Small pension

datlex
datlex Posts: 2,239 Forumite
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in Pensions, annuities & retirement planning
I have a very small pension currently worth about £2400 with Aviva which was started when I was at an old employer in the last millenium. It was originally with a different provider, but due to various sales of companies has ended up with them. In the last year, it did not grow at all not even enough to cover the charges Aviva are making. They have stated also that the transfer value is only £1500. Not sure why their charges are so high.

Previously I have always asked for my money to go in low risk funds. I am wondering whether given the small amount if I would be better asking for it to be moved to a higher risk fund with the potential of more growth? I am not sure of the implications of doing so if the fund decreases. Can you get to a point with a very small pension where the fund has decreased to such an extent that the fund is insufficient to cover fees?
Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.

Comments

  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    datlex wrote: »
    Can you get to a point with a very small pension where the fund has decreased to such an extent that the fund is insufficient to cover fees?

    Yes - and that was exactly what happened with some old-style personal pension contracts where charges were extortionate. Could you transfer to another fund/provider with lower charges?
  • LHW99
    LHW99 Posts: 4,192 Forumite
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    May be worth enquiring if Aviva can offer a more up to date product that would suit. They may not put (such high) charges on if you transfer to another product within the company.
  • xylophone
    xylophone Posts: 44,302 Forumite
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    http://forums.moneysavingexpert.com/showthread.php?p=74110218#post74110218

    Had you considered a transfer to NEST?
  • datlex
    datlex Posts: 2,239 Forumite
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    Brynsam wrote: »
    Yes - and that was exactly what happened with some old-style personal pension contracts where charges were extortionate. Could you transfer to another fund/provider with lower charges?
    to transfer to other provider would cost me £900
    LHW99 wrote: »
    May be worth enquiring if Aviva can offer a more up to date product that would suit. They may not put (such high) charges on if you transfer to another product within the company.
    I will bespeaking to them about changing to a new fund. Not sure yet whether to ask them about a higher risk product.
    xylophone wrote: »
    http://forums.moneysavingexpert.com/showthread.php?p=74110218#post74110218

    Had you considered a transfer to NEST?
    I already have a pension with Nest through auto enrollment. I could transfer but then I face losing £900.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    Have you picked up the phone and asked Aviva why one value is £2,400 and the other £1,500?

    I'll be amazed if it's a fee.
  • datlex
    datlex Posts: 2,239 Forumite
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    PeacefulWaters wrote: »
    Have you picked up the phone and asked Aviva why one value is £2,400 and the other £1,500?

    I'll be amazed if it's a fee.
    I am going by the letter they sent which states that.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
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