How can I decide?

Brie

tacpot12 said:

In my experience, when it comes to pensions, there are three sorts of people:

1) those who avoid the problem and either do nothing or randomly pick a firm to manager their Pension. (Many of these end up paying far to much)
2) those that are inclined to read and research, and eventually have the confidence to DIY
3) those that take the time to search for a good IFA that offers a pension management service at a reasonable price.

I took a DIY approach, but I've had a personal pension since the early 1990s so have had time to learn. MY professional work also involved financial modelling, so I was well placed to understand personal pensions, but you don't have to be any sort of maths or computer wizard to manage your own pension. 

There are some important concepts to learn, but the availability to ready made portfolios and multi-asset funds means that most people can invest successfully with realatively little trouble.

Clearly, the logical choice is between 2) and 3).

Quite frankly I get the OPs brain freeze over this.

I assumed for myself that when approaching retirement I'd get myself a SIPP and confidently DIY.  Why wouldn't I having spent a life time in the financial industry, a good chunk of that in pension admin and happy to work with spreadsheets and numbers and buying and selling of shares.  

But life changes and while I'm still fairly confident, now my life doesn't allow me the luxury of doing this all myself.  So 2 years into retirement I'm still waivering between option 3 and 1.  I know that 3 is better value but 1 would take a huge chunk of worry out of the lives of both myself and my OH.  

jazzy23

Cus said:

Did you tell the IFA your concerns?

To his report. No. But they are ringing me constantly it feels like a hard sell tbh.
I wasn't concerned about his recommendations, just what he put in the report about my circumstances 

jazzy23

Sarahspangles said:

jazzy23 said:

I am completely paralyzed. I need to move my personal pension. I had a free report done by an IFA but I felt he didn't really listen to me. He has recommended a SIPP managed by them 
I have read loads since the report and understand the difference between active and passive funds, SIPPS and ready mades or do I go with an IFA and pay a small fortune when passive funding, which, people tell me does just as well .
I have 10 years left to retirement.
I just can't stop mulling it over. How do people decide?
Sorry if this is a stupid question 

Did you actually use an IFA - were they independent? How was their time reimbursed?

Yes completely independent.
They are big enough to whether someone not following through on their report with them I guess!!
I feel pretty railroaded by their calls at times and told them to stop

jazzy23

tacpot12 said:

In my experience, when it comes to pensions, there are three sorts of people:

1) those who avoid the problem and either do nothing or randomly pick a firm to manager their Pension. (Many of these end up paying far to much)
2) those that are inclined to read and research, and eventually have the confidence to DIY
3) those that take the time to search for a good IFA that offers a pension management service at a reasonable price.

I took a DIY approach, but I've had a personal pension since the early 1990s so have had time to learn. MY professional work also involved financial modelling, so I was well placed to understand personal pensions, but you don't have to be any sort of maths or computer wizard to manage your own pension. 

There are some important concepts to learn, but the availability to ready made portfolios and multi-asset funds means that most people can invest successfully with realatively little trouble.

Clearly, the logical choice is between 2) and 3).

Yes sadly I have just gone with things blindly before and have done lots of homework.
I don't know why I feel so anxious.
Maybe it's the word pension!!!

jazzy23

Hoenir said:

Which ready made passive portfolio's are you considering? 

I was looking at nutmeg active tbh

Albermarle

 or do I go with an IFA and pay a small fortune when passive funding, which, people tell me does just as well .

A common misconception is that paying an IFA is just so they can invest for you.
They will also help you do it in the most tax efficient way and be on the lookout for changes in pension legislation etc that can effect you amongst other things.
If you DIY your pension, you have to have some basic knowledge about investing, but also some basic knowledge about . pension tax relief, different ways of withdrawing from a pension etc
In general it is a bit more complicated when you are retired and withdrawing a pension than accumulating it.

It seems relatively unusual that this IFA is being so pushy and pestering you. Normally they are not short of work, not the good ones anyway.

Cus

jazzy23 said:

Cus said:

Did you tell the IFA your concerns?

To his report. No. But they are ringing me constantly it feels like a hard sell tbh.
I wasn't concerned about his recommendations, just what he put in the report about my circumstances 

What was the issue with the circumstances?

kempiejon

Albermarle said:

 or do I go with an IFA and pay a small fortune when passive funding, which, people tell me does just as well .

A common misconception is that paying an IFA is just so they can invest for you.
They will also help you do it in the most tax efficient way and be on the lookout for changes in pension legislation etc that can effect you amongst other things.
If you DIY your pension, you have to have some basic knowledge about investing, but also some basic knowledge about . pension tax relief, different ways of withdrawing from a pension etc
In general it is a bit more complicated when you are retired and withdrawing a pension than accumulating it.

It seems relatively unusual that this IFA is being so pushy and pestering you. Normally they are not short of work, not the good ones anyway.

I knew how to invest long before I started being too concerned with what and how I ran my pensions.
You are dead right that an IFA can should do more for their clients.
Sticking it in a global tracker in a low cost SIPP is easy. Government legislation and changes, asset allocation, tax and rebates, salary sacrifice, annuities, risk tolerance etc all far more involved need boarder knowledge than picking an investment accumulating for 20 years and taking a safe withdrawl rate at 60 odd.

I spend much longer looking after the admin of pensions and income than I do thinking about the investments.

Bostonerimus1

Take a look at multi-asset funds like the VLS series from Vangaurd or the equivalents from HSBC, Fidelity etc. These will give you a diverse mix of stocks and bonds. Open your SIPP with your preferred provider and move the money to the multi-asset fund of your choice. Job done!

Pat38493

jazzy23 said:

I am completely paralyzed. I need to move my personal pension. I had a free report done by an IFA but I felt he didn't really listen to me. He has recommended a SIPP managed by them 
I have read loads since the report and understand the difference between active and passive funds, SIPPS and ready mades or do I go with an IFA and pay a small fortune when passive funding, which, people tell me does just as well .
I have 10 years left to retirement.
I just can't stop mulling it over. How do people decide?
Sorry if this is a stupid question 

When you say a "free report" by an IFA, what do you mean?  If the person really is an IFA, they will not work for free, although they might give you a proposal that outlines what they will charge and so on - are you sure this was an IFA and not an FA?