Old legal and general with profits pension being sold to Reassure

2stixoftwix

My legal and general with profits pension will be sold next year to reassure ltd

Does anyone know anything about their returns on investment/ performance? I couldn't find much about this company except they buy up unwanted pensions

I have a good transfer out value on it, and it earns currently about 6%
Would it be worth still adding funds to it
It's worth £80,000 at the moment

dunstonh

Does anyone know anything about their returns on investment/ performance?

You are not switching into a ReAssure fund. It will be the same L&G fund rebranded.

Would it be worth still adding funds to it

Not possible to answer without more info. Probably not as its an obsolete method of investing. Unless there are contractual reasons that make it sensible to stay put, a modern alternative may be better.

peterbaker

dunstonh wrote: »

Not possible to answer without more info.

Quite.

Probably not as its an obsolete method of investing.

21.4 billion in these particular with-profits funds alone at L&G. That's all obsolete money of course - they ain't making any more I guess - who wants it, anyway ? :rotfl:

Unless there are contractual reasons that make it sensible to stay put, a modern alternative may be better.

Or not ...

Lots of reading and searching online will be needed to assess that one. Clearly someone doesn't think the with-profits funds are obsolete - a cool £650 million for the rights to manage them? What estate surpluses exist within them? All in the eyes of the beholders and their tame actuaries, I guess?

Aviva have been toying with releasing £500 million to their shareholders just this past year. Where from exactly? Their W-P funds are apparently 2½ times the size of L&G's being sold, but with two major reattributions of estate behind them, Aviva and their 2015 acquired partners in reattribution are past masters at extracting value from w-p estates for their shareholders (2001 and 2009).

Perhaps the nice people at L&G haven't the heart to do what Aviva does in plain sight. Maybe L&G would rather wash their hands for a cool £650 million and let someone else with a lesser reputation do the dirty business of plotting to get their mits on the estate within the funds.

2stixoftwix

The return on the WP L&G pension is about 6% pa which I know isn't great - but it's the same as nutmeg. I just don't know what to do. I don't really have the time or the desire to manage a portfolio sipp.
I want an easy to use plan that I can put money into easily and get an above inflation return

dunstonh

The return on the WP L&G pension is about 6% pa which I know isn't great - but it's the same as nutmeg.

Nutmeg is not a great comparison though. Their returns are not that good and their financial position is dire. It isnt comparing like for like.

2stixoftwix

Their returns are not that good and their financial position is dire

Yes I have read that.

So 48 year old female, 80k invested in an old L&G soon to be sold WP pension.
what are my options? As I stated I haven't the inclination to do it myself

dunstonh

what are my options? As I stated I haven't the inclination to do it myself

1 - Keep as is
2 - Use an IFA to do the work for you
3 - DIY
4 - Use robo provider (which is not advice but aided selection).

From a cost point of view, IFA, DIY or robo are all likely to be cheaper than keeping it unless you had special terms from the start.

2stixoftwix

No special terms. It was originally an old workplace opt-out scheme that I took out in the mid 90's.
It's been largely ignored.
I'm only interested due to the tax break I get from adding an amount from my company and a small personal contribution

Albermarle

Maybe useful to think about what a DIY pension means :
It can mean a very simple personal pension with a household name , with just maybe four fund options : Low risk: medium /low; Medium ; medium /high . Can be managed on line or just left alone once it is set up .
Or it can mean a full SIPP , where you can invest in thousands of funds; individual shares , property etc and needs more time invested
Then every variation between the two , with different costs /charges/time involved with every type.

Albermarle

2stixoftwix wrote: »

The return on the WP L&G pension is about 6% pa which I know isn't great - but it's the same as nutmeg. I just don't know what to do. I don't really have the time or the desire to manage a portfolio sipp.
I want an easy to use plan that I can put money into easily and get an above inflation return

I am not an expert but 6% growth is by no means a disaster . It is still growth well above inflation. In theory a WP fund should also withstand any downturn better as far as I understand it .

2stixoftwix

6% growth is by no means a disaster

No it's not and this is the quandary. Apart from 2008, it has always performed OK I can hope that when it gets moved to Reassure it continues to grow.
Market value protection will probably be charged if I transfer.

I can't find much out about the other pensions this company has bought and what the performance is like.