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

[FerretBoy]

My current workplace pension is with Aviva and my employers pay in 15%. If I transfer away I think I lose that, so I'll keep this going if that's to case.

Ask them if they allow partial transfers out, that's what I do from time to time with my work place pension. Make sure you know the terms etc.

But only if you save on fees or you want the freedom of choosing how it's invested that comes with sipps.

 

[Nathan]

Just looking into mine.

Retire at 55, 120k lump sum, 15k a year.
Retire at 60, 180k lump sum and 25k a year.
In today’s money. I guess I’m working until I’m 60.

Together with other property investments, should mean I get to live the quality of life I want and travel.

 

[bainbridge]

@FerretBoy @EvilRob

Thanks, I'll look into that.

 

[dlockers]

@FerretBoy @EvilRob

Thanks, I'll look into that.

What's driving the need to mvoe it?

 

[413x]

I’m just flagging this up for others. If you’re moving your pension from Vanguard then you’re golden. It’s not possible to transfer your pension from other providers. Bit of a spanner in the works for me personally discovering this

Yeah I thought I'd jump on it in case the offer is withdrawn.
Its weird tbh this is only open to vanguard.

I still don't entirely understand the invest engine model. And I wouldn't hold over 85k in it just in case.

 

[413x]

I'm in the process of doing a long overdue review of my pension pots. The first review, to be honest.

I've tracked down a pot from years ago and can now access it online after sending in ID.

I have a People's pension, and had a chat with a lady from there who was helpful.

My current workplace pension is with Aviva and my employers pay in 15%. If I transfer away I think I lose that, so I'll keep this going if that's to case.

I've nearly worked out what the charges are for each pension, and once I've worked out how they've been performing I'll decide if it's worth transferring either of the first two pots.

It's a steep learning curve but I'm beginning to understand it.

Better late than never!

I had peoples pension. It was really poor. It's one of the ones I moved into my sipp.

This Process took a few weeks for me as I moved them 1 by 1 just to track. Had all Sorts of Providers. Aviva, people's, Scottish widows, USS, abf

 

[{SAS}TB]

I have been a bit of an ostrich with regards to my pension(s) but had cause to review a few months ago

The upshot is I have combined two old pensions, topped up with some inheritance money (via my wife and father in law) and have a financial adviser looking into possible transfer of another pension (in three parts)

I also have a current workplace pension so have only recently started to actually get all down on (digital) paper (a spreadsheet) and am tracking performance

It's a bit of a rabbit hole!

Also, with it being at the forefront of "stuff to do" at the moment I read this when a link dropped into my inbox, in case anyone finds it interesting

Average pension pot by age

How does your pension pot compare to your peers? We delve into the data and reveal the average pension pot for different age groups

moneyweek.com

 

[bainbridge]

A question that I'm struggling to answer. Please be kind as this is all new to me

With my current workplace pension provider (Aviva), my employer pays 15% of my salary in, even if I don't pay anything.

Over the past year or so I've been paying in about £180 per month myself, and the company was paying in 15.29%. I reduced my contribution to £150, and the employer contribution dropped to 15.27%.

So, I surmised that my employer does continue to increase their contribution over 15%, but not by much.

I've considered stopping my own contributions into this pension (possibly changing to holdings to a different fund that they offer a choice of, and possibly doing the odd transfer out if I can) and using the money instead to contribute to my own SIPP.

I understand that because I would have paid tax on my take-home earnings, HMRC will pay me tax relief if I pay into a sipp, but what about NI contributions? I would have paid NI on my take home pay, whereas if I paid it directly into my workplace pension I would not have been charged NI contributions.

So, by my man maths, if I can get a good choice of fund for my existing workplace pension, it would be better for me to pay salary deductions into my workplace pension, get a small top up in employer contributions AND not get charged NI deductions.

Is this right or am I missing something?

 

[dlockers]

Average pension pot by age

How does your pension pot compare to your peers? We delve into the data and reveal the average pension pot for different age groups

moneyweek.com

These averages are so useless -- there has to be a better way of bench marking yourself. For example I 100000000% did not have £2.7k at 16-24. And then from what point forwards it makes no sense for the opposite reason.

I guess Joe Bloggs with 1.5m and Jane Doe with a fiver = 750k average.

 

[200sols]

Those averages are crazy low. So many people are in for miserable retirements.

 

[Mercenary Keyboard Warrior]

A question that I'm struggling to answer. Please be kind as this is all new to me

With my current workplace pension provider (Aviva), my employer pays 15% of my salary in, even if I don't pay anything.

Over the past year or so I've been paying in about £180 per month myself, and the company was paying in 15.29%. I reduced my contribution to £150, and the employer contribution dropped to 15.27%.

So, I surmised that my employer does continue to increase their contribution over 15%, but not by much.

I've considered stopping my own contributions into this pension (possibly changing to holdings to a different fund that they offer a choice of, and possibly doing the odd transfer out if I can) and using the money instead to contribute to my own SIPP.

I understand that because I would have paid tax on my take-home earnings, HMRC will pay me tax relief if I pay into a sipp, but what about NI contributions? I would have paid NI on my take home pay, whereas if I paid it directly into my workplace pension I would not have been charged NI contributions.

So, by my man maths, if I can get a good choice of fund for my existing workplace pension, it would be better for me to pay salary deductions into my workplace pension, get a small top up in employer contributions AND not get charged NI deductions.

Is this right or am I missing something?

It sounds like your employer is passing on their NI reduction so as your contribution goes up or down then a tiny fraction will be added on top by them.

One of the specific benefits of a workplace pension is that it can be* deducted pre tax, so its as if you never earned it, as such you save the tax and NI and do not have to worry about claiming it back.

*Almost all are now, but its not 100% so you need to check if you ever move employer.

Only you can say if its better to play into a workplace one, but AVIVA have a lot of options to invest into, generally the only time its not worth paying into a workplace is if your not gaining anything else from the employer (your not really just a tiny amount), and/or the investment options available are total pants.
Oh and fees, but generally now there isn't that much to be gained in regards fees, years ago some fees were eyewatering.

 

[{SAS}TB]

These averages are so useless -- there has to be a better way of bench marking yourself. For example I 100000000% did not have £2.7k at 16-24. And then from what point forwards it makes no sense for the opposite reason.

I guess Joe Bloggs with 1.5m and Jane Doe with a fiver = 750k average.

Those averages are crazy low. So many people are in for miserable retirements.

I agree - a breakdown by "band" of savings per age group would be much more useful and informative

The "real" average can't be that low, surely

 

[dlockers]

I agree - a breakdown by "band" of savings per age group would be much more useful and informative

The "real" average can't be that low, surely

I suppose it gets complicated quite quickly - where you live, assets under your control, location.

I am happy with my pot ATM; but going to definitely write off next tax year as a pension-builder round. Not least because I would lose eligibility for childcare hours (worth a fortune now they kick in at 9 months!) but because age is still on my side and it is worth it.

 

[throwaway4372]

pretty risky that people see themselves above average and think they're ok
even those who attempt to find better data will struggle to find it, we do a shocking job of setting expectation

 

[Bluecube]

The "real" average can't be that low, surely

There are so many people out there in all age groups that have no pension or a tiny one. So yes, the averages can be that low

 

[Zatoichi.uK]

Think it was Damien talks money that pointed it out but there's a section of Gen X's that just missed out on final salary pensions but were also too early for auto enrolment. There's early few years make a big difference in the long run.

I didn't start my pension until 30 so also feel behind. Doing my best to stock an ISA alongside the pension. Just gotta make the best of it!

 

[dlockers]

Think it was Damien talks money that pointed it out but there's a section of Gen X's that just missed out on final salary pensions but we're also too early for auto enrolment. There's early few years make a big difference in the long run.

I didn't start my pension until 30 so also feel behind. Doing my best to stock an ISA alongside the pension. Just gotta make the best of it!

it does feel the system is somewhat backwards. At 30 you are in your peak spending phase (house, kids, lifestyle) but you only get your max contributions in your 40s, 50s (at my employer at least).

Feels like larger contributions reducing as you get older makes the most sense?

 

[fez]

Those averages are crazy low. So many people are in for miserable retirements.

Are they though? Pensioners vote in their own interests and politics is driven by what will get votes rather than whats best for the country.

That being said, there is only so much the government can do. In the next 30 years we are going to see an absolute flood of people who don't own their own house and have **** all pension hitting retirement age.

If those average pension pots are even broadly correct then people are screwed even if they owned their own homes. £190k isn't a large enough pension pot to live off even if you own your house outright. Society is going to have to adapt massively in the next 30 years or the whole thing is going to collapse spectacularly.

 

[Zatoichi.uK]

There are people I really worry about. A brother in law with a wife who doesn't work and they still rent. He's mid 50s. A couple with 3 kids who also rent and they're fast approaching 50. I feel behind but some people are just sleepwalking into disaster.

 

[EvilRob]

it does feel the system is somewhat backwards. At 30 you are in your peak spending phase (house, kids, lifestyle) but you only get your max contributions in your 40s, 50s (at my employer at least).

Feels like larger contributions reducing as you get older makes the most sense?

Unfortunately retirement itself is similar. You're at your peak spending at the beginning while you are still young enough to enjoy it, but (assuming drawdown) this is pretty detrimental to the long term value of your pot and you're at high risk from dips shortly after retirement.