Pensions
I've had pensions since starting work at 16, initially a Local Government scheme and then company schemes after moving to the private sector. Having just moved jobs I now need to get a personal pension that the company pays 5% into matched by 5% from me through salary sacrifice (unless I don't opt out of automatic enrollment, I'm not quite sure what happens then as I'd be the only one in the company not opting out).
My company schemes have always been managed although in one job I used to get an annual review where I could sit down and pick where things were invested with the FA from our broker. Now it seems my choices are to get a managed personal scheme through a FA and presumably pay a fee or go down the SIPS route and manage my own investments. Assuming that is the case does have any thoughts on:
a) The sort of fee you pay for FA input and whether that gets paid via the pension pot
b) How easy it is to manage a SIPS with next to no experience
Suggestions for decent schemes also welcome!
Comments
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Everyone in the company has opted out? Can I ask why?- Genesis Croix de Fer
- Dolan Tuono0 -
Get a Vanguard one and pick a fund that retires around the time you plan to.1
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FA is going to cost you while your funds carry the same risk of market fluctuation. Ok, your FA might be prescient or lucky or... maybe just takes a %? fee for doing the same admin as you can do yourself.
Look at HL, AJBell and others. A good source of more knowledgeable stuff from forum members is LemonFool, used to be MotleyFool years back until they binned the forum. Members carried on independently.
I have a SIPP.1 -
My IFA says just stick it in an index-linked tracker that matures when you do.
The statistics read that something like 13% of asset managers beat the market indices in any given year. After 5 consecutive years, the chance is near zero.1 -
This and as TBB says use Vanguard which will derisk in line with your target retirement date.shirley_basso said:My IFA says just stick it in an index-linked tracker that matures when you do.
The statistics read that something like 13% of asset managers beat the market indices in any given year. After 5 consecutive years, the chance is near zero.
It is incredibly easy to set up on their platform as it is intended for people like you going direct.1 -
If only it was easy to transfer my pension over.surrey_commuter said:
This and as TBB says use Vanguard which will derisk in line with your target retirement date.shirley_basso said:My IFA says just stick it in an index-linked tracker that matures when you do.
The statistics read that something like 13% of asset managers beat the market indices in any given year. After 5 consecutive years, the chance is near zero.
It is incredibly easy to set up on their platform as it is intended for people like you going direct.0 -
Thanks, just looked at Vanguard. Their 2035 option should be perfect.
As a follow up question, is the general wisdom to leave my other pensions where they are to spread the risk around rather than lumping them all into the same scheme? I think two are with Aegon and the other is through People's Pension. Obviously I'll be leaving my local government scheme where it is as it is a DB scheme!0 -
Worth looking at what the non DM ones are charging you in fees- Genesis Croix de Fer
- Dolan Tuono0 -
My IFA says lump them all in together, which I haven't done, so I have 3 pots at present. Conventional wisdom says try to avoid fees where possible.Pross said:Thanks, just looked at Vanguard. Their 2035 option should be perfect.
As a follow up question, is the general wisdom to leave my other pensions where they are to spread the risk around rather than lumping them all into the same scheme? I think two are with Aegon and the other is through People's Pension. Obviously I'll be leaving my local government scheme where it is as it is a DB scheme!0 -
my transfer from Aviva was painlessTheBigBean said:
If only it was easy to transfer my pension over.surrey_commuter said:
This and as TBB says use Vanguard which will derisk in line with your target retirement date.shirley_basso said:My IFA says just stick it in an index-linked tracker that matures when you do.
The statistics read that something like 13% of asset managers beat the market indices in any given year. After 5 consecutive years, the chance is near zero.
It is incredibly easy to set up on their platform as it is intended for people like you going direct.0 -
Aegon - noooooo! Awful, awful company. Get your money away from that incompetent shower. And don't move it to another shower such as the Pru, Scottish Widows.
And no to 100% passives - really not sensible.
You need a managed portfolio solution that will blend active and passive funds under the bonnet. The portfolio will be pro-actively managed at a portfolio level - ie rebalancing, changes to asset allocation on an ongoing basis etc.
Be careful what 'de-risking' as you approach retirement actually means. If you are going to go into drawdown in retirement, you don't de-risk, you move from a growth mandate to an income mandate as you'll still be invested for 30 years. If you're going to purchase an annuity then you'd be moving away from equities in the last few years, but do you want to be replacing them with bonds?!!!
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We got some free IFA when our company changed pension providers.Pross said:Thanks, just looked at Vanguard. Their 2035 option should be perfect.
As a follow up question, is the general wisdom to leave my other pensions where they are to spread the risk around rather than lumping them all into the same scheme? I think two are with Aegon and the other is through People's Pension. Obviously I'll be leaving my local government scheme where it is as it is a DB scheme!
Advice was generally move all the defined contribution ones into the new company schemeexcept there was one where the management charge was lower than what was on offer so he suggested keeping that one separate and to keep paying in the minimum each month to keep the lower charge.
I need to have another look at mine as it was a while ago now.1 -
I've found Aegon customer services pretty useless when I've had queries.rick_chasey said:lol what's the beef with Aegon, Pru or SW?
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lumped all my non-db into a sipp, well worth it
aside from the simplified management/visibiity, it is more straightforward for inheritance - some pension schemes retain discretion on what happens when you snuff it, with a sipp it's your decision
most is now with aj bell, huge range of investments available, no charges on funds (if you hold enough), i use a wealth manager to run this, do tax planning etc., but you could equally diy
used to have some other investments with vanguard (moved to ajb now), the swm's comment was vanguard are perfectly fine, nice low fees, only downside is limited choice, but if you are leaving it to vanguard that's not really an issue
only real quibble i had with vanguard was speed/timing of executing instructions, but they were still waaaaaaay better than some others
if you've not done so, check if you can apply for 'lifetime allowance protection' on your total pension pot - between the db and other schemes i was x times over the lta, but at least i could lock-in a past lta higher than the current one
my bike - faster than god's and twice as shiny1 -
In cash it is, but then you are out of the market for weeks.surrey_commuter said:
my transfer from Aviva was painlessTheBigBean said:
If only it was easy to transfer my pension over.surrey_commuter said:
This and as TBB says use Vanguard which will derisk in line with your target retirement date.shirley_basso said:My IFA says just stick it in an index-linked tracker that matures when you do.
The statistics read that something like 13% of asset managers beat the market indices in any given year. After 5 consecutive years, the chance is near zero.
It is incredibly easy to set up on their platform as it is intended for people like you going direct.0 -
Non existent service fundamentally.rick_chasey said:lol what's the beef with Aegon, Pru or SW?
Pru will do anything to stop money leaving them, and Pru funds are glorified smokes and mirrors with profits shite.
Aegon - woeful turnaround times and incompetence everywhere.
Scottish Widows - well if Clerical Medical are anything to go by (they company they swallowed), they make Aegon look absolutely wonderful to deal with. I was quoted 73 working days to process a letter of authority last November, heard of 12 months to process death claims, had a deceased spouse written to twice after they didn't both to register the death, etc, etc0 -
Commonly overlooked issue btw is pre-2015 DC pension death benefits.
Most will pay out a lump sum outside the estate on death before retirement - sounds ok, except the pot would then form part of the surviving spouse's estate on their death so potentially subject to 40% IHT, plus you've lost the tax efficient pension wrapper.
BUT post 2015 DC personal pensions will offer beneficiaries' drawdown which is a far superior death benefit. Post remains in the pension wrapper. If death is before 75 then beneficiary can take out what they want tax free, whatever their age. If death is at 75 or above, beneficiary withdrawals are at marginal rate.0 -
lol OK. Interesting.Dorset_Boy said:
Non existent service fundamentally.rick_chasey said:lol what's the beef with Aegon, Pru or SW?
Pru will do anything to stop money leaving them, and Pru funds are glorified smokes and mirrors with profits shite.
Aegon - woeful turnaround times and incompetence everywhere.
Scottish Widows - well if Clerical Medical are anything to go by (they company they swallowed), they make Aegon look absolutely wonderful to deal with. I was quoted 73 working days to process a letter of authority last November, heard of 12 months to process death claims, had a deceased spouse written to twice after they didn't both to register the death, etc, etc
My company pension is with Scottish Widows. There is always a danger for me in that I know a bit about it because I know the actual portfolio managers and get references on all of them, but not enough to actually know anything formally about investments.
They seem to pick decent PMs.0 -
I believe the LTA protection ship sailed some years ago.sungod said:lumped all my non-db into a sipp, well worth it
aside from the simplified management/visibiity, it is more straightforward for inheritance - some pension schemes retain discretion on what happens when you snuff it, with a sipp it's your decision
most is now with aj bell, huge range of investments available, no charges on funds (if you hold enough), i use a wealth manager to run this, do tax planning etc., but you could equally diy
used to have some other investments with vanguard (moved to ajb now), the swm's comment was vanguard are perfectly fine, nice low fees, only downside is limited choice, but if you are leaving it to vanguard that's not really an issue
only real quibble i had with vanguard was speed/timing of executing instructions, but they were still waaaaaaay better than some others
if you've not done so, check if you can apply for 'lifetime allowance protection' on your total pension pot - between the db and other schemes i was x times over the lta, but at least i could lock-in a past lta higher than the current one
Well done on needing it0 -
still worth checking, especially for anyone who's been in a db scheme for a long time, the 2016 protection is worth an extra c. 250k vs. current ltasurrey_commuter said:
I believe the LTA protection ship sailed some years ago.sungod said:lumped all my non-db into a sipp, well worth it
aside from the simplified management/visibiity, it is more straightforward for inheritance - some pension schemes retain discretion on what happens when you snuff it, with a sipp it's your decision
most is now with aj bell, huge range of investments available, no charges on funds (if you hold enough), i use a wealth manager to run this, do tax planning etc., but you could equally diy
used to have some other investments with vanguard (moved to ajb now), the swm's comment was vanguard are perfectly fine, nice low fees, only downside is limited choice, but if you are leaving it to vanguard that's not really an issue
only real quibble i had with vanguard was speed/timing of executing instructions, but they were still waaaaaaay better than some others
if you've not done so, check if you can apply for 'lifetime allowance protection' on your total pension pot - between the db and other schemes i was x times over the lta, but at least i could lock-in a past lta higher than the current one
Well done on needing it
from memory...
db pot value = 2016 expected pension value * 20
then simply add the dc scheme 2016 pot values
if total is > 1.25 million, get the protection
surprisingly easy to apply for online, just a few minutesmy bike - faster than god's and twice as shiny0 -
SG you are right, you can still apply in certain circumstances:
https://gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance#individual-protection-2016
So worth doing if you can. That said, if you are several times over the LTA then I'm surprised you're still bothering to get up and go work."I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0 -
I think those who had over £1m invested in pensions in 2016 and haven't got financial advice yet are a pretty niche market.0
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I had several schemes from each of my previous employers so have consolidated all the old DC ones into one provider and left my current employers DC scheme running separately as that's still getting contributions from the company and me - will decide what to do with that when I leave/retire. (I also have one small old DB scheme which is best kept separate).Pross said:Thanks, just looked at Vanguard. Their 2035 option should be perfect.
As a follow up question, is the general wisdom to leave my other pensions where they are to spread the risk around rather than lumping them all into the same scheme? I think two are with Aegon and the other is through People's Pension. Obviously I'll be leaving my local government scheme where it is as it is a DB scheme!
The OH has a DB scheme from the only place she ever worked, which gives her a bit of certainty and spreads our risk."I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]1 -
and still making contributions 6 years later is still more nichekingstongraham said:I think those who had over £1m invested in pensions in 2016 and haven't got financial advice yet are a pretty niche market.
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not sure if I mentioned this but the cap on annual inflation increases is cummulative so she should get the full 10% +Stevo_666 said:
I had several schemes from each of my previous employers so have consolidated all the old DC ones into one provider and left my current employers DC scheme running separately as that's still getting contributions from the company and me - will decide what to do with that when I leave/retire. (I also have one small old DB scheme which is best kept separate).Pross said:Thanks, just looked at Vanguard. Their 2035 option should be perfect.
As a follow up question, is the general wisdom to leave my other pensions where they are to spread the risk around rather than lumping them all into the same scheme? I think two are with Aegon and the other is through People's Pension. Obviously I'll be leaving my local government scheme where it is as it is a DB scheme!
The OH has a DB scheme from the only place she ever worked, which gives her a bit of certainty and spreads our risk.1 -
Sometimes it makes sense - occupational schemes such as my current one has my employer putting in twice what I do, so if I 'save' money by stopping my contributions I lose twice that.surrey_commuter said:
and still making contributions 6 years later is still more nichekingstongraham said:I think those who had over £1m invested in pensions in 2016 and haven't got financial advice yet are a pretty niche market.
"I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0 -
You didn't, but thanks for that.surrey_commuter said:
not sure if I mentioned this but the cap on annual inflation increases is cummulative so she should get the full 10% +Stevo_666 said:
I had several schemes from each of my previous employers so have consolidated all the old DC ones into one provider and left my current employers DC scheme running separately as that's still getting contributions from the company and me - will decide what to do with that when I leave/retire. (I also have one small old DB scheme which is best kept separate).Pross said:Thanks, just looked at Vanguard. Their 2035 option should be perfect.
As a follow up question, is the general wisdom to leave my other pensions where they are to spread the risk around rather than lumping them all into the same scheme? I think two are with Aegon and the other is through People's Pension. Obviously I'll be leaving my local government scheme where it is as it is a DB scheme!
The OH has a DB scheme from the only place she ever worked, which gives her a bit of certainty and spreads our risk."I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0 -
If you opt out we get a 10% pay rise which makes the decision more interestingStevo_666 said:
Sometimes it makes sense - occupational schemes such as my current one has my employer putting in twice what I do, so if I 'save' money by stopping my contributions I lose twice that.surrey_commuter said:
and still making contributions 6 years later is still more nichekingstongraham said:I think those who had over £1m invested in pensions in 2016 and haven't got financial advice yet are a pretty niche market.
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