Help with Pension

Space_Monkey

Hi,

I had a pension with my work through Standard Life, but was made redundent in December 2004. I'm now with another company who don't deal with pensions. What is my best course of action;

Make the pension private and pay in myself?

Cash it and put in savings in stead?

Leave it as it is and start a new one? (although it seems to have lost value this year)

Any help and advice would be appreciated.

dunstonh

Make the pension private and pay in myself?

Possibly. That or compare it to modern options and see whats best.

Cash it and put in savings in stead?

You cant do that.

Leave it as it is and start a new one? (although it seems to have lost value this year)

Its probably lost value this year as the stockmarket has dropped (as has property and the tail end of last year fixed interest funds went down a little). Investments zig zag in value so that is to be expected.

Space_Monkey

Hi dunstonh,

Many thanks for the feedback, pretty much what I was expecting. The first option is what I want to do but they told me to seek financial advice first. I have no knowledge of the modern options, do you know where I can find infomation?

dunstonh

do you know where I can find infomation?

two choices. Do it yourself by looking into the 60 or so providers that are actively transacting or use an IFA. A number of companies are not authorised to give advice (most nowadays) so when you start asking them questions of an advice nature then they steer you to IFAs (or their own tied salesforce). If you restart the SL plan, then you are almost certainly paying the same charges (if not more) than a plan arranged by an IFA on commission basis. So, if you are happy with commission terms then it makes sense for you to get a local IFA to come and see you to check the pension. Effectively it will be a zero cost option over your current position and it may save you money as well as having someone do all the paperwork.

doing it yourself will probably be cheaper (unless you are in your 30s or upto mid 40s) but you have to do the work and need to decide if you have the time, skills and ability to pick pension provider and the investment portfolio.

EdInvestor

Space_Monkey wrote: »

Hi,

I had a pension with my work through Standard Life, but was made redundent in December 2004.

Find out what the charges are, what it is invested in now and what additional fund choices there are, then post back here for a view on whether it's worth keeping this one on or whether you should move it.

Another alternative since you are without employer conts (and if you are a basic rate taxpayer, because the tax relief is pretty poor) is to contribute to a stocks and shares ISA.This is a lot more flexible than a pension and has the same investment options, and your capital remains accessible.Best done through a discount broker such as https://www.h-l.co.uk

Retired_I.F.A.

Still doing an advertising job for H +L Ed?

All IFA's are so called "discount brokers" As all commissions/fees are negotiable and have been for many years, long befoe you were born.

EdInvestor

IFAs all tend to have a grudge against Hargreaves Lansdown because they have pinched so many customers with their low charges and superior service, I hear.Not a customer myself in fact, as I'm a direct share investor, which is not their mainstream market .I don't really use unit trusts, too expensive..

dunstonh

IFAs all tend to have a grudge against Hargreaves Lansdown because they have pinched so many customers with their low charges and superior service, I hear.

I have never known an IFA lose a penny to HL. Its a totally different market. You just made that up.

What is noticeable is that fee based advisers (where no bias can be seen or percieved to exist) tend to be less receptive to SIPPs as a product due to the higher charges that they have and the increased options that are available. Whilst some may find those options useful and beneficial others will not and some may use them without realising the risks they are taking. Media coverage of the over sale of SIPPs is easily found on google and even the FSA have issued warnings that they believe they are being over sold.

I have no grudge against HL. They have a good product for the DIY market. I think their marketing at times is misleading and they get away packaging advice as non-advice which others would not get away with. They play the media well. However, they pay the media well which helps them even more.

I do think your constant promotion of them as the best option for everyone is dangerous to those posters who are not up to the requirements of investing in a SIPP. You also ignore all the cheaper products which exist.

I dont use HL. I dont use a SIPP for my own money. I use a personal pension and its cheaper than HL and gives me just about the same investment options for funds. Professionally, I cannot use HL anyway as they are an IFA not a product provider. However, even if I could I wouldnt as there are alternative SIPP providers that IFAs can use that can equal the charges or personal pensions and stakeholders that are cheaper.

Basically, if you have to ask the question about how you invest your money and which pension is best then a SIPP is not for you.