Suggestions for a 50k pension pot

dunstonh

My understanding is that trackers are cheaper than managed.

They are. Although cost is always a secondary consideration to where/how you invest.

My thinking was that if I picked a comparatively low risk sector then the increase in value was likely to exceed charges without me knowing too much about individual company trends.

That would not be a good way to invest. Single sector investing, whether managed or index tracker, is bad quality investing. For example, if you picked UK equity, you would be investing 100% into UK companies. Nothing in to US, Europe, Asia etc. So, you would lack diversification and be limiting youself to the UK economy.

Plus, you say comparatively low risk sector. So, that means no stockmarket at all. Probably gilts or corporate bonds. But again, 100% into one of those would still be bad.

For inexperienced investors, multi-asset funds are usually better. These handle the diversification within the fund which means you do not have to do the work on picking funds beyond choosing the multi-asset fund you are going to use.

Paul_Herring

so what’s the best thing to do with this £50k for the next 5 to 10 years?

Add to it?

After possibly moving it - see other posts.

AlanP_2

I'm no expert on NHS pension scheme but thought transfers in were allowed, or does that only apply when it is from DB scheme (asking those who understand the scheme not you OP).

xylophone

thought transfers in were allowed

Perhaps he tried to transfer in more than a year after joining the scheme?

https://www.nhsbsa.nhs.uk/member-hub/transferring-scheme

LHW99

One thing. Although this appears to be a defined contribution scheme, it is an older one. Check that there are no guarantees with it such as a guaranteed annuity rate. I believe a few of the older type penions had extra benefits, which could be worth keeping, as well as making it more difficult (expensive) to transfer.

Audaxer

SutcliffePJ wrote: »

The charges seem quite high. Is there any way of being able to transfer to a platform that would let me pick a few low cost tracker funds (they seem quite a safe but reasonable bet) without paying large amounts?

For inexperienced investors sticking with tracker funds or better still, a globally diversified multi asset fund consisting of a tracker funds is 'safer' than trying to set up your own portfolio of active single sector funds. Even some experienced investors prefer passive investing to active investing over the long term in view of the lower costs.

I would therefore suggest researching some low cost multi asset funds such as Vanguard LifeStrategy, HSBC Global Strategy and L&G Multi Index funds. They all come in different versions to suit your risk level, for example around 60% equities is considered fairly balanced and medium risk, but you should be prepared to leave it invested for at least 10 years. Just don't panic and sell when there are equity crashes as that would just crystallise your loss.

SutcliffePJ

Hi AlanP and xylophone

Yes, I worked for the NHS a few years ago, on a short-term contract, paid into the pension scheme but got the money returned when I left, no option to stay. Since the old personal pension predates that period, I wasn't allowed to transfer in the money this time - I'm currently working again for the NHS. I did argue that since the earlier NHS pension period didn't really exist, the 12 months should start from the second employment date. To no avail. This probably isn't the forum to say it, but who would have guessed pensions could be so complex and controversial?!

SutcliffePJ

Hi LHW99,

Thanks for the comment.

It is a defined contribution pension that I haven't paid into since the early 90's. I can't see any benefits, certainly no mention of a guaranteed annuity rate. It was a bog standard Barclays Life personal pension that since the 80's has been transformed into different names/holding companies at least twice. Now ReAssure...

SutcliffePJ

Hi dunstonh,

Thanks for the comment, I'll take your advice and look for a multi-asset fund to invest in.

Offhand, what SIPP providers would you say are the best? For a very limited investor, like myself, does it just come down to charges?

SutcliffePJ

Hi Audaxer,

That sounds like good advice and I shall take it!

Are there any SIPP providers that I should definitely avoid? I tried to look up Saga Investment yesterday (rated in the 2018 guides) only to find it has ceased operations. Which doesn't inspire confidence.