Vanguard advice

C_Mababejive

Just looking at the Vanguard platform do i understand correctly that there is a 0.15 (account) platform fee and well as the ongoing fund charge so for lifestrategy 0.22 = total 0.37% pa.

I guess it all boils down to how much you have in the pot ,whether you regularly invest or just put a lump sum in..

ValiantSon

cloud_dog wrote: »

I know I am being pedantic but, assuming all these changes come in to effect then it is my understanding that they will keep the personal pension retirement age in line with the SPA minus 10 years?

Perhaps. It wouldn't surprise me if they did that, but at the moment it is only set to rise to 57. Who knows what little treats the present, or indeed any future, government have up their sleeves for us. If only we all had access to MP's pensions and severance packages, not to mention the gravy train of non-executive directorships they take on.

ValiantSon

C_Mababejive wrote: »

Just looking at the Vanguard platform do i understand correctly that there is a 0.15 (account) platform fee and well as the ongoing fund charge so for lifestrategy 0.22 = total 0.37% pa.

I guess it all boils down to how much you have in the pot ,whether you regularly invest or just put a lump sum in..

Yes it is 0.15% platform fee, plus 0.22% OCF. The OCF, however, is deducted from the value of the fund and reflected in the NAV price, so you never actually hand money over for that (there are also transaction costs of around 0.1% which work in the same way as the OCF). You only actively pay the 0.15% platform fee every quarter (it is calculated daily), and you can do so by direct debit (they e-mail in advance to let you know how much it is and when it will be collected). Those fees, by the way, are pretty cheap, especially the platform fee.

There are no trading fees with Vanguard Investor, so it doesn't matter (from a fees perspective) whether you put one amount in per year or pay in every week.

cloud_dog

ValiantSon wrote: »

Perhaps. It wouldn't surprise me if they did that, but at the moment it is only set to rise to 57.

According to this GOV.UK website (published 19 July 2017), which indicates that the increase is being brought forward and would include an increase to SPA to 68. Obviously, this may have been superseded.

ValiantSon

cloud_dog wrote: »

According to this GOV.UK website (published 19 July 2017), which indicates that the increase is being brought forward and would include an increase to SPA to 68. Obviously, this may have been superseded.

Yes, I'm aware of the proposed accelerated timescale for NPA to rise, but the new proposals including nothing about changes in existing proposals for early retirement.

cloud_dog

Ok but, you appreciate the only reason the personal pension age is going up to 57 is because to SPA is 67, and <<somewhere in a paper>> there is the intention to keep the personal pension age in step by SPA minus 10 years.

Superscrooge

The below is copied from the pension advisory service website
https://www.pensionsadvisoryservice.org.uk/about-pensions/pension-reform/freedom-and-choice

It is currently proposed that the normal minimum pension age (the earliest age you can may be able to take your pension benefits) should increase from age 55 to age 57 in 2028. It would increase at the same rate as the increase in the State Pension age from then on. This means that the minimum pension age would remain ten years below State Pension age.

The change would apply to all pension schemes, with the exception of those in the public sector, that do not link their normal pension age to State Pension age. This includes fire-fighters, police and armed forces.

This proposal is subject to parliamentary approval.

ValiantSon

cloud_dog wrote: »

Ok but, you appreciate the only reason the personal pension age is going up to 57 is because to SPA is 67, and <<somewhere in a paper>> there is the intention to keep the personal pension age in step by SPA minus 10 years.

I am aware of the historic link, but currently the proposal is to increase early retirement to 57 and to accelerate the increase in NPA to 68.

bostonerimus

With ISA's "pension age" can be made irrelevant. The UK has very generous ISA contributions and tax free dividend and capital gains allowances so that, if you have the money, you can invest tax free and get access to the money whenever you like. So you should be able to split contributions between pensions and ISAs in an early retirement plan. I retired at 52, 3 years before my pension started at age 55, by saving to regular investment accounts. If you plan well your retirement age can be entirely your choice and not dictated by age related withdrawal rules.