Private pension. I don't understand!

pvr said:
I meant more a case of the pension contribution going into a cash account (now possible with SIP) and just let it sit at interest instead of what return I have had on stocks / shares etc whatever Royal Life deemed fit at the time.
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Gotcha. :thumbsup:
 
Unless your circumstances are unusual/complex (which applies to very few of us) and if you are willing to spend a bit of time reading up (a couple of mornings should be sufficient), an IFA is unnecessary and their fees will significantly eat into your returns. A SIPP invested in a low-cost index tracker fund is all you need.
 
I would love to see the comparison doing the above compared to running it via an IFA for 30 years and see the difference in value.
 
pvr said:
I would love to see the comparison doing the above compared to running it via an IFA for 30 years and see the difference in value.
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For example, say you had a £10,000 investment which you held for 30 years:

With a 2% fee the investor would receive a net return of 3% and would end up with just over £24,270
But with a fee of just 0.5% and the same net return of 3%, that £10,000 fund would be worth around £37,450
That’s a huge difference of £13,180, which goes to show the difference fees can make to the size of your investment.

https://www.thetimes.co.uk/money-mentor/investing/investing-basics/fees-investment-returns
 
Of course, if you don't want to pay IFA fees and fund managers fees, but do want to invest in the stock market, you can simply make your own decisions where to invest and manage your own pot.
 
Scubaregs said:
Do you have less than £30,000?
"If you are considering transferring a defined benefit (final salary) pension to a defined contribution pension of a similar value, you will nearly always need financial advice. By law, and for your protection, you must seek financial advice if the transfer value of your pension is £30,000 or more. But remember that defined benefit pensions typically offer excellent benefits, meaning the FCA’s starting position is always that a final-salary pension transfer is rarely in your best financial interests.
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My pensions aren't that type. When I briefly spoke to both my pension companies, they just 'recommended' I seek financial advice then said they would give me details of their drawdown products.
I haven't gone any further yet, as I don't need them at the minute.
 
Scubaregs said:
and fund managers fees,
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I think we all pay those already (I certainly do). If I could I would cash in all my pensions and stick the money in various banks. Can't though, as the tax bill is too high.
Would only work while interest rates are quite high, aswell.
 
Pension rules are very complicated. Yes you could cash in and stick it in the bank, but the tax bill would be horrendous.
As my IFA said, if I'm making money, your pension is making money, the more I get in fees, the bigger your pension has risen.
It's £15,000 for Lynn's mum to get a hip replacement privately, as much as I would love to give it a bash myself and save Lynn's inheritance fund, some things are best left to the professionals. :lol:
 
At least you can give it a try, the NHS doesn't even bother what that even more.
 
pvr said:
At least you can give it a try, the NHS doesn't even bother what that even more.
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Yeah, but check if she is SE or Sport first or she may end up going round in circles. :roll:
 
You could try the human strut replacements though enuff_zed? How different can it be ...
 
pvr said:
At least you can give it a try, the NHS doesn't even bother what that even more.
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I did offer mate, even bought alcohol, a bowie knife and a rubber mallet for anesthetizing. Kitchin table would be big enough and my mate with a 3D printer reckons he can knock up a hip once we remove the old one.

Mother didn't seem keen though, for some reason. Bit selfish imo.
 
Do one of those Turkey jobs instead, go on a holiday, get her sorted for £2k and pocket the rest?
 
pvr said:
Do one of those Turkey jobs instead, go on a holiday, get her sorted for £2k and pocket the rest?
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I'll just wait till thanksgiving and sell her to the Yanks as a turkey.
 
Started thinking about Pension when passed age of 60 Now nearly 62.

2 small ones with standard life and virgin, stopped paying to those many many years ago when
pot was losing more than i was paying in.

An opt out SERPS ? thingy with Nowich union, not sure what happened to that.

New works statutary one.

and state.

Monthly pay equate's to nothing.

Do not think i have to worry any more as started yesterday round one of Chemotherapy for Advanced stage 4.
The 1st of 4 rounds booked. Have been fast tracked as was only fully diagnosed on the 4th of December.
NHS's Cancer care have been amazing :thumbsup:

So yeah ! Not worried about pension now :P

NB: Tongue, neck and head.
 
That is horrible to read, sorry to hear that. Very nasty :x

Good luck with that treatment
 
[ref]N4LLY[/ref], FFS mate, really sorry to read this. Fantastic attitude, all the best going forwards mate.
 
[ref]N4LLY[/ref],

FFS bud, hopefully the speed of action will help 🤞🏻a good friend of mine unfortunately found themselves in a similar situation and stage in May and is hopefully getting their final review today after successful treatment.

All the best bud, Andy
 
darich said:
If it really is 37k, then that is ridiculously low. That's really surprising
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That figure is misleading. It won't include assets tide into pension schemes that are active and at 67 years old most people will be drawing from their pensions. Many people that age, will have 100s of 1000s tucked in company and civil service type final salary pensions. They can never draw on that as an asset, so it doesn't show up in that £37k figure.

N4LLY, good luck.
 
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