Pension/Investments back to Jan level

I’ve just checked my Pension Plan and it looks like it’s back to the level it was at the start of the year. I mean take the value in Jan and add additions over the last 10 months and it’s level. tbh it didn’t take as long as I thought for this to recover. 6 months ago I was thinking a good 2 years to get back the losses!

Mine too, they are actually at their highest ever now. I wish I could invest like these guys do!

I’m hoping to retire in 4 1/2 years which will be 5 years early. I know you’re supposed to share your plans with the provider so they move funds into safer investments as you approach the magic day. I really must consider doing this now things have bounced back. It will be at the expense of reduced growth I suspect.

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Same here ours has recovered to back where it was this time last year, I’ve postponed retirement for at least a year.

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I’m planning on a couple of years… or I was before all this cov stuff started. We’ll have to see now. I moved my plan to a ‘safer’ level a couple of years ago. Didn’t stop it crashing nearly hundred grand in two months though!

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It can be done automatically if you choose lifestyle funds, I would talk to your IFA

Problem is a huge swathe of personal pensions were sold to members of employer sponsored schemes without appropriate advice.

( Warning :warning: :warning::warning: a #*@ serious rant is available about the inappropriate investment choices of some members )

If it has recovered, you may want o consider consolidating it via cash or low risk gilts.

A vey large risk is often overlooked which is inflation

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Had an interesting chat with my IFA a few days ago around potential switching to income funds post retirement.

His view is this approach is now passe, as such funds have been hammered, in part due to Covid and the likes of the oilco’s stripping back DVs. Suggestion now is to stay in a balanced growth fund (with inflation protections) and keep to say 3 1/2% annual drawdown level.

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Long term ethical investment here. I don’t watch them minutely but I have the impression our funds have weathered Covid fairly well.

I am happy with these choices and picking those sorts of funds for over 25 years our IFA points out we are well ahead, and that we invest for the long term.

and management fees!

I whittled my IFA down to 1%. I’m not sure, compared to what others get charged, if that’s good but it seemed fair to me.

IME, 1% for purely ongoing IFA fees (exc transactions) is high unless this includes platform & fund management fees and SIPP admin?

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I think it include everything… perhaps I should check? So what’s a ‘good’ fee?

For market investments, I’m on 0.25% as platform fee** and 0.5% for IFA (exc transactions) - noting this excludes underlying fund management fees.

** an odd concept but far cheaper than managing investments on a retail basis, where the fees charged are far higher (hence why the likes of M&G and others have differing share/unit classes, not just income & accumulation).

I’m mainly defined benefit with the main one kicking in at 60. The defined contribution is a relatively small amount split between 2 company Aviva schemes. I’ll use these to keep me going until the others are available at 65 and the state pension at 67.

Now you mention it 0.5% sounds familiar. I’ll check.

I have a few pensions, just retired so cashed in one, then got someone in to talk about the others. I wanted someone to help me decide how best to take them, but his only interest was in the ones that he could transfer into his name (so he can start to get commission), and the company ones he said just call those own pension companies. So no help in working out how best to take all of them. Currently I am working of my own devised spreadsheet. Have others found anyone that will focus advice on retirement drawing rather than ongoing investment?

email sent to IFA to check this.

Steve

I would shop around with differing IFAs and avoid some of the major names, as IME their fees for advice and ongoing investment can be steep.

Pensions are a difficult subject matter, what with transfer values and differing benefits packages. Consolidation may be an option…it all depends…and it does come at a cost.

And much will depend on personal tax position et al.

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I keep a number of benchmarks under watch, some are more appropriate than others.

Some of you may find the chart below interesting, illustrating MSCI benchmark results ytd and representing different ‘risk’ strategies after adjustment for ‘typical’ charges to show results net of running costs.

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Check that’s appropriate for you. It was certainly a strategy employed by some in the days when you had to buy an annuity to draw from your pension savings, which meant many people sold all their pension holdings on a single day.

If that’s not the route you’re going to take, perhaps now opting for a more flexible approach with regular or semi regular drawings throughout your lifetime, then a more frequent, at least annual, risk review and perhaps consideration of diverse strategies may be more suitable. Check with your adviser.

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No commissions are payable on pensions (in UK) since 2012.

Thanks for this, that thought had crossed my mind.

I don’t actually have an adviser as I think my needs are quite simple.

Only 14% of my pension funds are in DC s(based on transfer valuations) so most of it will be provided for by 3 DB schemes plus the state pension which isn’t factored into the 14%.

I’m happy to do adhoc drawdown in the 5-7 years to bridge the gap. I’m likely to consolidate into one drawdown plan, the one I’m contributing into allows this. If things go well a pair of Titan 606’s may be viable!