My Virgin Pension

mrgiii

I've been paying £300 a month into my Virgin Stakeholder pension since 2001. At the time they were top of quite a few best buy tables, now, after doing a search on here, I'm not that sure they're quite as good a provider as they were when I first started my pension.

So I've few questions, if anybody can help me.

Has the service from Virgin really gone downhill that much since 2001 ?

Should I be looking at changing pension provider ?
If so, how do you go about it, will I have to pay a fee to Virgin for changing ?

dunstonh

At the time they were top of quite a few best buy tables

Virgin have never been top of any best buy tables. Their offering was bog standard from day one. It only showed well in a couple of newspapers who only reviewed a limited number of providers and didnt compare on a like for like basis. Probably favouring their advertisers

Has the service from Virgin really gone downhill that much since 2001 ?

Its not service. Its the product that is poor. 2 or 3 funds only available. Charges that are not discounted over a full commission stakeholder (so you are paying for the cost of advice but not getting any advice). A couple of times they have run special offers by knocking 0.1% off the annual managment charge but they rely on brand to get business. Not quality of product.

Should I be looking at changing pension provider ?

You are paying £300pm into a ftse tracker. That is crazy investing. That is 100% investing into one sector (which will result in lower returns over the long run) and its 100% into medium/high risk investments and the typical novice investor is more likely to be cautious in risk.

If so, how do you go about it, will I have to pay a fee to Virgin for changing ?

You either find a pension that offers the features and investments you want to utilise or get an IFA to do it (never used a tied agent). Virgin will not charge.

mrgiii

I'm confused now... I constantly hear on the radio and TV, how over the long term the ftse is a safe place to invest and long term your investments will go up.

Are you now dismissing this and saying the ftse's not a good place to invest long term.

I've still got 20+ yrs before I draw on my pension pot, if it was only 5 then I'd be more concerned about investing in the ftse, as it is, I don't see anything to bad with having my money invested in there.

I am however concerened about how much I get charged and will be looking at the possibility of changing pension provider in the near future.

dunstonh

constantly hear on the radio and TV, how over the long term the ftse is a safe place to invest and long term your investments will go up.

Its not safe and whoever is saying that is irresponsible. A FTSE100 tracker fund is risk rated at 7 out of 10 on the risk scale. The average person is 5.

7 years ago, the FTSE100 dropped 45% in value. It hasnt recovered. So, how would you feel if your pension nearly halved in value now?

Are you now dismissing this and saying the ftse's not a good place to invest long term.

Its never been the best place for 100% of your money. Never has, never will.

I don't see anything to bad with having my money invested in there.

Eggs all in one basket. No downside protection or protecting of profits. All focused on one country and one economy and if FTSE100 then heavily weighted to just 5 companies.

I am however concerened about how much I get charged and will be looking at the possibility of changing pension provider in the near future.

Your priorities are wrong. You are investing towards retirement. You are not saving charges towards retirement. Altering the pension to save charges will give you about 0.4% a year. Getting the investment spread correct can give you 2-5% a year average.