Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
- Start date
Sometimes there are different categories of the same fund (A shares, B Shares, Z shares etc) - This is for retail clients, institutional etc.
You want the retail funds i'm guessing...??
Also dates don't always tie up to be exactly the same from the provider to trustnet etc - so you end up with differing numbers
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Yeah I think it was just the dates not matching. The fund ID matches so they're definitely the correct ones.
Thanks all, makes it easy to see the FTSE Global All Cap Fund is probably what I want to switch to from my Target Retirement 2055.
Time to see how easy it is to switch.
Lucky you. My provider doesn't give me the option of Vanguard funds, so I can't pick the funds I really want. I can get close with one of them, but the 2 best funds available are a StateStreet global fund, and a seemingly unknown factor fund, although that has done particularly well for me in the last year or so.
Im with Vanguard at least for one pension. My current workplace is with Scottish Widow.
Soldato
State Street are big, 5th in world... they are half the size of vanguard, but vanguard is 2nd of the biggest.
List of asset management firms - Wikipedia
Size is irrelevant really, fees are what matter.State Street are big, 5th in world... they are half the size of vanguard, but vanguard is 2nd of the biggest.
List of asset management firms - Wikipedia
en.wikipedia.org
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Soldato
scale of economy, the large the more they can keep the costs down. Large enough to move markets and size of asset under management should reflect on how secure the assest under management are.
cheaper is not always better....
Market movers. All you want or need is a cheap index tracker.
State Street are big, 5th in world... they are half the size of vanguard, but vanguard is 2nd of the biggest.
List of asset management firms - Wikipedia
For sure. I am aware. And to be honest, it is looking like one of the best options. I am nervous just now as I am 100% invested in the one fund, and it's not the State Street one yet. I think it's new to the platform, or I missed it when I actually decided to look last year. But my companies platform is absolutley terrible. It gives almost zero information. I can see my current fund size, but I can't get any historical data. I have a selection of funds, but no information on fees and charges. It's a ******* mess to be honest, for what will be my biggest lifetime investment.
Soldato
those two vids popped up on my youtube last night...
even thou the life time pension limit has been removed, the amount that you can take 25% tax free from your pension still remains.
www.youtube.com
this video chats about how to be most tax efficient
www.youtube.com
My personal thoughts on it, is that the more a person can place into their pension the more tax efficient they will be.. but IF they do get rid of NI; taxes will go up and I do suspect the basic tax percentage will go up before I retire even if they don't get rid of NI. It's better to pay the taxes now at 20% and put the cash into private investment than have to pay them at 22%, 25% or whatever percentage that they will raise to.
I seems like getting the money out tax efficently is more complexed than getting the money in.
even thou the life time pension limit has been removed, the amount that you can take 25% tax free from your pension still remains.
Pension Tax-Free Cash - New Rules You Shouldn’t Miss
The Lifetime Allowance is no more, but its legacy lives on in some new rules about how much tax-free cash you can take when you crystallise your pensions at ...
www.youtube.com
this video chats about how to be most tax efficient
The 3 Big Tax Mistakes EVERY Retiree Makes (Real world examples)
Financial PlanningI am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about our ...
www.youtube.com
My personal thoughts on it, is that the more a person can place into their pension the more tax efficient they will be.. but IF they do get rid of NI; taxes will go up and I do suspect the basic tax percentage will go up before I retire even if they don't get rid of NI. It's better to pay the taxes now at 20% and put the cash into private investment than have to pay them at 22%, 25% or whatever percentage that they will raise to.
I seems like getting the money out tax efficently is more complexed than getting the money in.
Been thinking about tax lately and my conclusion is there is no point getting hung up on it. Right now I earn c.30% more than I get paid because of tax, and if that's the same in retirement so be it. I think it's ultimately better to put more money in now (pre tax) so that more growth occurs in your pot, rather than limiting the growth to pay less tax in future.
Soldato
You have no control and no more insight into potential tax changes that mystic meg.
So as Dan says, focus on what you can control, your contributions.
It wasnt that long ago the government was consulting on completely flipping the tax on pensions on its head and making contributions taxable, but pension taken later as tax free.
There is a massive benefit for the government here in that it increases the tax take right now, quite noticeably.
The step after that, reintroduce some tax on pensions
IMO. It wouldn't be the full amount I would say, but some small amount.
So as Dan says, focus on what you can control, your contributions.
It wasnt that long ago the government was consulting on completely flipping the tax on pensions on its head and making contributions taxable, but pension taken later as tax free.
There is a massive benefit for the government here in that it increases the tax take right now, quite noticeably.
The step after that, reintroduce some tax on pensions
IMO. It wouldn't be the full amount I would say, but some small amount.
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Agree with that, in that I think James Shack or Chris Bourne may have done a video that shows the different to income in retirement between saving into an ISA and paying the tax up front or saving into a pension and paying the tax at the end. The conclusion was that it was better to pay into a pension for the tax relief as getting £100 for ever £80 you put in (plus the higher rate if salary sacrifice or the tax refund if going via SIPP) makes it unbeatable. Think you need to have some in as ISA as well TBH but the majority should be in a pension, rules might change but it's easier to minimise tax via SIPP/ISA/GIA come pension age IMO.
Would be a massive vote loser and I assume they'd have to put some sort of protections in place for existing pensions.
Yeah I guess so. It would be one of those where all parties would have to agree I guess. Probably also impact many of the party themselves.
Hope the age doesn't go up for it.
Looking forward to equity release and that tax free lump sum.. Although by that time I'll be old and probably not be able to use it.
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I think they could at some point remove the 40% tax break, it costs a lot an generally only benefits the more well off. Also SIPPs and how they are inherited will change at some point I think, its basically just a massive inheritance gift for the rich.
Soldato
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- 13 Sep 2005
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I should know this already really but how does the tax free lump sum work? Don't you simply hit the personal allowance limit as soon as its in a "normal" account and therefore start paying tax on it?
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Having a difficult year this year thinking about all this stuff and finding a spend/save ratio. Family loss sparked the thoughts.
Im currently bouncing around how much I should be saving vs spending. I naturally like saving. But it's also hitting home about spending "life is short".
I'm absolutely not doing the FIRE thing. As it's waaaay to high risk, and tbh I don't earn enough anyway.
But seeing/hearing about more and more people passing away younger I do question more "am I saving too much".
Most people would say (on OCUK especially) I probably need to over save/over contribute to pension vs what I am.
But it's a bit tricky when you don't heavy kids.
Inflation is rife too. The least couple of years has shown how much today's pension pot can be devalued so quickly.
I'll probably keep contributing like I am.
I've even chatted to older more senior people at work and many don't even think about! My boss said "I don't really know, Ive never really looked at it" which surprised me!
Im currently bouncing around how much I should be saving vs spending. I naturally like saving. But it's also hitting home about spending "life is short".
I'm absolutely not doing the FIRE thing. As it's waaaay to high risk, and tbh I don't earn enough anyway.
But seeing/hearing about more and more people passing away younger I do question more "am I saving too much".
Most people would say (on OCUK especially) I probably need to over save/over contribute to pension vs what I am.
But it's a bit tricky when you don't heavy kids.
Inflation is rife too. The least couple of years has shown how much today's pension pot can be devalued so quickly.
I'll probably keep contributing like I am.
I've even chatted to older more senior people at work and many don't even think about! My boss said "I don't really know, Ive never really looked at it" which surprised me!