Jump to content
House Price Crash Forum
Mags

Request For Pension Advice

Recommended Posts

I have a couple of pensions - one is a frozen occupational pension from when I was employed, and one is a private pension that I took out when I went self-employed. I'd now like to increase my pension contributions and have been advised to take out a new pension altogether with a different company to spread the risk. I have a few questions... first, does this sound like good advice? Second, what else could I be doing? I still have 30 years before I will be drawing on my pensions and have been paying into one or other of them since I was 22. Thanks for any thoughts, advice :)

Share this post


Link to post
Share on other sites

I have a couple of pensions - one is a frozen occupational pension from when I was employed, and one is a private pension that I took out when I went self-employed. I'd now like to increase my pension contributions and have been advised to take out a new pension altogether with a different company to spread the risk. I have a few questions... first, does this sound like good advice? Second, what else could I be doing? I still have 30 years before I will be drawing on my pensions and have been paying into one or other of them since I was 22. Thanks for any thoughts, advice :)

Personally I think spreading the risk is good advice. However, I think you are better off speaking to a Financial Advisor on this matter, not some internet nerds like us! ;)

Share this post


Link to post
Share on other sites

Personally I think spreading the risk is good advice. However, I think you are better off speaking to a Financial Advisor on this matter, not some internet nerds like us! ;)

Thank you! It was an FA who suggested taking out a third pension but I just wondered if there was benefit in not doing that and piling more into what I've got. I like the idea of spreading risk but I do feel pretty ignorant when it comes to pensions. Thanks again :)

Share this post


Link to post
Share on other sites

Spreading your assets sounds like a good idea. If you go for another pension just watch those charges especially if someone suggests a SIPPS. Also it may be best to talk to a fee paying financial planner rather than an IFA who may just go for the pension that gives him the biggest commission.

Thanks for that. I'll be finding out more about it today so will ask those questions. :)

Share this post


Link to post
Share on other sites

I have a couple of pensions - one is a frozen occupational pension from when I was employed, and one is a private pension that I took out when I went self-employed. I'd now like to increase my pension contributions and have been advised to take out a new pension altogether with a different company to spread the risk. I have a few questions... first, does this sound like good advice? Second, what else could I be doing? I still have 30 years before I will be drawing on my pensions and have been paying into one or other of them since I was 22. Thanks for any thoughts, advice :)

How long's a piece of string? If an FA gave you advice did he advise you on your affairs holistically or did he just shoot for the sale. Get an adviser to review your affairs overall and give you holistic advice.

Re retirement planning, what income (in today's money do you need in retirement) how much will your current funds get you so how much do you need to put in assuming, charges, inflation and investment growth etc

Doubt the occup scheme is frozen - its either moving with the equity market or rising by inflation each year if final salary.

hth

fp :)

Share this post


Link to post
Share on other sites

How long's a piece of string? If an FA gave you advice did he advise you on your affairs holistically or did he just shoot for the sale. Get an adviser to review your affairs overall and give you holistic advice.

Re retirement planning, what income (in today's money do you need in retirement) how much will your current funds get you so how much do you need to put in assuming, charges, inflation and investment growth etc

Doubt the occup scheme is frozen - its either moving with the equity market or rising by inflation each year if final salary.

hth

fp :)

Thanks a lot! I probably didn't use the right term with the occup scheme - what I meant was that when I left I had to stop paying into it. I have no idea what's happening to it - I don't get sent anything at all on it. I have had holistic advice from the FA - he's been very good, but I just wanted to get other opinions too. To be honest I don't anticipate retiring as such, but it would be great not to have to keep earning. Thanks again :)

Share this post


Link to post
Share on other sites

Transfering my pensions into a SIPP was/is the best move I've ever made - I'm now in control and don't feel to be being ripped off/overcharged by 'some suit in the city'.

I.E. - Just looking at some single payment funds I'm transfering which had a deduction of 5% first year, 4.5% second year, 1% every year after that and then a 5% charge for withdrawl. In 23 years they doubled my investment! And you wonder why 'ordinary' folk now use property as a pension vehicle?

http://www.sippdeal.co.uk/charges.aspx are not expensive at all and you get access to plenty of investment types to use in your fund.

Oh. And, when I retire, I can just take the interest from my investments as income instead of an annuity (yet another City rip off). When I die my estate gets the fund (minus Gordons take of course).

Edited by 737

Share this post


Link to post
Share on other sites

Transfering my pensions into a SIPP was/is the best move I've ever made - I'm now in control and don't feel to be being ripped off/overcharged by 'some suit in the city'.

I.E. - Just looking at some single payment funds I'm transfering which had a deduction of 5% first year, 4.5% second year, 1% every year after that and then a 5% charge for withdrawl. In 23 years they doubled my investment! And you wonder why 'ordinary' folk now use property as a pension vehicle?

http://www.sippdeal.co.uk/charges.aspx are not expensive at all and you get access to plenty of investment types to use in your fund.

Oh. And, when I retire, I can just take the interest from my investments as income instead of an annuity (yet another City rip off). When I die my estate gets the fund (minus Gordons take of course).

That's even more to think about! Thanks a lot though. I've been recommended a Scottish Equitable Flexible Pension Plan. Trouble is, the more I read about it the less clear I am!

Share this post


Link to post
Share on other sites
Guest Winners and Losers

That's even more to think about! Thanks a lot though. I've been recommended a Scottish Equitable Flexible Pension Plan. Trouble is, the more I read about it the less clear I am!

Hiya Mags - I have just joined my company pension scheme and it is with Scott Eq, but somewhere there is another thread (on here) where someone has asked a similar question and there are some responses specifically to Scott Eq. Does your heart still skip a beat when you see Billy Shears?? ;) How's that RichYumm - he didn't even bite. :(

Share this post


Link to post
Share on other sites

Hiya Mags - I have just joined my company pension scheme and it is with Scott Eq, but somewhere there is another thread (on here) where someone has asked a similar question and there are some responses specifically to Scott Eq. Does your heart still skip a beat when you see Billy Shears?? ;) How's that RichYumm - he didn't even bite. :(

Thanks WaL! I'll take a look.

And yes, it still skips a beat! I'm looking forward to the next pic... he changes it every now and then... just to tease I think... :unsure:;)

Share this post


Link to post
Share on other sites

That's even more to think about! Thanks a lot though. I've been recommended a Scottish Equitable Flexible Pension Plan. Trouble is, the more I read about it the less clear I am!

Scot Eq are crap which tells me everything about the financial products' salesman. It is an anerage company sold by average salespeople. It is not even close to what's good.

FAs are slick salespeople - see www.thepfs.org - find an adviser

Share this post


Link to post
Share on other sites

I've got a Scot Eq plan with 0.6% annual charges on any fund. I can switch funds online.

I have contributed about 4k from my income. I've had a £500 tax rebate (due to being a higher rate taxpayer) from it as well.

Contracting out of SERPS, getting tax relief on contributions, capital growth and dividends plus employer contributions (very small amount, about £1700), it is now worth 22k.

Not bad for 3 and a bit years!

frugalista

Share this post


Link to post
Share on other sites

Thank you! It was an FA who suggested taking out a third pension but I just wondered if there was benefit in not doing that and piling more into what I've got. I like the idea of spreading risk but I do feel pretty ignorant when it comes to pensions. Thanks again :)

The FA has a huge incentive to get you to open a new pension -- they'll get the commission on it.

The up front costs to starting a new pension can be very high depending on how they're structured.

Share this post


Link to post
Share on other sites

I've got a Scot Eq plan with 0.6% annual charges on any fund. I can switch funds online.

I have contributed about 4k from my income. I've had a £500 tax rebate (due to being a higher rate taxpayer) from it as well.

Contracting out of SERPS, getting tax relief on contributions, capital growth and dividends plus employer contributions (very small amount, about £1700), it is now worth 22k.

Not bad for 3 and a bit years!

frugalista

That's very impressive!

Scot Eq are crap which tells me everything about the financial products' salesman. It is an anerage company sold by average salespeople. It is not even close to what's good.

FAs are slick salespeople - see www.thepfs.org - find an adviser

So the obvious question is... what is good?

The FA has a huge incentive to get you to open a new pension -- they'll get the commission on it.

The up front costs to starting a new pension can be very high depending on how they're structured.

I appreciate this, but I approached him. I wasn't sure whether to add to my existing pension or take out a new one. I am probably more likely to take out a new one now as the advice I've had from a range of sources points that way. The one I've been recommended does have high initial charges but it rewards those who keep their pensions for more than ten years, which is what I would do. Does that sound foolish to you? Thanks a lot all :)

Share this post


Link to post
Share on other sites

I had difficulties dealing with Scottish Equitable. All 3 people I spoke to in the head office (Edinburgh) were rude, unhelpful and kept interrupting me mid-sentence as if they were choking for a sh!te and dying to get away from the phone.

The folk in London who eventually sorted me out couldn't have been more helpful and professional.

The Edinburghers probably just didn't like me 'cos I'm a weegie and they resented this because we are better at fighting than them.

Anyway, they'll get a shock when I move it all to a SIPP, when I can be bothered going through the whole process again.

Share this post


Link to post
Share on other sites

That's very impressive!

So the obvious question is... what is good?

I appreciate this, but I approached him. I wasn't sure whether to add to my existing pension or take out a new one. I am probably more likely to take out a new one now as the advice I've had from a range of sources points that way. The one I've been recommended does have high initial charges but it rewards those who keep their pensions for more than ten years, which is what I would do. Does that sound foolish to you? Thanks a lot all :)

Yes, it sounds dumb, potentially.

Of course the FA has recomended you a product with high initial charges. Why would they suggest you use one with low charges which won't pay them any comission?

I suggest you head over to the pensions section of moneysavingexpert or the pensions board on the Motley Fool and look for some recomendations there.

There are a number of providers around who will rebate the fees back into your pension and charge you very little. Choose a pension provider that lets you use a fund supermarket to choose from the whole range of funds on the market, and put your money into decent funds with low charges. Mine's split between a FTSE tracker and a managed 'ethical' fund at the moment, but that's more from inertia than anything else.

Edited by pharm

Share this post


Link to post
Share on other sites

I've got a Scot Eq plan with 0.6% annual charges on any fund. I can switch funds online.

I have contributed about 4k from my income. I've had a £500 tax rebate (due to being a higher rate taxpayer) from it as well.

Contracting out of SERPS, getting tax relief on contributions, capital growth and dividends plus employer contributions (very small amount, about £1700), it is now worth 22k.

Not bad for 3 and a bit years!

frugalista

Aye and the next three years will be as good? For you perhaps but not for 99% of users of ScotEq and more importantly the advisers who use ScotEq don't understand markets and investing.

Share this post


Link to post
Share on other sites

The FA has a huge incentive to get you to open a new pension -- they'll get the commission on it.

The up front costs to starting a new pension can be very high depending on how they're structured.

http://www.moneyweek.com/file/4574/pension-1811.html

The standard level of personal pension fees; typically an initial 3% of premiums then 1.5% of your fund per year.

Moreover, since standard charges are deducted from premiums, they can seriously erode the value of your fund, says Jill Insley in The Observer. Someone contributing £200 a month to a Lifetime Account would pay £1,225 in charges and have a fund worth £440,599 after 35 years assuming annual growth of 7%. If you invested the same into a standard plan, the fund’s value would be diminished by £139,194 over 35 years, leaving you just £301,405.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.