Workplace Legal & General pension

woods007

I help my brother who has learning difficulties and I'm confused anout his pension! Any advice would be appreciated. He is a gardener and has had a workplace pension with L&G for 10 years. His contribution is £125  a month. He showed me his statement in Aug 21 and it showed a pension pot of £6200. He has just sent me an Apr22 statement which shows a pot of £6350. Am I right in thinking that although he has paid in £1000 between those dates, his pension pot appears to have gone up by only £150? Also for 10 years payments, surely he'd have been better off putting his money in the building society?!

dunstonh

Am I right in thinking that although he has paid in £1000 between those dates, his pension pot appears to have gone up by only £150?

It means his value has gone down (which is understandable and happens periodically). 

Also for 10 years payments, surely he'd have been better off putting his money in the building society?!

No. The pension trumps savings account by a long way.

Simon11

The Ukraine war has likely impacted on his pension pot, although there has been recovery in the last week or two.

Depending on his income and current expenditure, it may be worth considering whether contributing £125 a month will give him enough of an income when he is retired?

Do you have online access to his account- it may be worth having a look at the performance of his pension and looking at future predictions for the size of the income stream.

grumiofoundation

woods007 said:

I help my brother who has learning difficulties and I'm confused anout his pension! Any advice would be appreciated. He is a gardener and has had a workplace pension with L&G for 10 years. His contribution is £125  a month. He showed me his statement in Aug 21 and it showed a pension pot of £6200. He has just sent me an Apr22 statement which shows a pot of £6350. Am I right in thinking that although he has paid in £1000 between those dates, his pension pot appears to have gone up by only £150? Also for 10 years payments, surely he'd have been better off putting his money in the building society?!

As above the fluctuation in value is to be expected. 

It is not possible he has been paying in £125 per month for 10 years (125 x 12 x 10 = 15,000) and it is only worth £6000. 

Do not suggest to your brother that he stops paying into his pension and that a building society would be better - this would be incorrect and irresponsible.

Albermarle

It is not possible he has been paying in £125 per month for 10 years (125 x 12 x 10 = 15,000) and it is only worth £6000.

As it is a workplace pension , then presumably the employer is also making a monthly contribution , which would make it even more unlikely that the pension is worth only £6000.

OP - I think you really need to check back the info over the last few years as something is not adding up .