Soldato
Moved my old pension into a fund that’s largely passively managed.
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
- Start date
My workplace pension is with The People’s Pension.
I contribute 14% and my employer contributes the minimum 3% (but free money is free money).
I’m on the riskiest fund TPP offer (100% equities) and I’ve just checked the performance data - it’s shocking. Massively underperforming vs the benchmark fund for 6-month, 1-year, 3-year and 5-year.
Compared to my S&S ISA (Vanguard All-World Developed Ex. UK) it’s pathetic, especially given TPP’s relatively high fees.
It would be interesting to see whether the 3% matched contributions actually offset the poor performance of the fund. I’ll have to try and run some numbers.
I hope the government brings in the “Pot for Life” so I can take a bit more control.
I contribute 14% and my employer contributes the minimum 3% (but free money is free money).
I’m on the riskiest fund TPP offer (100% equities) and I’ve just checked the performance data - it’s shocking. Massively underperforming vs the benchmark fund for 6-month, 1-year, 3-year and 5-year.
Compared to my S&S ISA (Vanguard All-World Developed Ex. UK) it’s pathetic, especially given TPP’s relatively high fees.
It would be interesting to see whether the 3% matched contributions actually offset the poor performance of the fund. I’ll have to try and run some numbers.
I hope the government brings in the “Pot for Life” so I can take a bit more control.
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Soldato
mid 40s... this is why I'm not opting out of my default fund and nor are the traders at my work... yes it's low in equities but it makes a killing from the private money market and properties.
I'm paying 14% gross to it, work is paying 10% and any NI they get back (another 4%) from the government as I'm salary sacrifice.
I'm going to open a SIPP and start to pay any extra into that and once I paid of my mortage, the majority of that cash will go into the SIPP or an stocks and shares ISA.
I also have a city council pension pot, which I hope to re-use as I do plan to go back to the public selector again before retiring and an university pension pot.
Man of Honour
Ha! Well who knows what will happen in 20ish years.
If it keeps going at the rate it is then I *should* be ok. But who knows.
use Trustnet or Morningstart to rate the funds/rank performance - All the info is there already....
Performance is only a small part of why one fund is better than another. Past performance is not a guide to the future.
Sounds fine - "lifestyling" is generally what happens when people "fire and forget" with the pension funds.... It reduces the "risk" by moving from equities to bonds/cash nearer retirement.Just logged into my current workplace pension plan and got confused. A lot. But basically it says the risk profile "automatically changes its investment mix over time from higher-risk to lower-risk investments and therefore the risk rating of each fund will vary over time from 6 (High) at the beginning of the investment cycle to 3 (Medium-Low) at the maturity date of that fund." I think I'm currently in the high risk one. It claims the performance of my plan did 11.5% Fund and 11.5% Benchmark over the last 12 months. However, my pot has grown 15% over the last 12 months.
Erm...is that good lads?
Whether that's a good thing or not is up to you the individual to decide.
I'm sure iv posted in this thread or similar..don't really know about performance of pensions. I just login to my current legal and general and see the pot going up? No idea about projections, if I'm on target etc.
I had 2 previous workplace pensions which I combined in to this one now with legal and general.
And I hope for the best ? Anyone give me any pointers ?
Do I have enough In the pot at the moment for my age ? Probabably not? Have I lost some performance during what ever financial crisis we go through. Who knows
I had 2 previous workplace pensions which I combined in to this one now with legal and general.
And I hope for the best ? Anyone give me any pointers ?
Do I have enough In the pot at the moment for my age ? Probabably not? Have I lost some performance during what ever financial crisis we go through. Who knows
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Associate
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- 8 Jun 2007
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Pretty poor performance tbh by Aegon.Granted i have only been with them 4 years but in total me and the company have put in 12k but the transfer value of the pension is only 10K 
Luckily it's not my main pension and will be transfered to that once i'm retired.
Luckily it's not my main pension and will be transfered to that once i'm retired.
Associate
Don't think anyone's said it yet, but automatic lifestyling may not be appropriate for huge swathes of people now
I dunno what the stats are but for folk with a Defined Contribution scheme, what's the likelihood that you'll cash it all in for an annuity at your retirement date?
I would imagine for most people, drawdawn is probably a better option, esp if annuity rates are going to follow interest rates down, therefore it makes sense to stay in higher risk funds longer
Maybe setting your retirement date to 75 in terms of lifestyling would be appropriate
I dunno what the stats are but for folk with a Defined Contribution scheme, what's the likelihood that you'll cash it all in for an annuity at your retirement date?
I would imagine for most people, drawdawn is probably a better option, esp if annuity rates are going to follow interest rates down, therefore it makes sense to stay in higher risk funds longer
Maybe setting your retirement date to 75 in terms of lifestyling would be appropriate
There is very rough rule of thumb that says you can drawdown 4% per annum for 30years.
An annuity would be the other way to go, You might get £6-£6.5k a year per £100k, but if you die soon after retirement, not a great deal as the money is gone. It gets much more complex than that when you start factoring in health, age, index linking etc.
Pretty poor performance tbh by Aegon.Granted i have only been with them 4 years but in total me and the company have put in 12k but the transfer value of the pension is only 10K
Luckily it's not my main pension and will be transfered to that once i'm retired.
Those are the 2 x workplace pensions I had and combined them in to legal and general who my currently employer uses
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Soldato
Try
this will tell you roughly how much you need and how much you currently have.
most sites recon you need about 2/3s of your current income now assuming that you are living within your means and that your happy with your life style..
theres plenty of sites that will give average per age, most people don’t have a decent pot until they are in their 50s once kids have are no longer dependent and the mortgage have been paid.
if you want to work out your wealth then it’s your (age x gross) / 10… if you have four times as much as the sum in assets, savings and pension then your super wealth…
This is what I have done for one of my DC pots to ensure that it doesn't start to get shifted from Equities to Bonds when I hit 55. The 'pre-lifestyling' default asset mix for that pot (a Fidelity 'Futurewise' fund) isn't massively different to a globally diversified equities tracker, and the fees are very similar too.
Associate
If that’s a reference to the state pension, I think it’s unsustainable at the current level, esp with the triple lock. People like my elderly mother are bleeding the system, but that’s what happens when that cohort voteI'm on a DB pension so I basically just need to hope that enough people are alive to pay it by the time I retire
I have been recently taking a closer look at my work pension. Its with Aviva and the performance hasn't been great over the last 10 years. Fees are also quite high compared to the SIPPs i have looked at. I am in the process of getting it moved into a SIPP at the moment to have more control over it and at lower fees. I think its certainly worth the effort looking into it as over 20+ years the final balance could look quite different.
I should probably look in to this a bit more. I moved to the UK at 22 and my first couple of years was just agency work so probably no pension. During covid I gathered up a few scraps and put them in to Pensionbee, this is how its looking:
No idea if this is good or not. I also have about 6-7 years of pension from my current employer which is currently set at 5%, I've asked payroll for the deets so I can crank it up.
Any other suggestions welcome, my zimmer frame won't pay for itself.
No idea if this is good or not. I also have about 6-7 years of pension from my current employer which is currently set at 5%, I've asked payroll for the deets so I can crank it up.
Any other suggestions welcome, my zimmer frame won't pay for itself.
Soldato
I transfer as much as I can from my workplace pension once a year to my Vanguard SIPP where it’s invested into the same index funds as my S&S ISA and Lifetime ISA. Some workplace pensions aren’t too bad on fees but some are awful so ymmv.
I didn't know this could be done.