funds. Not really to be used by inexperienced investors.

bigadaj

Clare43 wrote: »

I have a pension with ReAssure ( previously HSBC ). Recently got the annual statement and have got the option to switch funds and save on charges. My current fund is balanced pension accumulator series 01 which has an annual management charge of 1%. The funds they are offering to switch to have a 0.65% charge. The main difference is my current fund is actively managed but the new one would be passively managed. I'm wondering if it's better to be in the actively managed one even with higher charges ? The new funds I can choose from are a deposit fund which is classed as minimal risk, a corporate bond fund which is low risk or a UK global equity tracker fund - medium / high risk. This pension is not my main pension ( NHS ) and is only a small extra one I started when I was young. I'm currently 44 and £480 gross goes into this pension each year.

Is this a good time to determine whether a transfer into a more modern plan might be appropriate?

It sounds as though there aren't any guarantees associated with the product, in which case the current product has average to currently quite expensive fees and a very limited fund range.

Personal pensions with better investment alternatives are available from the bug insurers through discount brokers for a bit less than your new charges, and you have the choice of paying less for trackers or more for active funds.

For the same or a bit less than the new fee you could open a sipp and have a huge range of funds to choose from, just though it worth mentioning as you don't have to stick where you are.

Clare43

dunstonh wrote: »

Depends on the quality of the active passive vs the active managed. Does the potential and investment style make the extra charges worthwhile or not?



These are single sector funds which are meant to be held as a wider portfolio of funds. Not really to be used by inexperienced investors.

To be honest I don't know that much about pensions so don't really know if the investment style makes the extra charges worth it I don't have a portfolio of funds for my pension. My main pension is my NHS one, this is just a small other pension I started when I was much younger

Clare43

bigadaj wrote: »

Is this a good time to determine whether a transfer into a more modern plan might be appropriate?

It sounds as though there aren't any guarantees associated with the product, in which case the current product has average to currently quite expensive fees and a very limited fund range.

Personal pensions with better investment alternatives are available from the bug insurers through discount brokers for a bit less than your new charges, and you have the choice of paying less for trackers or more for active funds.

For the same or a bit less than the new fee you could open a sipp and have a huge range of funds to choose from, just though it worth mentioning as you don't have to stick where you are.

To be honest I really wouldn't know where to start

neilvw

Clare43 wrote: »

I have a pension with ReAssure ( previously HSBC ). Recently got the annual statement and have got the option to switch funds and save on charges. My current fund is balanced pension accumulator series 01 which has an annual management charge of 1%. The funds they are offering to switch to have a 0.65% charge. The main difference is my current fund is actively managed but the new one would be passively managed. I'm wondering if it's better to be in the actively managed one even with higher charges ? The new funds I can choose from are a deposit fund which is classed as minimal risk, a corporate bond fund which is low risk or a UK global equity tracker fund - medium / high risk. This pension is not my main pension ( NHS ) and is only a small extra one I started when I was young. I'm currently 44 and £480 gross goes into this pension each year.

Fund has outperformed its sector over 1, 3, 5 and 10 years.. you could do worse.

https://www.trustnet.com/Tools/Charting.aspx?typeCode=P_FGLW3,XP:BAL,

Has about 74% equity (company shares) content.

https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=MIBP&univ=P

Clare43

neilvw wrote: »

Fund has outperformed its sector over 1, 3, 5 and 10 years.. you could do worse.

https://www.trustnet.com/Tools/Charting.aspx?typeCode=P_FGLW3,XP:BAL,

Has about 74% equity (company shares) content.

https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=MIBP&univ=P

Thank you. Helpful information

kidmugsy

bigadaj wrote: »

from the bug insurers

Is that a reference to Scottish Black Widows?