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Thanks for Reddit link. My gosh ppl are very annoyed and I can understand why. It seems for many it’s personal financial choice of wanting 100% equity.
For me it’s personal religious choice. Still a bit weary of sukuk
I’m also having 2nd thoughts about transferring in my £290k from SW to NEST and now actively looking at other providers.
Will come down to fees and it doesn’t help there isn’t just one fee.
Far be it for me to advise anyone on what to do with their pension but if you want to have control of your money open a sipp, no ridiculous charges for a start and not restricted on the funds you can choose to invest your hard earned into.
Far be it for me to advise anyone on what to do with their pension but if you want to have control of your money open a sipp, no ridiculous charges for a start and not restricted on the funds you can choose to invest your hard earned into.
Just wondering if there is any benefit in keeping the SW account open with a nil balance. The only benefit i can see is being able to access old pension docs/illustrations.
Can you save old documents, etc onto your computer for future reference before you transfer?
I saw online somewhere recently the Nest Sharia fund has ditched it's 100% equity holding in favour of a 70/30 split between equities and Sukuk.
A lot of Sharia investors don't seem too keen, how do you feel about it?
Thanks, I suppose I could save the documents... in fact I'm turning into my father (who has folders full of old records) and have started to collate all the paper pension illustrations (RMDCP & deferred Section C) I've received in the post for last 7-8 years anyway but I just feel that if it's not going to cost me anything that's one additional repository saved.
With regards Sukuk, I can't find anything about NEST switching to that but I do know (especially in Middle East) there appears to be an increasing push towards it.
Don't know enough about it but as long as it's not Gov Debt (such as Bonds/Gilts) but rather an investment in some underlying asset/infrastructure then I'm cool with that.
I would suggest that with gilts hitting the 5% mark there are worse places to stash a pension, I'll take a guaranteed 5%,annual growth for 30 years with a guaranteed final sum before a prospective 7% and no guaranteed future value
Far be it for me to advise anyone on what to do with their pension but if you want to have control of your money open a sipp, no ridiculous charges for a start and not restricted on the funds you can choose to invest your hard earned into.
Of course SIPPs have charges, a platform fee of some sort and then there’ll also be some sort of AMC.
Also the 8% saving via PSE
I would suggest that with gilts hitting the 5% mark there are worse places to stash a pension, I'll take a guaranteed 5%,annual growth for 30 years with a guaranteed final sum before a prospective 7% and no guaranteed future value
Performance so far over last 14 years have far exceeded 7% PA.
I expect dips but I’ve got at least 15-20 years before I retire
Far be it for me to advise anyone on what to do with their pension but if you want to have control of your money open a sipp, no ridiculous charges for a start and not restricted on the funds you can choose to invest your hard earned into.
Of course SIPPs have charges, a platform fee of some sort and then there’ll also be some sort of AMC.
Also the 8% saving via PSE
I would suggest that with gilts hitting the 5% mark there are worse places to stash a pension, I'll take a guaranteed 5%,annual growth for 30 years with a guaranteed final sum before a prospective 7% and no guaranteed future value
Performance so far over last 14 years have far exceeded 7% PA.
I expect dips but I’ve got at least 15-20 years before I retire
A SIPP does not incur AMC it does incur a platform charge, my annual management charge is capped at £120 pa depending on my investments. Obviously if you invest in funds inside your SIPP each individual fund will have its own AMC. For comparison my old platform pension attracted a 1% AMC from the provider as well as an AMC from each fund manager, and a set annual fee for the platform. Depending on the size of your pension this can be a considerable amount of money especially compounded over years.
It is of course still possible in a SIPP to invest in the exact same funds you do in a Platform pension, the reason I mention gilts is aimed more towards my situation having retired at 55 I am able to invest in products that I know will mature on an annual basis to give me a guaranteed and exact income each year.
Having witnessed the anguish experienced friends and colleagues who retired months prior to COVID striking and having their pension pots reduced by half and still having to take money out, it is a situation I would wish to avoid. Yes markets have fully recovered and come back stronger, but the % of their pots they had to take can never be returned. Obviously the longer you have until retirement then the longer you have to take advantage and ride out peeks and troughs, once in retirement that is not a luxury you have, and I sincerely hope I am going to get 30 years in retirement
A SIPP does not incur AMC it does incur a platform charge, my annual management charge is capped at £120 pa depending on my investments. Obviously if you invest in funds inside your SIPP each individual fund will have its own AMC. For comparison my old platform pension attracted a 1% AMC from the provider as well as an AMC from each fund manager, and a set annual fee for the platform. Depending on the size of your pension this can be a considerable amount of money especially compounded over years.
It is of course still possible in a SIPP to invest in the exact same funds you do in a Platform pension, the reason I mention gilts is aimed more towards my situation having retired at 55 I am able to invest in products that I know will mature on an annual basis to give me a guaranteed and exact income each year.
Having witnessed the anguish experienced friends and colleagues who retired months prior to COVID striking and having their pension pots reduced by half and still having to take money out, it is a situation I would wish to avoid. Yes markets have fully recovered and come back stronger, but the % of their pots they had to take can never be returned. Obviously the longer you have until retirement then the longer you have to take advantage and ride out peeks and troughs, once in retirement that is not a luxury you have, and I sincerely hope I am going to get 30 years in retirement
Ok, a SIPP doesn't have an AMC in and of itself but what I meant was the fund you invest in, the provider would have an AMC. The platform provider will have their own fee too. Some as a fixed monthly fee, others Iike HL, as a percentage of fund value.
I'm considering of buying into an ETF that has performed as well as the fund but lower charges.
Don't know if anybody knew this but I had to contact NEST to find out why my funds hadn't been invested.
When you first open an account with NEST, they have a non-investment period (I suppose it's like a cooling off period) where for the first 6 weeks and 3 days since opening, they don't invest your money.
So it seems there'll be a fair bit accrued before they make the first investment
I’m also having 2nd thoughts about transferring in my £290k from SW to NEST and now actively looking at other providers.
Will come down to fees and it doesn’t help there isn’t just one fee.
Hi
I previously paid into the rmdcp and later opted out.
A few weeks ago I've been auto enrolled to nest and money approx £23 a week going out my wages.
Is this a similar scheme to the dcp?
Does the company contribute?
Can I choose funds?
Thanks
Hi
I previously paid into the rmdcp and later opted out.
A few weeks ago I've been auto enrolled to nest and money approx £23 a week going out my wages.
Is this a similar scheme to the dcp? Yes with some marginal differences on what RM class as pensionable pay and also the Death In Service Lump Sum and of course the fees with Nest - which are easier to work with (1.8% on contributions plus a 0.3% Annual Management Charge on the value of the pot in March/April
Does the company contribute? Yes, a healthy 13.6% compared to max 10% in RMDCP
Can I choose funds? Yes, see link https://www.nestpensions.org.uk/schemew ... oices.html
Thanks
