Virgin Glidepath Stakeholder Pension

brianfall

I put some money into a Virgin Stakeholder pension a while back as I liked the idea of a passive fund tracking the FTSE. Just got a letter saying it's being moved to 'Glidepath'. Anyone else got this and wondering what to do? My feeling is to stick with what I'd got.

Albermarle

A passive fund tracking the FTSE is not normally a good investment. The UK stockmarket has markedly underperformed global markets in recent years . Particularly the FTSE 100 .
Maybe why it has been moved, although pension providers do not usually just move your investments just like that.

The_Green_Hornet

Apparently it is something that Virgin do automatically as you get closer to retirement.

https://uk.virginmoney.com/virgin/pension/glidepath/

Marcon

brianfall said:

I put some money into a Virgin Stakeholder pension a while back as I liked the idea of a passive fund tracking the FTSE. Just got a letter saying it's being moved to 'Glidepath'. Anyone else got this and wondering what to do? My feeling is to stick with what I'd got.

Glidepath is simply Virgin's fancy name for what everyone else calls 'life styling'. All it means is that as you get closer to your nominated retirement age (under your Virgin pension plan, which may or may not coincide with when you plan to stop working), your investments are automatically moved from 'risky' (volatile) investments such as stocks and shares to the calmer waters of bonds and deposit accounts. 

What other people are thinking isn't going to be much help to you unless they have the same attitude to risk, are the same age, have nominated the same 'retirement' age, have the same savings as you, plan to take their benefits in the same tax free lump sum/annuity mix...

dunstonh

 as I liked the idea of a passive fund tracking the FTSE. 

You must be the only one.   That is a pretty poor choice.

engagedandopen

Hi brianfall, yes I got one too.  Some people here obviously have made assumptions and  didn't know this new approach has nothing to do with Retirement Date... The multi-asset approach, managed by ASI, is good; don't be afraid of it!

lawroco

I have had the same and I am going to opt out . Just looks like a rehash of what we already have but with a large increase in the admin charges . Checked out the original glossy brochure they issued when taking out the original policy and can’t find “ that is a pretty poor choice “ anywhere ; cynic in me thinks five years down the line that will be the tag line for Glidepath ! Eighteen months out from retirement and as an ex Equitable Life pension holder , this is really not needed but I am preparing myself to be endlessly disappointed and suggest you do the same ! 

engagedandopen

It's not simply a rehash; it is better. The top charge of 0.85% is only 0.10% above the charge for their workplace version of the Virgin Money Growth fund 3 (some providers seem to charge much more on retail, e.g. Standard Life charge 0.43% more for Active Plus V).  It's cheaper than the Scottish Widows and Standard Life stakeholder pensions at 1%.  It's slightly more expensive than the Legal and General SIPP at 0.61% (but that has no glidepath).  It's more expensive than the Vanguard SIPP Target Retirement Date funds but that supposedly has a fixed allocation (though they actually told me they review it once a year...).  Its main competitor on price - assuming it's still a mainly passive offer - is Nest.

dunstonh

t's cheaper than the Scottish Widows and Standard Life stakeholder pensions at 1%. 

It is 2020.  Not 2001.    Plus, both of those stakeholder pensions would have reduced from 1% after 2013.

Bottom line is that it is an expensive option by modern standards.

engagedandopen

Both are still 1% to retail customers (albeit Scottish Widows no longer sells their product directly as of this year), e.g.
adviserzone.com/adviser/public/adviserzone/individual/products/pensions/stakeholderpension

dunstonh

Both are still 1% to retail customers (albeit Scottish Widows no longer sells their product directly as of this year), e.g.
adviserzone.com/adviser/public/adviserzone/individual/products/pensions/stakeholderpension

That is the default pricing including commission.   However, commission was banned in 2013.  They are retailed commission free now.  Which brings them down to around 0.5-0.6%. p.a.   Although personal pensions with a lifestyling option would be better at 0.3x% typical