The contents of your shoe box have already been taxed before you put the money in.
Having 3 pensions?
- Thread starter longers
- Start date
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The contents of your shoe box have already been taxed before you put the money in.
A SIPP, yes, but don't pay over the odds for running it, because many reliable providers will do it free - mine <cough> is here http://www.sippdeal.co.uk/
Property in a SIPP is unlikely to be "your best bet". First, most people's major asset is their home and to stick your second largest asset into property as well is inherently risky. Second, the transactional and compliance costs of property in a SIPP are high and most managers reckon that it isn't cost effective below about £150,000 - you don't get much of a commercial building for £150,000, even in Yorkshire (and you cannot have individual residential buildings in a SIPP.) No, what you need in a SIPP is a core of low cost equities/bonds with a yield at or slightly above inflation. That is easily achievable with a little thought.
OP
OP
longers
Legendary Member
I quite like the idea of this but am not sure I've got the bottle to try it.
BigonaBianchi
Yes I can, Yes I am, Yes I did...Repeat.
- Location
- Iskele TRNC & Mordor UK
What kind of pensions do you have? Are these all private plans or are there any old company/defined benefit schemes amoungst them?
Look at your asset mix in any managed funds inside your private plans and check the management fees, but I wouldn't be to fussed about having different providers as if the charge is a flat 1% say across each provider it's the same as having all your eggs in one basket with one company and less 'risky' in terms of provider 'stayability'.
Moving pensions around between providers could involve a fee..readjusting your asset mix in your funds may or may not involve a fee if they have a free annual switch, which I recall many did.
Performance in a pension fund is to a degree dictated by your attitude to investment risk. The closer you get to retirement the less risk you may wish to take, finally locking in the gains say a few years prior to your retirement date. Most providers have suitable cautious fund options available for that purpose.
I would assess my pensions in terms of asset mix first, are they spread across a good range of assets, including cash, property, bonds, equities etc. If you are looking for higher gains you may need to accept a higher risk and hold more in equities for example, and vice versa if you are more cautious and happy to accept lower returns. That is a very basic view and it will be different for each investor.
Many plans have a bog standard 'managed' fund option with 'medium' approach to investment risk as well as more specialised funds in higher risk areas. If the bulk of your funds are held in the standard managed fund option you should expect only standard returns. You likely have the option to switch exisiting funds and/or future contributions across several other more aggresively managed funds (higher risk) in an attempt to boost gains.
Clearly there are no guarantees and making such free internal switches needs to based on a good understanding of the fund, market conditions, fees etc. A Good IFA can help there for a cost. There is also a lot of info online if you are brave enough and have time to get to grip with it all.
Other things to consider are the options each provider gives you at retirement. Traditionally the fund is used to buy annuities. Make sure your providers have an Open market option allowing you to buy an annuity from any provider (not just them) on retirement, most do. Also find out about phased draw down options.
I'm guessing these are 3 private plans (not ex company final salary defined benefit schemes).
Anyway that's just my 2p worth FWIW.
I suggest...educate yourself about your plans, read the blurb and understand it. Decide what your aims are in terms of returns and risk you are prepared to take to get them. Then source a good IFA, and agree a fee for their services in advance. The greater your fund value/contributions the better the value vs. fee will be for you.
Look at your asset mix in any managed funds inside your private plans and check the management fees, but I wouldn't be to fussed about having different providers as if the charge is a flat 1% say across each provider it's the same as having all your eggs in one basket with one company and less 'risky' in terms of provider 'stayability'.
Moving pensions around between providers could involve a fee..readjusting your asset mix in your funds may or may not involve a fee if they have a free annual switch, which I recall many did.
Performance in a pension fund is to a degree dictated by your attitude to investment risk. The closer you get to retirement the less risk you may wish to take, finally locking in the gains say a few years prior to your retirement date. Most providers have suitable cautious fund options available for that purpose.
I would assess my pensions in terms of asset mix first, are they spread across a good range of assets, including cash, property, bonds, equities etc. If you are looking for higher gains you may need to accept a higher risk and hold more in equities for example, and vice versa if you are more cautious and happy to accept lower returns. That is a very basic view and it will be different for each investor.
Many plans have a bog standard 'managed' fund option with 'medium' approach to investment risk as well as more specialised funds in higher risk areas. If the bulk of your funds are held in the standard managed fund option you should expect only standard returns. You likely have the option to switch exisiting funds and/or future contributions across several other more aggresively managed funds (higher risk) in an attempt to boost gains.
Clearly there are no guarantees and making such free internal switches needs to based on a good understanding of the fund, market conditions, fees etc. A Good IFA can help there for a cost. There is also a lot of info online if you are brave enough and have time to get to grip with it all.
Other things to consider are the options each provider gives you at retirement. Traditionally the fund is used to buy annuities. Make sure your providers have an Open market option allowing you to buy an annuity from any provider (not just them) on retirement, most do. Also find out about phased draw down options.
I'm guessing these are 3 private plans (not ex company final salary defined benefit schemes).
Anyway that's just my 2p worth FWIW.
I suggest...educate yourself about your plans, read the blurb and understand it. Decide what your aims are in terms of returns and risk you are prepared to take to get them. Then source a good IFA, and agree a fee for their services in advance. The greater your fund value/contributions the better the value vs. fee will be for you.
fossyant
Ride It Like You Stole It!
- Location
- South Manchester
I'd personally contribute to the one that your current employer is paying into, if they are at all ?
I think I've got 4 pensions, yup, counts 1,2,3,4 and the one I currently contribute to is the one my employer does.
I moved my first pension into my second when things were much rosier in the early 90's (would have had 5 if I didn't) but have left the others where they are as charges wipe any value out if you move the funds.
I think I've got 4 pensions, yup, counts 1,2,3,4 and the one I currently contribute to is the one my employer does.
I moved my first pension into my second when things were much rosier in the early 90's (would have had 5 if I didn't) but have left the others where they are as charges wipe any value out if you move the funds.
Chris Norton
Well-Known Member
- Location
- Boston, Lincs
I have 3 currently.
One with profits jobby with the co-op, been paying in since I was able to and thats my main one. After 25 years it is indeed worth a few quid. But another 17 to go.
A standard life one from a previous employer who paid in to it at the same time. Currently no payments been into it for 10 years but the investment profile was classed as virtually "seat of the pants" by the advisor at the time. Due to me having the co-op one I wanting the extra risk factor.
Now, I have one with current employer who pays in 3% which is the same as I pay in.
I do not intend to merge all of them simply cos of the charges. I also firmly believe in taking a pension from an employer who is paying in to it because it's a ruddy pay rise for nothing.
One with profits jobby with the co-op, been paying in since I was able to and thats my main one. After 25 years it is indeed worth a few quid. But another 17 to go.
A standard life one from a previous employer who paid in to it at the same time. Currently no payments been into it for 10 years but the investment profile was classed as virtually "seat of the pants" by the advisor at the time. Due to me having the co-op one I wanting the extra risk factor.
Now, I have one with current employer who pays in 3% which is the same as I pay in.
I do not intend to merge all of them simply cos of the charges. I also firmly believe in taking a pension from an employer who is paying in to it because it's a ruddy pay rise for nothing.
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