Decent pension provider

danechkin

Hello there. I just got my annual statement from my pension provider. I have the safest plan which shouldn't earn me much money, but also shouldn't loose much. This year it lost me around half a grand. Also it has annual management fee around 0.30%. Overall I feel like it would be better if my money would be simply in bank, which would at least cover inflation. I understand this year is exceptional financially and every business looses money, but is it the case for all pension providers or only mine is bad?
My question is, is there public information available on how different pension providers doing this year and also can I somehow store the pension money in bank instead?

Thanks!

Albermarle

The pension provider only provides the framework for the pension. It is the investments that you have within the pension that matter. The same investment with two different pension providers will perform the same . On the other side if you have one pension provider and you change the investments within it, they will perform differently.

Most people's pension pots have dropped between 5% and 25% in 2022. Typically around 10 to 15%.

Saying it lost £500 does not mean much, without knowing how much it was in the first place.

Marcon

danechkin said:

Hello there. I just got my annual statement from my pension provider. I have the safest plan which shouldn't earn me much money, but also shouldn't loose much. This year it lost me around half a grand. Also it has annual management fee around 0.30%. Overall I feel like it would be better if my money would be simply in bank, which would at least cover inflation. I understand this year is exceptional financially and every business looses money, but is it the case for all pension providers or only mine is bad?
My question is, is there public information available on how different pension providers doing this year and also can I somehow store the pension money in bank instead?

Thanks!

Do you know any bank accounts paying 10% per annum?

Mutton_Geoff

danechkin said:

Hello there. I just got my annual statement from my pension provider. I have the safest plan which shouldn't earn me much money, but also shouldn't loose much. This year it lost me around half a grand. Also it has annual management fee around 0.30%. Overall I feel like it would be better if my money would be simply in bank, which would at least cover inflation. I understand this year is exceptional financially and every business looses money, but is it the case for all pension providers or only mine is bad?
My question is, is there public information available on how different pension providers doing this year and also can I somehow store the pension money in bank instead?

Thanks!

0.3%? What is the AMC on the investments? Who advised you on the investments for just 0.3%? Cash is not a good investment over the long term.

dunstonh

 I have the safest plan which shouldn't earn me much money, but also shouldn't loose much

Its not the plan that has the risk.  it is the investments.

Investments will act within their normal volatility range 95% of the time. 5% of the time they will go outside of that.  2022 was a 5% year.   

his year it lost me around half a grand. 

Everyone is down in 2022.   That isnt very much.

 Overall I feel like it would be better if my money would be simply in bank, which would at least cover inflation. 

No it wouldnt.  Historically cash does not cover inflation. However, nor to the lowest risk investments.   There are actually increased risks with going too low a risk.

My question is, is there public information available on how different pension providers doing this year and also can I somehow store the pension money in bank instead?

It is nothing to do with the pension provider.  It is all down to your investment choices.

In a typical 5 year period, you get one loss year, one year of vritually no returns and 3 positive years.  The order varies and sometimes you may get no negative year for 10 or so years and then get 2 in a row..   It is the long term average that matters.  Not the short term.

And if you are paying in monthly, negative years like 2022 are great news.  Not bad news.

Money_Mad

danechkin said:

Hello there. I just got my annual statement from my pension provider. I have the safest plan which shouldn't earn me much money, but also shouldn't loose much. This year it lost me around half a grand. Also it has annual management fee around 0.30%. Overall I feel like it would be better if my money would be simply in bank, which would at least cover inflation. I understand this year is exceptional financially and every business looses money, but is it the case for all pension providers or only mine is bad?
My question is, is there public information available on how different pension providers doing this year and also can I somehow store the pension money in bank instead?

Thanks!

losing half a grand either means you have a very small pension pot or the fund as done well considering the performance of the stock market over the last year

How old are you? If you have 20-30 years until retirement then putting your money in the “safest plan” is not necessarily the best thing to do. 

Mutton_Geoff

Money_Mad said:

How old are you? If you have 20-30 years until retirement then putting your money in the “safest plan” is not necessarily the best thing to do. 

Even at 60+ if you were in a drawdown scheme it would be mad to put any more than 1/3rd into "safe" stuff given that the remainder of the pot should last another 25-30 years (still a decent investment period).