We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

FP v NU

My company group pension scheme recently switched from Norwich Union to Freinds Provident, all new contributions will be paid to FP but the question is what to to with the existing NU funds. Stick with NU or transfer to FP. We have the chance to transfer for no charge, and no penalty for the funds I'm in.

The IFAs advising us can not advise what is the best option, both schemes charge the same 0.6% but FP has a much better choice of funds and has quite a wide external fund selection (at a price) which may be attractive to me.

FP also have a far better online service which allows for better management of my funds.

The only downside I can see in transferring is having all my eggs in one basket, is this something to be really concerned about or are pension funds protected regardless of the provider?

Comments

  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    For the funds that you want to use, take a look at the relative performance of the FP and NU versions.
  • dunstonh
    dunstonh Posts: 118,557 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The IFAs advising us can not advise what is the best option,

    If they are IFAs they can. If they are tied agents, they cannot.

    However, assuming they are IFAs, they would have to factfind you first before giving individual advice and that would be time consuming.
    The only downside I can see in transferring is having all my eggs in one basket, is this something to be really concerned about or are pension funds protected regardless of the provider?

    Its not an issue with unit linked funds. Only with profits.
    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.
  • comparing fund performance might help, if performance differences are significant, I'll check it out.

    the reason the IFA can't advise is NU have been very slow at providing the illustrations, and have even provided inaccurate information, for which we have now been compensated for. After a year of beuracracy our IFA is not confident enough to be able to advise us. I guess this is another reason to leave NU, their administration seems woeful.

    good to know there is no real risk with having all the funds with one provider.

    thanks
  • dunstonh
    dunstonh Posts: 118,557 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    the reason the IFA can't advise is NU have been very slow at providing the illustrations, and have even provided inaccurate information, for which we have now been compensated for. After a year of beuracracy our IFA is not confident enough to be able to advise us. I guess this is another reason to leave NU, their administration seems woeful.

    There is nothing the IFA needs from NU to give advice on funds. We have independent sources ranging from the free "Fundworks" to higher quality sources such as Financial Express Analytics.

    If the adviser is not confident enough to advise on fund selection, then I would be very concerned as that is probably one of the most important things you use an IFA for.
    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.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    You can compare the fund pewrformance here

    http://www.trustnet.com/pen/funds/perf.asp
    Trying to keep it simple...;)
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617.1K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.