pension pots

MEM62

Eddiebeef said:

L&G does support drawdown. I can compare directly with the L&G and RL and over the past 2 years the L&G pot has gained not lost like the RL pot...fact. Its not perceived.

You are missing the point.  It is not the company administering your pension that dictates the performance - it is the funds in which you are invested.  The investments in RL can be switched to different funds that will perform differently to those you currently are invested in.    

Albermarle

Eddiebeef said:

Thanks for the reply. I would like to transfer my RL pot into the L&G pot because the L&G pot does better. But the RL pot has been crystallised and won’t be accepted.
I’m wondering when the L&G has been crystallised does that change things?

In simple terms this is what you are saying.

I have investment X in my RL pension
I have investment Y in my L&G pension

Investment Y has performed better over the last 2 years, so that means ( according to you) that L&G as a pension provider is better than RL as a pension provider, when in fact it does not show that at all.

Eddiebeef

i'm beginning to find your comments patronizing and not wholly accurate. 

ader42

If you move your RL pot into L&G and then subsequently the investments in L&G drop in value while those in RL grow how will you feel?

The most important thing is what funds/products your money is invested in - not who the provider (RL or L&G) is.

If your RL pot was invested in exactly the same investments as the L&G pot then it would have grown exactly the same.

The differences between the two would be just the different charges for the two different providers. 

dunstonh

Eddiebeef said:

i'm beginning to find your comments patronizing and not wholly accurate. 

If you made an effort to understand things then you would see things clearer.    

Lets put it another way.   Both pensions have a global tracker.  So, if you invested both in a global tracker than you would get the same performance.  Only difference would be charges and functionality.  (plus RL gets the profitshare of circa 0.15% p.a. because its a mutual)

If you put one pension in cash and the other in a global tracker, it doesn't matter which, then 10 years later you would expect the one in the global tracker to be higher.      However, if one pension was in cash in 2022 and the other in a global tracker, then the one in cash would have been higher.

SVaz

OP - you don’t seem to understand that it’s the investments you chose  ( or the default funds if you never changed them)  that dictate the performance of the pension,  not the pension company. 

What are your pension funds specifically invested in?
You will probably find that they might look similar but have a different percentage of equities and bonds - that’s what causes the differing performance.  

My guess is that one pension has a higher bonds holding - hence the lower performance.  

 

Beddie

Eddiebeef said:

i'm beginning to find your comments patronizing and not wholly accurate. 

Eddie, don't be disheartened that this has turned into a bit of an argument, so many forum threads do.

What do you want to hear?

That SJP are best avoided? Yes.
That you do probably need some advice and should therefore speak to an IFA? Also yes. But don't expect them to magically pick the best performing funds, they can't do that. But they can set up your pensions in the right way for you and your attitude to risk.

Arguing about which fund did better etc. is a waste of time, it's in the past. Instead work on getting yourself in the right position now and for the future. 

Spivo46

Beddie said:

Eddiebeef said:

i'm beginning to find your comments patronizing and not wholly accurate. 

Eddie, don't be disheartened that this has turned into a bit of an argument, so many forum threads do.

What do you want to hear?

That SJP are best avoided? Yes.
That you do probably need some advice and should therefore speak to an IFA? Also yes. But don't expect them to magically pick the best performing funds, they can't do that. But they can set up your pensions in the right way for you and your attitude to risk.

Arguing about which fund did better etc. is a waste of time, it's in the past. Instead work on getting yourself in the right position now and for the future. 

A great response Beddie complimented by all the other responses;
Again this highlights how poorly educated most of us are when it comes to pension investments. I am not referring to "Eddiebeef" but this seems to be a typical misunderstanding which i also found myself doing a few months ago. I am also with Royal London in a Governed Portfolio 4. I use a simple tool in Trustnet to make performance comparisons. however, i have found the responses and information on this forum really valuable and informative. I have, on occasions, had to absorb i few sarcastic comments but no offence taken, its a small price to pay for learning! I will not use an independent financial advisor again based on the fact the information and tools are available to anyone that wants to learn. It would be interesting to see what happened if you went to 10 different IFA's. would they all give the same advice and course of action, or would it be all different but still acceptable? Nobody really knows how markets will perform in the near or long term future. 

MEM62

Spivo46 said:

Beddie said:

Eddiebeef said:

i'm beginning to find your comments patronizing and not wholly accurate. 

Eddie, don't be disheartened that this has turned into a bit of an argument, so many forum threads do.

What do you want to hear?

That SJP are best avoided? Yes.
That you do probably need some advice and should therefore speak to an IFA? Also yes. But don't expect them to magically pick the best performing funds, they can't do that. But they can set up your pensions in the right way for you and your attitude to risk.

Arguing about which fund did better etc. is a waste of time, it's in the past. Instead work on getting yourself in the right position now and for the future. 

It would be interesting to see what happened if you went to 10 different IFA's. would they all give the same advice and course of action, or would it be all different but still acceptable? 

The advice given by different IFA's may well vary but is should all be 'suitable' to the individuals circumstances and goals.    

older_and_no_wiser

You should make an appointment with a local IFA. They usually give you 2 free appointments to assess your finances and help you decide on the best way forward. In my experience, they will be around half the ongoing cost of SJP.

I would advise you to firstly collate all your savings/investments/pension details and make a spreadsheet of accounts. Detail what your living expenses are and also research investments (SIPPS, ETFs, ISAs etc). Use YouTube and scan this forum! You should go into those meetings with knowledge and a vision of your future - what you want and when. Don't let advisors push you into any hasty decisions just because you don't understand their lingo or are afraid of messing things up. A DIY approach without IFAs isn't difficult. I've done it from a starting position of ZERO knowledge about 4 years ago and have saved so much in ongoing charges and fees. I've made a few mistake along the way but I am all the better for it and learnt so much...I still regularly watch YouTube channels to reaffirm my understanding and keep me on the right track!