Alternatives to Stakeholder Pensions

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
3 replies 490 views
brianfallbrianfall Forumite
28 Posts
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Hello, I'm a newbie so be kind!

I have £27k in a Virgin Stakeholder Pension that tracks the FTSE ASX. It charges 1% in fees, which seems like a lot for a passive fund.

Any suggestions for a good alternative?

I'm a higher rate taxpayer, I am 45 and don't plan to retire anytime soon. I have 12 years contributions into a NHS pension, so this is just a little extra fund.

I'm wondering about AVCs? Are there pension tracker funds out there that give you more of a spread of different countries (and at what point do these kind of funds switch from being passive to actively managed?). If you were to go for a fund that tracked a combination of different countries economies, how would you go about deciding what proportion of your fund to allocate to each country?

Thanks!

Replies

  • dunstonhdunstonh Forumite
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    I have £27k in a Virgin Stakeholder Pension that tracks the FTSE ASX. It charges 1% in fees, which seems like a lot for a passive fund.

    It was good on pricing in 2001 but by 2005, it was out of date on pricing.
    It was bad investing from the start as single sector investing (whether passive or managed) is bad quality investing.
    Any suggestions for a good alternative?

    Depends on how you intend to buy as the DIY options are different to IFA.

    Your DIY attempt in 2001 has cost you more than using an IFA.
    I'm wondering about AVCs?

    Mostly obsolete nowadays although a few gems still exist.
    Are there pension tracker funds out there that give you more of a spread of different countries (and at what point do these kind of funds switch from being passive to actively managed?).
    Technically, every option is managed. You may have a collection of underlying passive funds but the decision on how much you place in each is a managed decision. How frequently you rebalance them is a managed decision. How you adjust the weightings throughout the economic cycle is a managed decision.

    Also, if you DIY, its unlikely you would use pension funds. you would more likely use OECIS/Unit Trusts. Pension funds are mostly used in workplace schemes and via IFAs or intermediaries.
    If you were to go for a fund that tracked a combination of different countries economies, how would you go about deciding what proportion of your fund to allocate to each country?

    By researching all the funds in that do that and deciding which is best.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • MarconMarcon Forumite
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    Are you still actively contributing to the NHS scheme? If so, have you asked for details of their AVCs?
  • brianfallbrianfall Forumite
    28 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Marcon wrote: »
    Are you still actively contributing to the NHS scheme? If so, have you asked for details of their AVCs?

    Yes still paying in to the NHS Pension so l will look into this option.
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