Should I transfer my FSAV to a company pension AVC

gally56

Hi since 1992 I have had a FSAVC from Lincoln Financial Group and recently I got my end of year statement.
It has my retirement date for January 2034 with a plan value of £6,078.94 and a transfer value of 4,755.12 my pension illustration states "Your pension value at retirement is estimated to be £794 per year.

Ihave a company pension running along side this but to see the value of £794 after 15 years of contributions (I am currently paying 26.67 a month) It doesnt inspire me for the future.
So should I be looking maybe to take my £4,755.12 toa my companys AVC or should i not be to worried and the contributions after 15 years match to my £794 a year estimated pension forecast.
Or is there a way I can better my current FSAVC as it stands. As you can probaly tell my rather naive on how this all works.

Just for the record my paln value of £6.078 is an accumalated total of the following
71.324 units of Equity Growth Pen (unit price £20.141) at £1,436.54
19.225 units of Equity growth PEn (unit price £5.025) at £96.61
208.855 units of Schroder pension (Unit price £13.971) at £2,889.97
56.973 units of Schroder pension (unit price £3.474) at £197.92
519.373 units of Perpetual Pension (unit price £2.641) at £1,371.66
71.511 units of Perpetual pension (unit price £1.206 at £86.24

Many thanks to all of you who take the time to read this post and to whatever help and advice you may give.

dunstonh

Chances are the investment options on the Lincoln personal pension (as that is what it is now) is better than the in-house AVC. That said, the Lincoln plan is likely to have higher charges compared to modern alternatives. So a review of whether its worth moving to Stakeholder, personal, sipp or in-house AVC would make sense.

to see the value of £794 after 15 years of contributions (I am currently paying 26.67 a month) It doesnt inspire me for the future.

You havent got a value of £794. You have a projected income of £794.

What do you expect to get. You are likely to live around 30 years and you are paying for around 40 years. So, not a lot of difference. You are only paying £26.67pm but getting back £66.16. You havent said what the projection rate is or if it includes inflation or indexation but either way your expectations are far too high.

Transferring it into the AVC isnt going to change that. Indeed, if the investment options are particulary weak, it could end up worse.

EdInvestor

gally56 wrote: »

Hi since 1992 I have had a FSAVC from Lincoln Financial Group and recently I got my end of year statement.t has my retirement date for January 2034 with a plan value of £6,078.94 and a transfer value of 4,755.12

What this means is that if you try to move this policy, Lincoln will deduct 22% of its value to pay the charges that would have been deducted if you had left the policy to maturity. :mad:

It is almost always best in these cases just to bite the bullet, incur the costs and move the money to somewhere it can perform better.

BTW those retirement quotes can be misleading in that they often give a rate for an annuity with index linking, a guarantee and a spouse's pension. A level annuity will pay somewhat more.On the other hand, 26 pounds a month is too little to generate much even over the long term.

gally56

thank you for reply you say i should perhaps look at other more modern alternatives Stakeholder, personal, sipp or in-house AVC can you give a brief description of the pros and cons of these in very simple layman terms.
I know I am not payind wildy extravagant contributions each month but before i raise my gain so to speak i want to get the best prodcut fisr but once again thank you for takling the time to reply

EdInvestor

gally56 wrote: »

thank you for reply you say i should perhaps look at other more modern alternatives Stakeholder, personal, sipp or in-house AVC

Can you pay more directly into the company pension itself? Who is the provider of the in-house AVC and what funds does it offer?