Trying to understand pension changes and feeling out of my depth

Cobbler_tone

NickPoole said:

I'm pretty sure the charges in TDF are higher than in the Multi Asset fund which is what decided me.

The TDF is 0.15% and Multi Asset 3 is 0.13%. Not much difference, £100 a year if you held £500k. The Equity Index 3 is 0.1%

NickPoole

Cobbler_tone said:

NickPoole said:

I'm pretty sure the charges in TDF are higher than in the Multi Asset fund which is what decided me.

The TDF is 0.15% and Multi Asset 3 is 0.13%. Not much difference, £100 a year if you held £500k. The Equity Index 3 is 0.1%

ooh should I be in that then? Looks liikea FTSE tracker

I will check whether it will cost me anything to switch

dunstonh

NickPoole said:

Cobbler_tone said:

NickPoole said:

I'm pretty sure the charges in TDF are higher than in the Multi Asset fund which is what decided me.

The TDF is 0.15% and Multi Asset 3 is 0.13%. Not much difference, £100 a year if you held £500k. The Equity Index 3 is 0.1%

ooh should I be in that then? Looks liikea FTSE tracker

I will check whether it will cost me anything to switch

Switching from a multi-asset fund to 100% UK equity is a big jump up in risk and would also be poor quality investing.  100% UK equities is putting all your money on UK companies.  What about US, European, Asia, Japan and then your defensive assets?

Cobbler_tone

NickPoole said:

Cobbler_tone said:

NickPoole said:

I'm pretty sure the charges in TDF are higher than in the Multi Asset fund which is what decided me.

The TDF is 0.15% and Multi Asset 3 is 0.13%. Not much difference, £100 a year if you held £500k. The Equity Index 3 is 0.1%

ooh should I be in that then? Looks liikea FTSE tracker

I will check whether it will cost me anything to switch

Just be mindful that anything in equities will tend to gain and lose with more volatility. Even on something like £100k it will go up and down £300-500+ a day. The further you are from retirement the more you can afford to air towards 'higher risk' investments but don't look at it every day/week!
Don't overthink it either. It sounds as though you might be chasing something that you'll never have the answer to!

You'll be on a similar platform to me, so just read the fund fact sheets, where things are invested with the historical performances and respective fees. Failing that, let the fund manager make their default decisions and forget about it, focusing on the max you can afford to contribute.

NickPoole

I like the low charge on the Uk Equity and it outperforms Multi Asset  - but there will be transaction charges if I switch which I am not sure about.

My AVC is all about the tax relief really and I have £40K of index linked pensions in addition. If the FTSE takes a plunge I don't have to take any money out of it!

Maybe I'll leave my uncrystalised fund in Multi Asset and move drawdown fund into UK equity..? although still incurring transaction charges when I move stuff to drwdown.

I will investigate these transaction fees

jimjames

NickPoole said:

Cobbler_tone said:

NickPoole said:

I'm pretty sure the charges in TDF are higher than in the Multi Asset fund which is what decided me.

The TDF is 0.15% and Multi Asset 3 is 0.13%. Not much difference, £100 a year if you held £500k. The Equity Index 3 is 0.1%

ooh should I be in that then? Looks liikea FTSE tracker

I will check whether it will cost me anything to switch

USA index is probably even cheaper. The lowest cost fund doesn't mean it's the best

NickPoole

jimjames said:

NickPoole said:

Cobbler_tone said:

NickPoole said:

I'm pretty sure the charges in TDF are higher than in the Multi Asset fund which is what decided me.

The TDF is 0.15% and Multi Asset 3 is 0.13%. Not much difference, £100 a year if you held £500k. The Equity Index 3 is 0.1%

ooh should I be in that then? Looks liikea FTSE tracker

I will check whether it will cost me anything to switch

USA index is probably even cheaper. The lowest cost fund doesn't mean it's the best

Well, of course. But if it is the cheapest gives it an investment head start.

Albermarle

NickPoole said:

I like the low charge on the Uk Equity and it outperforms Multi Asset  - but there will be transaction charges if I switch which I am not sure about.

My AVC is all about the tax relief really and I have £40K of index linked pensions in addition. If the FTSE takes a plunge I don't have to take any money out of it!

Maybe I'll leave my uncrystalised fund in Multi Asset and move drawdown fund into UK equity..? although still incurring transaction charges when I move stuff to drwdown.

I will investigate these transaction fees

It is unusual in these types of pensions for there to be charges to switch funds.

dunstonh

I like the low charge on the Uk Equity and it outperforms Multi Asset  - but there will be transaction charges if I switch which I am not sure about.

It should be noted that there are extended periods when it wouldn't perform higher.    Over the very long term, it should return higher as its higher risk.  But over shorter periods, you could see drops that halve its value.

There wont be transaction charges for a fund switch.

Well, of course. But if it is the cheapest gives it an investment head start.

The cheapest could include the deposit fund or gilts.     Neither of which gives it a head start.

NickPoole

Let me ponder. I sort of wanted a FTSE tracker fund anyway and it being cheaper does tempt me. Understand that a crash will hit it harder than the Multi Asset fund and also that any recovery might take years!

I don't have to actually do anything except think about it at the moment.

How much is the US index tracker..?