NOW! Pension - zero growth for 5 straight years

2»

Comments

  • B0bbyEwing
    B0bbyEwing Posts: 1,210 Forumite
    First Anniversary First Post Name Dropper
    edited 19 December 2023 at 10:50PM
    In a kind of defence of Now.
    Other providers give you a choice, but I think > 95% of customers stay in the default fund anyway, which is also usually a lifestyle type fund nowadays.
    Agreed on this point.

    I pitched it to my employer (or rather the dept that sorts this kind of thing) to use one of the other providers. I sent screenshots & explained my reasons as to why I personally felt they were better options. 

    I was told that I was wrong & that I can change how my money is invested. I just contact now & set my retirement date for later than what they currently have it & that will automatically make my money be invested more aggressive/adventurous. 

    Could be right but sounded like nonsense to me so I chose to continue with my approach of anything beyond minimum goes to my SIPP. 

    As you say though, I would probably wager that you could count on 1 hand the number of people at my company who would tweak how their WPP is invested. Probably on only 1 or 2 fingers too. So I can see why they didn't bother.
  • Albermarle
    Albermarle Posts: 22,022 Forumite
    First Anniversary First Post Name Dropper
    I was told that I was wrong & that I can change how my money is invested. I just contact now & set my retirement date for later than what they currently have it & that will automatically make my money be invested more aggressive/adventurous. 

    You can do that with Lifestyle funds normally. 

    They usually have 65 in their system for you but you can change it online usually. I think the oldest you can put in is 75. If you do this it will rebalance the lifestyle fund as if your retirement date was more years away.

  • GazzaBloom
    GazzaBloom Posts: 708 Forumite
    First Anniversary First Post Photogenic Name Dropper
    edited 20 December 2023 at 2:51PM
    My kids were in the NOW pension from a previous job they had with the same previous employer, it's not great. Will be transferring the amounts accrued out into their new workplace pensions next year. 
  • B0bbyEwing
    B0bbyEwing Posts: 1,210 Forumite
    First Anniversary First Post Name Dropper
    edited 20 December 2023 at 6:17PM
    I was told that I was wrong & that I can change how my money is invested. I just contact now & set my retirement date for later than what they currently have it & that will automatically make my money be invested more aggressive/adventurous. 

    You can do that with Lifestyle funds normally. 

    They usually have 65 in their system for you but you can change it online usually. I think the oldest you can put in is 75. If you do this it will rebalance the lifestyle fund as if your retirement date was more years away.

    Yeah I understand that (and this wasn't what I meant when I said sounded like nonsense to me). 

    But as I understand it (rightly / wrongly) there's basically 2 approaches with NOW that are dictated to you. There's the bulk of your working life & then there's your approach to retirement. I don't know the precise terms used but I think someone in here called the latter a 'glide path'. Still, whatever the terms, I'm sure you know what I'm referring to.

    So as I'm in my 40s, I'm still 20 years away from retirement. So at 40 with a set retirement age of 65, that's 25 years to go - nowhere near their 'glide path'. 

    So say I tell them I'll retire at 75 then & push things back 10 years. As I understand it, it'll make zero difference to what happens with my money today - as it'll stay invested as it has been & currently is.

    The difference will come in 10 years time when I turn 50 - instead of entering their 15 year countdown glide path, I'll stay invested as I am today. Only when I turn 60 (in this example) will things change.

    Which is totally different to someone who is with NEST or TPP where in those portals you can go on and change from today how you're invested. Want to jump from cautious to aggressive? No problem, done & those changes take place today (or maybe the small print says from next collection but you get my point).

    Or am I wrong?

    My kids were in the NOW pension from a previous job they had with the same previous employer, it's not great. Will be transferring the amounts accrued out into their new workplace pensions next year. 
    Yep, as soon as someone else I know who was with NOW went to an employer who provided TPP found out that they could move their money they did so pronto. 

    And got better returns, even through last year.
  • Albermarle
    Albermarle Posts: 22,022 Forumite
    First Anniversary First Post Name Dropper
    Or am I wrong?

    You are right in what you say .

  • masonic
    masonic Posts: 23,235 Forumite
    Photogenic Name Dropper First Post First Anniversary
    edited 21 December 2023 at 6:16PM
    So say I tell them I'll retire at 75 then & push things back 10 years. As I understand it, it'll make zero difference to what happens with my money today - as it'll stay invested as it has been & currently is.
    Before my employer saw sense and upgraded our workplace scheme to a SIPP, I pushed my "retirement date" right back to avoid lifestyling (and although I could opt to pick my own funds, that came at a premium in terms of custody charge). Adjusting the retirement date can be a useful tool to get some control where you have little.
  • jimjames
    jimjames Posts: 17,592 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Can you keep the NOW account open and move most of the balance to your SIPP? I've done that with my employer scheme so nominal balance kept it open and monthly payments still get added. I can transfer again in a couple of years once the balance increases
    Remember the saying: if it looks too good to be true it almost certainly is.
  • B0bbyEwing
    B0bbyEwing Posts: 1,210 Forumite
    First Anniversary First Post Name Dropper
    edited 22 December 2023 at 3:01PM
    jimjames said:
    Can you keep the NOW account open and move most of the balance to your SIPP? I've done that with my employer scheme so nominal balance kept it open and monthly payments still get added. I can transfer again in a couple of years once the balance increases
    Dummy question time - 

    Who would you ask for that?

    Now or your employer?

    My only concern there is - I'd always wonder, what if they ever did well, since I'd expect THEM to do better than me since I'm far from an expert.
  • masonic
    masonic Posts: 23,235 Forumite
    Photogenic Name Dropper First Post First Anniversary
    edited 23 December 2023 at 8:34AM
    jimjames said:
    Can you keep the NOW account open and move most of the balance to your SIPP? I've done that with my employer scheme so nominal balance kept it open and monthly payments still get added. I can transfer again in a couple of years once the balance increases
    Dummy question time - 

    Who would you ask for that?

    Now or your employer?

    My only concern there is - I'd always wonder, what if they ever did well, since I'd expect THEM to do better than me since I'm far from an expert.
    You would ask Now if they supported partial transfers out. It is more important to have retirement investments that are appropriate to your circumstances than picking investments that have the highest return potential. A 'one size fits all' approach is likely not doing either, so is unlikely to be the best approach for most individuals within the scheme. That said, a major source of pension underperformance is high fees, and that is something you can be more skilled at controlling than your employer.
Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards