Newbie Pension Advice needed

HeirToCamelot

Hello pension gurus


Have just turned 55 and considering pension options. I have a modest Executive pension about 100K which I cant get my hand on in my current scheme so planning on transferring to something more flexible that would give me more options.


Am currently looking at Hargreaves & Landown ( mainly because they come up a lot on Internet searches!). There seem to be a huge number of funds to choose from with H&L so I guess I should spend some time looking into them. I'm thinking something quite unambitious short term maybe more bonds than shares does that make sense ?.


The way charges are structured it seems you pay H&L 0.45% for them to oversee the scheme then another amount for the fund you decide to invest in which can be up to 1% I assume this is fairly normal ?


Also I'm thinking it makes sense to take the 25% tax free lump sum asap as that means you get your hands on your money straight away even if you just invest it again - any thoughts on this and pensions in general would be much appreciated


thanks

dunstonh

I have a modest Executive pension about 100K which I cant get my hand on in my current scheme so planning on transferring to something more flexible that would give me more options.

Most EPPs have a safeguarded benefit. The potential for greater than 25% tax free cash. So, you will need an adviser to do that if the value is above £30k.

Am currently looking at Hargreaves & Landown ( mainly because they come up a lot on Internet searches!). There seem to be a huge number of funds to choose from with H&L so I guess I should spend some time looking into them. I'm thinking something quite unambitious short term maybe more bonds than shares does that make sense ?.

You havent stated what your objectives are. So, no-one can answer your question. Why are you thinking short term?

HL are an expensive platform in general. Your EPP could be lower cost. And have the potential for more than 25% TFC and may be better invested (an EPP uses insured funds and the scope to mess things up is low. A SIPP has 30,000 odd investment options with little or no due diligence. The scope to mess it up is significantly higher.

Also I'm thinking it makes sense to take the 25% tax free lump sum asap as that means you get your hands on your money straight away even if you just invest it again - any thoughts on this and pensions in general would be much appreciated

General rule of thumb is to not tax the tax free cash unless needed. So, what do you need it for?

HeirToCamelot

Many thanks dunstonh


1) Will find out if I am entitled to more than 25%


2) I am keen to transfer my current funds (sm growth & sm opportunity now managed by Phoenix) partly because their ratings seem really bad and I was told they are no longer actively managed - which I assume is generally not a good thing?


So my short term goal is to move it to another better rated fund that will be less volatile than the current one seems to be in light of Brexit chaos - hence I was thinking a fund that was based on bonds rather than shares - though don't know if this is true ?.


3) Also i'm looking to take some of it maybe 15-20% in the next 12 months for house improvements hence the desire for a scheme that I can draw from at 55.


thanks again

dunstonh

2) I am keen to transfer my current funds (sm growth & sm opportunity now managed by Phoenix) partly because their ratings seem really bad and I was told they are no longer actively managed - which I assume is generally not a good thing?

SM indicates Scottish Mutual as the legacy company. Phoenix havent sorted out Scot Mut to where they want it yet. However, the funds are still managed. In fact, a number have improved their relative performances since Phoenix took over.

Ratings are not a good thing to follow as the sole bit of your research. If the fund house/provider does not pay a ratings agency to rate their funds, then you would not expect it to get good ratings. Some of the best funds out there are unrated.

o my short term goal is to move it to another better rated fund that will be less volatile than the current one seems to be in light of Brexit chaos - hence I was thinking a fund that was based on bonds rather than shares - though don't know if this is true ?.

What Brexit chaos?
Why do you think shares will be any worse than bonds?
Why do you think Brexit will have any real impact on globally priced assets?

3) Also i'm looking to take some of it maybe 15-20% in the next 12 months for house improvements hence the desire for a scheme that I can draw from at 55.

Deposit/cash fund would be more suitable for the amount you are looking to draw. The rest of it should remain diversified according to risk profile and term. Going 100% bonds is something that you should rarely do.