Would it surprise you to know that a ten year old pension plan is just about as obsolete as a ten year old mobile phone?
Surprised or not I promise you that is the position. So let’s look at just three reasons why that might be the case.
- Charges – old plans were designed to pay commission and even now may be paying commission to whoever set up the plan in the first place. Those charges are reducing the investment performance.
- Investment management fees – ten years ago even the best funds had annual management fees in the region of 1.5%pa. Today you would pay less than half of that on a new plan. Lower fees equal better performance.
- Fund choice – did you choose the fund or did someone else? Either way there is little chance it is now the right choice. Many people are stuck in “lifestyle” funds designed to facilitate annuity purchase when they are far more likely to use the new “flexible drawdown” facilities. That makes no sense at all. Even worse you may be stuck in an old style “with profits” plan. “No profits” would be a better description!
Just three big reasons but the list could go on and on.
Consolidating those old plans into one modern, online, low cost, user friendly, pension plan need not be at all complicated. If you like to carry out you own research visit the Hargreaves Lansdown website. If you would prefer some help and guidance just text me on 07770 575122 with “pension transfer” as the subject and I will be in touch.
Regardless of how much money is involved it is your money and a little attention will considerably improve results. Don’t put it off. Take action today.
PS. Transfers to Hargreaves Lansdown started by 16th December 2016 could qualify for a “cash back” offer of up to £500. Let me know quickly if you’re interested!
IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122
