Pension. Is it worth moving?

[Vinterceptor]

I took out a pension about 25 years ago and get an annual statement as to how it's performing. I was recently approached by a FA (the guy who set it up in the first place who now works at a different company) who has suggested that it would be in my interests to move it to a platform where it can be constantly scrutinised and managed more easily. The one major catch is the 2% transfer fee that equates to over 3k plus ongoing management costs of 1.2% pa (currently paying about 1%)
Over the years I have always resisted attempts to get me to move it elsewhere as no guarantees on performance can be given.... so what is the point in moving it?
I have seen regular articles that say it is wise to move a pension. But why and how can it possibly be quantified when no guarantees can be given????
Also may be worth bearing in mind I am now 60 so don't have that many years of contributions left
Any input or thoughts greatly appreciated. Cheers John

 

[Centaur]

My unprofessional advice as a retired IFA would be to put your toe so far up his arse he would be chewing leather.

 

[ianrobbo1]

Didn't they get all shitty when companies started to do this and they were just grabbing the interest leaving peeps with worse deals ??

 

[derek kelly]

Very doubtful that you’d make the 3k back in the time till you draw your pension.

 

[johnboy]

Does your current provider issue a loyalty bonus at the end of the term, if so you would miss out.

 

[andyBeaker]

I took out a pension about 25 years ago and get an annual statement as to how it's performing. I was recently approached by a FA (the guy who set it up in the first place who now works at a different company) who has suggested that it would be in my interests to move it to a platform where it can be constantly scrutinised and managed more easily. The one major catch is the 2% transfer fee that equates to over 3k plus ongoing management costs of 1.2% pa (currently paying about 1%)
Over the years I have always resisted attempts to get me to move it elsewhere as no guarantees on performance can be given.... so what is the point in moving it?
I have seen regular articles that say it is wise to move a pension. But why and how can it possibly be quantified when no guarantees can be given????
Also may be worth bearing in mind I am now 60 so don't have that many years of contributions left
Any input or thoughts greatly appreciated. Cheers John

The answer is simply that no two cases are the same.

As a point of principle I wouldn't deal with an iFA who operates like that. There are plenty about if you want to review The options.

As an aside, we have just topped up Mrs A's state pension s she will get the full amount - that was pretty decent value, assuming she lives to see it!

 

[Quiney]

The answer is simply that no two cases are the same.

As a point of principle I wouldn't deal with an iFA who operates like that. There are plenty about if you want to review The options.

As an aside, we have just topped up Mrs A's state pension s she will get the full amount - that was pretty decent value, assuming she lives to see it!

Does she fall into one of these where the retirement age has been put back and then put back again.
Its a sore point in our house as SWIMBO's went back twice.

 

[ianrobbo1]

Does she fall into one of these where the retirement age has been put back and then put back again.
Its a sore point in our house as SWIMBO's went back twice.

Same with Yvo, she is NOT happy about it. I personally think it stinks, where has the money gone ??

 

[Quiney]

Same with Yvo, she is NOT happy about it. I personally think it stinks, where has the money gone ??

The 'money' has gone no where. There is no individual pot, essentially what gets paid in this week pays out next week.
They knew people were living longer years ago but chose to do nothing about it. When they did, the short period they have done it over was very cruel to a small group of women.

 

[Centaur]

The solution for Evo is simple Ian. If she guarantees to die at 75 rather than the current expected age of 80+ she can have the full pension. These are unfunded schemes in that unlike company pension schemes there is NO pot of money. Current pensions are paid out of current contributions topped up as an expense. For example the biggest cost to education authorities is paying out existing pensions and not paying teachers or maintaining schools.

 

[andyBeaker]

Does she fall into one of these where the retirement age has been put back and then put back again.
Its a sore point in our house as SWIMBO's went back twice.

I think hers has been put back once. I'll have to"wait until 67, but it will be a nice little bonus when it arrives.

Having packed up at 56 I need to live until 64 to outfox my pension provider - until that time I am behind, after that time I am a winner!!

 

[Centaur]

As my Pru pension was non-contributory it is win for me from day one.

 

[ianrobbo1]

All well and good, but Yvo is a cancer survivor and so is less likely to even reach pensionable age, And as they keep moving the goalposts all the dosh she's paid in will go to some foreign twat or the government for them to waste in some other way, and yes I understand about today's earners paying for those receiving pensions now.

 

[Quiney]

As my Pru pension was non-contributory it is win for me from day one.

My old man has been in receipt of his Lancashire Police pension for more years than he paid into it. (but then again his best mate died 18 months into his retirement)

 

[Minkey]

When I started working my retirement was going to be 60 now it's 66 I have also noticed places that give concessions to older people are raising their limits from 60 to 65 I think the world is out to get me

 

[andyBeaker]

When I started working my retirement was going to be 60 now it's 66 I have also noticed places that give concessions to older people are raising their limits from 60 to 65 I think the world is out to get me

I had planned to pack up at 50, the increase to 55 took effect of 5th April in the year I was 50.... my birthday being 22 June.