LGPS Prudential AVC through Wise

Sobraon

The performance of PRU AVC is not great (IMHO). If you contact the relevant PRU dept ( sometimes a little difficult but can be done) and request the exact ISIN numbers for the fund(s) in your particular 'flavour' of LGPS you can back track performance by using a free account at the FT.com. Use portfolio service and set up a watchlist (may need to register for a free account).

The performance of Pru 3 Global Equity Pen was 2.43% (1yr trailing Total Return) and 7.93% (5yr TTR)* and the better Pru 3 International Equity Pen 4.42% and 10.92%.

For reference a 'bog standard' global tracker (HSBC MSCI World UCITS ETF) produced 6.86% and 12.47%.

As is common with pension companies getting to the bottom of the charges is a nightmare. Both the PRU funds mentioned above are 'funds of funds' (constituents include M&G funds) so at all layers there will be charges. Additionally the Pru pension will also charge , so what the total fees are is a figure completely impenetrable to this bear of very little brain.

As always DYOR/YMMV and this is just my understanding!


* the multi year TTR are I believe annualised but good luck with finding this on FT.com

Jimbouk

Thanks for all the replies , some fantastic info there .
Just had it confirmed from AVC wise that the figure is appx £1472 for a £ 1000 deduction in take home pay , thanks cloud _dog

We are aware that the pru's funds are not the best performers , but the money paid in to the pot will more than compensate for that .Have my FA on the case with regards to this

Cheers

daveyjp

Jimbouk wrote: »

Thanks for all the replies , some fantastic info there .
Just had it confirmed from AVC wise that the figure is appx £1472 for a £ 1000 deduction in take home pay , thanks cloud _dog

We are aware that the pru's funds are not the best performers , but the money paid in to the pot will more than compensate for that .Have my FA on the case with regards to this

Cheers

Exactly. If Pru grows by 0% you have had 12% "return" from NI contribution.

wrexy33

Just completing my paperwork to start paying AVC's via a salary sacrifice scheme. I'd be grateful to know if I have the amount of salary to be sacrificed correct as I believe if I sacrifice too much then I could be loosing out.



I Take home £1700 per month - I am asking for £630 to be salary sacrificed every month. Looking to do this for 2 years into the prudential deposit fund.


Also, are there any issues with salary sacrifice and SSP (sick pay).


Many Thanks

Jimbouk

Thanks for all the input its now all set up and in place .

As expected die to onlly three years until retirement my FA advised to use it as a money accumulation pot and should be in a fund with as little risk as possible . He advised that the pru cash fund which purchases units in the M&G PP Cash Fund M&G PP would be his recomendation.

One thing to watch out for when applying for this type of avc is to make sure your investment amount doesnt take your remaining salary under the national minimum wage .