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AMC too high ot about right?
cs90
Posts: 38 Forumite
Hi everyone.
I had a workplace pension set up a couple of years ago with "The People's Pension". After doing some research I've seen that the AMC is 0.5%.
After looking around online it says an AMC of 0.5% can eat into your retirement pot but up to 11% by the time you're due to retire. This got me slightly worried.
Am I able to ask my employer if I can change the pension provider?
Would it be better for me to open a SIPP with a lower charge and get employer to pay in that instead?
Just looking to see if anyone knows what I could do..
Thanks
I had a workplace pension set up a couple of years ago with "The People's Pension". After doing some research I've seen that the AMC is 0.5%.
After looking around online it says an AMC of 0.5% can eat into your retirement pot but up to 11% by the time you're due to retire. This got me slightly worried.
Am I able to ask my employer if I can change the pension provider?
Would it be better for me to open a SIPP with a lower charge and get employer to pay in that instead?
Just looking to see if anyone knows what I could do..
Thanks
0
Comments
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After looking around online it says an AMC of 0.5% can eat into your retirement pot but up to 11% by the time you're due to retire. This got me slightly worried.
That is a bit like saying if Tesco didnt charge their 1% profit margin the food you buy you would be £x better off.
Nobody does it out of love.
You are free to use any pension provider you like. Your employer wont pay into it though. So, you will lose the free money.Am I able to ask my employer if I can change the pension provider?Would it be better for me to open a SIPP with a lower charge and get employer to pay in that instead?
What makes you think a SIPP will be cheaper?
SIPPs are for experienced investors aimed at people looking for more advanced investment options. Investments that may cost 2% p.a. Yet you are worried about 0.5%.
Why do you think 0.5% is high?
0.5% is lower than the 0.75% cap. Its cheaper than a stakeholder pension (1.5% for 10 years and then 1% thereafter).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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