Pension Advice / Pension Review

[Tom B]

Team:

As a 37year old with two active pensions into which I pay £195 a month before tax relief (i think) I would like someone to sit with and review or review and report what I have currently. - Which is a stakeholder pension with standard life dating from the inception of stakeholder pensions in the early 2000s into which I Pay £55 a month and a Local Government Pension Scheme Policy.

I'm pretty confident about the LGPS scheme but I'd like to see if the Stakeholder scheme is doing the best it can. The fees seem high and the performance uninspiring - but then I am not sure if I am reading it right! I'm not sure Stakeholder pensions can be moved or if i can stop paying in and open something better.

Looking online just points me to various online calculators.

How do I locate a reputable local advisior?
Would a general financial adviser suffice?
How much should I expect to pay?

Perfectly happy to spend some time and money to be told it's not worth changing anything.

 

[vickster]

First point - word of mouth from family, friends or colleagues?

 

[I like Skol]

Watching with interest. One of the many who has a pension/s and know I really should do something with them to make sure I am not just squandering good money. But what the heck am I supposed to do and who do I trust?

 

[Tom B]

First point - word of mouth from family, friends or colleagues?

Fathers FA has retired and the MIL uses a friend.

But the problem remains how do I know if they're any good and offering good vfm.

 

[vickster]

Fathers FA has retired and the MIL uses a friend.

But the problem remains how do I know if they're any good and offering good vfm.

Speak to two or three?
I have an accountant who helps with matters/recommendations

 

[neil_merseyside]

https://www.pensionsadvisoryservice.org.uk/
They gave me a thorough review on the phone (face to face available) I supplied figures/details up front and they listed all my options, this was for actual retirement but they should be able to guide you I'd have thought.
All free and no selling of any products just recommendations of product type (it's nearly always an annuity!) and to work for as long as possible, as every year short of planned age can mean a 5% drop in income.

And although he hinted that income drawdown was my best option it isn't documented, industry/Gov fear is it's likely to lead to fast cars/boats/bikes/booze and the spendthrifts then ending up skint on a state pension.

 

[glasgowcyclist]

For choosing a suitable advisor, Paul Lewis gives good tips here. https://money.radiotimes.com/news/how-to-choose-a-financial-adviser/
Note he is adamant that you stay away from those who charge a percentage.

To show you you how much of your investment, over time, you would lose to a percentage-charging IFA, see this simple calculator. https://larrybates.ca/t-rex-score/.

 

[rogerzilla]

It can cost £2,000 for financial advice on a pension, which is why most people leave their money in the default managed fund. This has probably lost 20-25% of its value in the last month (that's a decade's contributions for some). DC pensions are terrifying.

 

[alicat]

most people leave their money in the default managed fund. This has probably lost 20-25% of its value in the last month (that's a decade's contributions for some). DC pensions are terrifying.

That's just scaremongering and not helpful to the OP who asked the question three months ago and is probably sorted by now:

1. Most default funds are set up to weather the storms and will be invested in bonds as well as shares. When shares do badly, bonds and other investments do well. Yes, the default fund may have dropped but it won't be anything like 20% and it will come back over the life of the investment.
2. Most people these days have a DC (Defined contribution) pension and don't have the option of a Defined Benefit (final salary/careeer average) so they need to do research and ask questions just as the OP is doing. They are not terrifying unless you are the sort to be easily terrified.

 

[I like Skol]

And besides, any DC fund worth it's salt will taper the assets holdings towards the end to move funds out of the more risky share and property based products and into more stable bonds and money. This should reduce the turbulence in the last few years as you approach retirement.

 

[Tom B]

Just an update on this one.

I have found a local financial advisor who will look at what I have for free and only charge if they can do better.

I just haven't got my ducks in a row and been to see her yet.

 

[sheddy]

Another recommendation for the 50+ pensionwise telephone consultation.

 

[ianrauk]

Another one here watching with interest.
My pension matures next year.
I'm planning on taking a small percentage out to pay off my mortgage and either buy an annuity or carry on paying into the scheme.
I may give the pensionwise peeps a call.

 

[Tom B]

Another recommendation for the 50+ pensionwise telephone consultation.

Bloody agists! I'm 13 years off that!

 

[sheddy]

Ok. I guess you can start pension contributions in 5 years ?