pensions - what are people doing?

jazzy23

Ok,  i need to move my pension, its not doing too well and an old style pension.  I dont feel knowledgable enough to self invest, and I am looking at ready made pensions - say in PensionBee for example, or i take the advise of an IFA who has said AVIVA (who also do ready made pensions...) but as we all know the cost of 1% a year onoing plus fund costs can seem a lot.... I am torn between just paying it or having a go at a ready made plan.  I know it all depends on peoples ideas about things but what are people doing - I feel a bit at sea with it all.
I have paid for advise in the past, and generally it hasnt always worked out well.
I have 8 years to retirement - the fund has to move.

dunstonh

or i take the advise of an IFA who has said AVIVA (who also do ready made pensions...)

The IFA will be using Aviva platform and not the basic robo-style option.

 but as we all know the cost of 1% a year onoing plus fund costs can seem a lot.

It shouldn't cost more than 1% a year as unless you have a larger amount of money, you are unlikely to need ongoing servicing.  So, the IFA should be cheaper than both pensionbee and Aviva robo offerings on a transactional basis.

There are other options to the robos that could be better still.

I have paid for advise in the past, and generally it hasnt always worked out well.

Independent or sales rep?   How hasn't it worked out?  (was it due to events or was the advice bad)

Mark_d

What do you mean when you say an old style pension?  Is this a final salary pension?

Are you in employment where your employer is contributing towards your pension?

In my situation my employer and I contribute to a pension with Aviva.  I switch funds as and when I feel it's appropriate but there is a default option for people who don't want to choose their own funds.  This default option invests mostly in equity funds for younger people but then switches to funds investing in gilts/bonds as you get closer to retirement.  This default option is designed for the average person, who would buy an annuity on their chosen retirement date.

When I retire I won't be crystallising my pension investment to buy an annuity.  I will keep it fully invested and draw down lump sums.  Because of this the default option is not suitable for me.

jazzy23

'Independent or sales rep?   How hasn't it worked out?  (was it due to events or was the advice bad)' - th
Once I felt they simpley asked me to move so they got their commission. (this was a rep from a company)

Another time, the product itself had really high fees
I felt that they were just focussed on themselves so I have got nervous - even though, I have used them in the past!

jazzy23

'What do you mean when you say an old style pension?  Is this a final salary pension?

Are you in employment where your employer is contributing towards your pension?'

No its not a final salary - its a personal pension plan - I took out on advise 10 years ago - I do not have a company pension scheme worth anything
I have my own pension I contribute to.

and yes I will be going for draw down too and no I dont wants it in gilts and bonds yet!

Marcon

jazzy23 said:

'Independent or sales rep?   How hasn't it worked out?  (was it due to events or was the advice bad)' - th
Once I felt they simpley asked me to move so they got their commission. (this was a rep from a company)

Another time, the product itself had really high fees
I felt that they were just focussed on themselves so I have got nervous - even though, I have used them in the past!

What explanations did you get about why these choices were suitable for you? If you don't know the reasoning, it's hard to draw any valid conclusions (and it's also a recipe for generating suspicion, which is exactly what has happened here).

jazzy23

My private pension is worth 200K which isn't a lt I see but I feel loathe to spend it on fees and nervous to self invest.
Oh dear

MK62

Several platforms do a managed pension, where they do all the investing and make all the investment decisions. For one example, take a look here....  https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/we-do-it-for-you

Your pension would cost about £1220pa with them.......for comparison, going DIY on the same platform would cost about £620pa.

AJ Bell is another platform offering a similar service........https://www.ajbell.co.uk/pensions/ready-made-pension

I expect there are more as well - just keep an eye on the costs.

Another option, at lower cost,  could be a DIY pension with a single global multi-asset fund (perhaps a few for those who don't like putting all their eggs in one basket) where the fund managers essentially make all the investment decisions within the funds themselves.......examples of such funds are HSBC Global Strategy series, Blackrock MyMap series, CT Universal MAP series.......(not an exhaustive list though). Some might argue the pros and cons of each, but performance has been generally similar for funds with similar risk levels.....

jazzy23

Oof. Decisions decisions 

jazzy23

Using an IFA would be just over 2k before pension grows 

cloud_dog

MK62 said:

Several platforms do a managed pension, where they do all the investing and make all the investment decisions. For one example, take a look here....  https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/we-do-it-for-you

Your pension would cost about £1220pa with them.......for comparison, going DIY on the same platform would cost about £620pa.

AJ Bell is another platform offering a similar service........https://www.ajbell.co.uk/pensions/ready-made-pension

I expect there are more as well - just keep an eye on the costs.

Another option, at lower cost,  could be a DIY pension with a single global multi-asset fund (perhaps a few for those who don't like putting all their eggs in one basket) where the fund managers essentially make all the investment decisions within the funds themselves.......examples of such funds are HSBC Global Strategy series, Blackrock MyMap series, CT Universal MAP series.......(not an exhaustive list though). Some might argue the pros and cons of each, but performance has been generally similar for funds with similar risk levels.....

Don't Vanguard cap their charges at £375pa?