Pension fund performance - do you monitor yours, how is it doing, do you actively change it?

Anyone moved away from the FTSE Global All Cap Index Fund (VAFTGAG) in recent times to another fund in their SIPP?

Contemplating saving fees and going with Vanguard FTSE Developed World and Vanguard FTSE Emerging Mkts to half the fees.
 
ddoubleep said:
Anyone moved away from the FTSE Global All Cap Index Fund (VAFTGAG) in recent times to another fund in their SIPP?
Contemplating saving fees and going with Vanguard FTSE Developed World and Vanguard FTSE Emerging Mkts to half the fees.
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Yep I use VHVG in my SIPP.
I don't see much point in paying higher fees to add stuff that is more risky / less understood by me.
 
Something I didn't think of until today.
For normal rate tax is the pension such a slam dunk vs an ISA beyond your employer contribution?


Due to tax on income, is it better to take pension until you actually get state pension, then flip to isa?

How do you guys find a balance?

I pay into both. And probably will a bit more into pension this year due to 40pc tax.
Never really thought of that before if I'm honest.
 
I think it's going to be a very personal thing. For me I have a decent company pension contribution so I also intend to fund my ISA as well as I can. I really don't like the thought of all my eggs in the pension basket with moving goalposts.

Currently put 6% + 10% from company in pension via salary sacrifice.
And currently funding around 12% of net pay into ISA but would very soon like to increase this to around 17%.

Pension is of course tax efficient on the way in but I will look to use a (hopefully) nice ISA pot to reduce my tax liability when it comes to drawing down in retirement.
 
ddoubleep said:
Anyone moved away from the FTSE Global All Cap Index Fund (VAFTGAG) in recent times to another fund in their SIPP?

Contemplating saving fees and going with Vanguard FTSE Developed World and Vanguard FTSE Emerging Mkts to half the fees.
Click to expand...
I have them split, but it’s in a standard account at the moment…
By leaving out emerging markets, your leaving out some rather large companies such as Samsung and TSMC, and if you take out the mag 7 from the DW, I think EM has out preformed DW last year..

A 90/10 split is about right to account for actual market share..
 
413x said:
Something I didn't think of until today.
For normal rate tax is the pension such a slam dunk vs an ISA beyond your employer contribution?


Due to tax on income, is it better to take pension until you actually get state pension, then flip to isa?

How do you guys find a balance?

I pay into both. And probably will a bit more into pension this year due to 40pc tax.
Never really thought of that before if I'm honest.
Click to expand...

It depends on if the company you work for gives any other form of benefits for paying into the pension… some will match your pension contributions up to a certain percentage, some will give you their NI contributions refund into your pension pot..

In terms of when to actually start taking it, it’s down to each individual… I think in certain scenarios when it comes to DB pensions it’s best to take it as soon as possible, as the amount you miss out on not having it during that period is more than the amount extra you will get by leaving it to mature… this is one thing I would certainly ask a personal finance advisor to work out when closer to the age… I know it’s certainly not worth delaying your state pension for that few extra pounds….
 
slinxy said:
I have them split, but it’s in a standard account at the moment…
By leaving out emerging markets, your leaving out some rather large companies such as Samsung and TSMC, and if you take out the mag 7 from the DW, I think EM has out preformed DW last year..

A 90/10 split is about right to account for actual market share..
Click to expand...

I think that was my reasoning also with Vanguard FTSE Developed World (VHVG) and Vanguard FTSE Emerging Mkts (VFEM) with a 90 / 10 split

I also looked at FTSE Developed World ex-U.K. Equity Index Fund (VDWXEIA) but then you lose out on the UK and emerging again so VHVG+VFEM seems a more logical approach to try and match VWRP or All Cap and be nearly half the price in fees.
 
Currently anything that is euro excl uk and us equities.

15-20 % growth per year on average over the last 5 years.

I wouldn’t have a penny in the UK, pretty much ever.

If, and that’s a big if, it carries on for 5 more years like that ill be retiring in 10 years at 54.

I put a large amount in each month currently. At 44 we’re living a bit of a poor life to maximum inputs in the good times whilst I’m earning well.

I’m fortunate/worked hard to be in a position where I earn too much to get a pay raise. But I do get a 25% bonus which goes straight into pensions.

Tbh I think everyone (generally speaking) needs to live like they are on the poverty line even if they earn well. Later life will be miserable otherwise.
 
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413x said:
Something I didn't think of until today.
For normal rate tax is the pension such a slam dunk vs an ISA beyond your employer contribution?


Due to tax on income, is it better to take pension until you actually get state pension, then flip to isa?

How do you guys find a balance?

I pay into both. And probably will a bit more into pension this year due to 40pc tax.
Never really thought of that before if I'm honest.
Click to expand...
This depends when you want to retire. If you are going to work all the way to retirement age then in the pension and my approach to pension is to have it in a global index fund. If you want to retire before pension age then you need to build an ISA bridge to pension age which again for me is in global funds. It could be a balance of the 2 or focus on the pension only depending on your aims.
 
I don't want to live on the poverty line, then die at 60 and see none of the benefits and have lead a boring middle age.

Would rather find a balance and maybe a bit of hope for some inheritance lol.
 
ddoubleep said:
I think that was my reasoning also with Vanguard FTSE Developed World (VHVG) and Vanguard FTSE Emerging Mkts (VFEM) with a 90 / 10 split

I also looked at FTSE Developed World ex-U.K. Equity Index Fund (VDWXEIA) but then you lose out on the UK and emerging again so VHVG+VFEM seems a more logical approach to try and match VWRP or All Cap and be nearly half the price in fees.
Click to expand...
Any reason you went with VFEM and not VFEG?
 
rodders said:
I don't want to live on the poverty line, then die at 60 and see none of the benefits and have lead a boring middle age.

Would rather find a balance and maybe a bit of hope for some inheritance lol.
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Haha. It’s all about balance. But I don’t think many have found it.

They’ll live til 90, be unable to work, and have very little to spend for 20+ years

But yeah I’m hoping for a chunk of inheritance too, but planning for zero.
 
rodders said:
I don't want to live on the poverty line, then die at 60 and see none of the benefits and have lead a boring middle age.

Would rather find a balance and maybe a bit of hope for some inheritance lol.
Click to expand...

I'm spending more now than I ever have.
So many things could go wrong between now and then. And odds continue to stack against you as you age.
 
If your working for a company and making monthly contributions to you pension via a salary sacrifice and have a mortgage this video is well worth watching. The basic premise is to maximise your retirement income and switch over to a interest only mortgage and invest the month your saving by not making capital repayments and instead putting that money into your pension fund to take advantage of all the tax savings you get:

 
Freddie1980 said:
If your working for a company and making monthly contributions to you pension via a salary sacrifice and have a mortgage this video is well worth watching. The basic premise is to maximise your retirement income and switch over to a interest only mortgage and invest the month your saving by not making capital repayments and instead putting that money into your pension fund to take advantage of all the tax savings you get:

Click to expand...
Mind blown.

Didn't think it would be anywhere near those gains.

Worth thinking about actually!
 
Freddie1980 said:
If your working for a company and making monthly contributions to you pension via a salary sacrifice and have a mortgage this video is well worth watching. The basic premise is to maximise your retirement income and switch over to a interest only mortgage and invest the month your saving by not making capital repayments and instead putting that money into your pension fund to take advantage of all the tax savings you get:

Click to expand...

413x said:
Mind blown.

Didn't think it would be anywhere near those gains.

Worth thinking about actually!
Click to expand...

Everyone isn't doing it because it's incredibly risky betting on an interest only mortgage for 40 years (assuming it wont give you crippling interest rates in the event of a house price crash) and also making assumptions that the Government won't change the law regarding pension withdrawal in the future.

Until this year, we had to consider the pension lifetime allowance too (and I expect it will return in the future too).
 
ci_newman said:
Everyone isn't doing it because it's incredibly risky betting on an interest only mortgage for 40 years (assuming it wont give you crippling interest rates in the event of a house price crash) and also making assumptions that the Government won't change the law regarding pension withdrawal in the future.

Until this year, we had to consider the pension lifetime allowance too (and I expect it will return in the future too).
Click to expand...

I'd never go interest only full on.
But would definitely consider maxing out the term and saving more into a pension.

Especially if I could balance it to using all my above higher rate earnings into pension
 
Just to be clear - great idea in theory but you'll very much struggle to find ANY mortgage lender allowing you to go interest only these days...

Very few, if any, will offer interest only mortgages despite you showing/telling them you have the funds to pay it off in the future.

Nice video - but lenders are very rare that offer interest only mortgages these days.
 
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