stakeholder pension fees

Baalmaiden

I'd like to just take the money and give myself a yearly amount which would be more than any annuity is offering. However 75% would be taxed so I will probably invest 75% in a drawdown product. I will get some advice on which one. Any suggestions? (not that I would do anything without unbiased advice).

Baalmaiden

The thing about the Lifestyle plan is that bonds are not doing well at the moment (or at least they did not last year) so are not such a good bet.

Thrugelmir

Baalmaiden wrote: »

I'd like to just take the money and give myself a yearly amount which would be more than any annuity is offering.

What level of drawdown are you envisaging taking from your pot?

AlanP_2

Baalmaiden wrote: »

I'd like to just take the money and give myself a yearly amount which would be more than any annuity is offering. However 75% would be taxed so I will probably invest 75% in a drawdown product. I will get some advice on which one. Any suggestions? (not that I would do anything without unbiased advice).

For how long for?

An Annuity income is guaranteed no matter how long you live or what happens to investments.

Drawdown is dependent on investment returns to try an help you keep pace with inflation and to make your pot last until you don't need it anymore.

Opposite ends of risk spectrum.

AlanP_2

Baalmaiden wrote: »

The thing about the Lifestyle plan is that bonds are not doing well at the moment (or at least they did not last year) so are not such a good bet.

Typiocally Bonds aren't meant to do well, they are there at increasing levels in a lifestyling plan to reduce the risk of your pot value falling off a cliff a year or so before retirement.

Lifestying only benefits you if you need reduced volatility because you plan on taking your pension in cash on a specific date (to buy an annuity for example). In this situation chasing higher returns is much higher risk.

If you plan on withdrawing from it almost like a current account over 20 - 40 years or so then you need higher returns by having an asset allocation that can generate growth over time.

Ignore where you are invested for now - What is your actual plan and timescale?

Once that is clear then you can sue suggestions on here and your own research to work out the best way of getting to where you want to be.

kidmugsy

Baalmaiden wrote: »

I will probably invest 75% in a drawdown product. I will get some advice on which one. Any suggestions? (not that I would do anything without unbiased advice).

We use Hargreaves Lansdown SIPPs. Their service is very good and their charges reasonable (we avoid "funds" and use ETFs instead).

If we had bigger pots, though, we might find the charges a bit high.