Pension Funds Underperforming

rubrenus

I have retired recently and had a pension fund with a well known provider. Unbeknown to me the fund had been consistently under performing. This meant that not only was I unable to get any tax-free cash but was also unable to transfer the fund to another annuity provider. Be sure to have the performance of your private pension fund checked regularly by an advisor as the company will not let you know if it is under performing.

dunstonh

This meant that not only was I unable to get any tax-free cash but was also unable to transfer the fund to another annuity provider.

Sounds like a section 32 buy out bond with GMP. However, they are normally transferrable although it would usually mean losing the GMP which can then make it inefficient to do so because of the guarantees.

Be sure to have the performance of your private pension fund checked regularly by an advisor as the company will not let you know if it is under performing.

Very sound advice. Investing is not something you can ignore. Things change and products sold years ago often become obsolete and better comes along. However, dont assume poor performance is reason alone to move. There will always be bad years (like 2007) where you get your statement and its gone down a bit. There may also be plans which have guarantees and these are the reason there is no growth on the pension.