Scottish widows pension?

Tight_Fart

About 15 years ago I needed a commercial mortgage and Barclays advised a pension linked one with Scottish widows. Thankfully about 10 years ago I realised that it would not meet the final repayment and changed the mortgage to a repayment but I kept the pension scheme going.
Now when I took it out they advised to split it between 2 funds saying I could change at any time.
However I never have and although overall the funds look hopeless (they show about 2% growth) one is particully bad.
Part of me feels I should stop paying in and leave it as a paid up policy, the other half thinks that I should change the funds and continue paying (we are not talking fortunes)
Having phoned them they no longer offer advice and have told me to go down to my local LLoyds branch. But they say do not stop paying as it a fixed 9.8% annuity?

Should I just keep paying or look into doing something else with it?

Sorry for waffling, it's my first post.

dunstonh

You need independent advice. Not bank sales reps.

The returns on the fund are low because of the guarantees that are in place. The guaranteed annuity rate is about 50% higher (possibly more depending on options that go with it). So, the benefit of the GAR has to be put in context along with the performance.

Lloyds bank may sell Scottish Widows products but thats all. They wont have a clue on how to advise you on an old "real" SW policy and not a Lloyds bank version of the SW product.

Should I just keep paying or look into doing something else with it?

Only a cost/benefits analysis will be able to tell. That means you doing one or an IFA doing one.

Tight_Fart

Thanks that does make sense.
I didn't think I would get anywhere in a local branch.

My worry is that an independant adviser will advise me to change something so he earns his commision, where as should I be better off staying put he loses a sale, is that unfair of me to think like that?

DavidLaGuardia

Tight_Fart wrote: »

My worry is that an independant adviser will advise me to change something so he earns his commision, where as should I be better off staying put he loses a sale, is that unfair of me to think like that?

Choose a fees based adviser then.

jem16

Tight_Fart wrote: »

My worry is that an independant adviser will advise me to change something so he earns his commision, where as should I be better off staying put he loses a sale, is that unfair of me to think like that?

I think it is unfair and has not been my personal experience. However if you do feel this way choose to pay a fee as David says.

dunstonh

My worry is that an independant adviser will advise me to change something so he earns his commision, where as should I be better off staying put he loses a sale, is that unfair of me to think like that?

Transfers have to be justified and a good many plans with GARs are worth keeping unless you are young and have a higher risk profile. Plus, some GARs have restrictions on when they apply and how they apply. These restrictions can make some GARs pointless (i.e. only if paid anually in arrears on single life basis with no guarantees).

You cannot switch nilly willy. There has to be good reason. That doesnt mean it doesnt happen but it is a minority. Plus, you now know that the GARs could be valuable so you would expect the research and recommendation to factor in the GAR. If the reasons are keep it then you will know its fair. If its dump it and transfer then you would expect to see the GAR discounted and why its been discounted.

If you are paranoid about bias then go fee basis as suggested above.