Soldato
- Joined
- 11 Apr 2006
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- 7,209
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be nice to see those lines get further apart hehehe
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
- Start date
a lot of peoples pensions is invested in british companies/bonds or at least using them to purchase shares in US companies.
the s&p500 is at a record high at the moment but due to the weak dollar and FX rates, it's not helping people who prevously purchased US stocks and bonds.
my pension is out pacing my ISAs at the moment, and my ISA is setup to more risky....
the s&p500 is at a record high at the moment but due to the weak dollar and FX rates, it's not helping people who prevously purchased US stocks and bonds.
my pension is out pacing my ISAs at the moment, and my ISA is setup to more risky....
The employer contribution is not eligible for tax relief, because it doesn't come from your income, it comes from the employer.I think that's a bit silly - your still loosing out on "free" money - 3% plus tax relief.
The NEST Higher risk fund is fine longer term - nothing much wrong with the returns. Might not be the "sexiest" fund but does a perfectly fine job.
Nest Higher Risk Fund
1 year annualised 5.5 %
3 years annulised 4.3 %
5 years 11.0 %
10 years 7.9 %
Since launch - 9.0%
Nest Pensions Fund Factsheets | Nest Pensions
Download factsheets about the performance of Nest Pensions funds and unit prices.www.nestpensions.org.uk
You also know you'll be automatically enrolled back into the scheme in 3 years time again.
I'm working a 3-day week, so 3% minus the nest commission isn't a lot on a monthly basis. Took the decision that I can make more investing the £32K in an alternative fund than taking the small monthly contribution and being stuck with the nest performance. Also given my SIPP has a flat yearly fee, if I take the 5% that will now be in my salary and put it into my SIPP, it'll go in without any commission.
I won't be in employment in 3 years time.
It is a bit shocking that in the fund performance tables, they make ZERO mention that the make-up of the sharia fund since the beginning of the year is substantially different from what it prior, which means the performance tables are meaningless for that fund.
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What is the commission you keep mentioning?
Making money did a podcast episode on Nest, and how they ended up changing their Sharia fund because they found most of the holders weren't holding it because they wanted an Islamic fund but because it was all equities.
They do get NI contribution relief, as that's what I get some of it put in to my pension.
If you opted out of the automatic pension fund, would you get some of the that 3% employer's contribution?
Honestly If I was retiring in 3 years and was only working 3 days a week, I wouldn't bother putting it to my pension. I would rather stick it all in a fixed savings account or premium bonds.
Nest takes 1.5% of all contributions, including employer and tax relief.
Which is why i had it. THey changed it because they prefer low volitile funds. It's still Sharia compliant.
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Outrageous. Basically theft
Are you stuck with nest? It really sucks for me as a fund, I wasn't convinced by their arguments at all. I'm fortunate I can just go straight into my SIPP
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Thats the one my employer uses, no option. Hence why i've decided just to stop contributions and transfer the pension (you can't transfer out of nest whilst there are contributions coming in).
ttps://www.bbc.co.uk/news/articles/ckgj84ejd9wo
The article also mentions calls to increase the minimum amount paid in via auto-enrolment. Hopefully they mean employer contributions and not just employee contributions - I've only worked places where they pay the bare minimum.
Pretty grim statistic that.
The article also mentions calls to increase the minimum amount paid in via auto-enrolment. Hopefully they mean employer contributions and not just employee contributions - I've only worked places where they pay the bare minimum.
nothing new- having worked for 25 years in financial services - I see tons of people with nothing and then asking my about retirement in their mid 40's/50's and suddenly thinking £100 a month will get them a great retirement
But increase AE is a decent idea - but hard to force employers to do it as they will simply cut back on pay rises / other benefits to fund it.
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It is rough, and I don't know what the answer is. Even people stacking 20, 25% into company pensions might fall short of their expectations in some scenarios.
Personally I'm putting money away in other vehicles (SIPP, ISA, mortgage overpayments etc) because I don't want to pin everything on me staying employed to 55/57/67 and those investments being enough to give me the lifestyle I want.
Point is, even if the min percentages were doubled (and as said it would be a big burden on employers) it's not going to suddenly fix everyone's futures.
Personally I'm putting money away in other vehicles (SIPP, ISA, mortgage overpayments etc) because I don't want to pin everything on me staying employed to 55/57/67 and those investments being enough to give me the lifestyle I want.
Point is, even if the min percentages were doubled (and as said it would be a big burden on employers) it's not going to suddenly fix everyone's futures.
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There are age restrictions on accessing your SIPP as well.
I will fall into that timing (the 2050 bit)... Awesome
I am a little surprised that one of the reasons that people will be poorer than previous generations is the due to companies ending Final Salary pension schemes and some companies not even offering a scheme excluding the Government mandated WPPS (Work Place Pension Scheme) I mean.
So you are going to have people that cannot afford homes, due to the cost of getting a home, and then retiring with minimal income; having spent their money on renting to the wealthier cohorts, and having to continue to pay exorbitant rents..... Kind sticks in my throat a little TBH.
The government needs to further incentivise companies to be more generous with the DC workplace pension scheme contributions. If a company offers better contribution tiering (e.g. matching up to a higher percentage and/or boosted contributions if you reach a higher tier) then people are more likely to contribute more. But the main kicker is pay has remained too low in comparison with outgoings, so it will always be a problem to get people to pay in more.
Also people will happily pay £100 a month for the lastest and greatest phone
£80-£100 a month for a gym they hardly go to, £600 a month on a leased car they will never own but it looks cool on the driveway etc
Then you ask them to consider their future and paying into a pension at a few hundred a month, and they look at you as if you have horns on....
Todays generation are living for today, unlike last generation that worried more about the future and what it looked like for them
Not saying living for today isn't good or bad - just seeing so many people who either say "i'll be dead before I retire" or "I can't afford it" then you look out the window at the £600 a month lease car....
Yeah, that's why I made the point about using multiple. My SIPP is locked in at 55, so at least that gives me a narrower window that I need to plan for with other options.