Mrs

[The Dogmother]

I seem to be getting nowhere

 

I've had the same personal pension for some time now and it seems to perform reasonably well considering the circumstances; I have two niggles though....

 

The first is more of an administrative issue; I have noticed that the statement they send me doesn't show the tax which they claim back on my behalf and then add to my pension fund. I would have thought it ought to show this so I phoned up my pension company and asked them to send me out a statement showing the tax which they have clawed back. The statements I received this morning only show my gross contributions (as with the first statement) not the amount of tax added to my payments.

 

Secondly, I see that the monthly admin/management charge is nearly 50% of my contribution which I find excessive. Is this normal for all personal pension plans? I am happy to look around at other plans but the financial advisor I used before no longer works with pensions and I'm not au fait enough to be happy looking at them without advice.

 

Can anyone advise or pass on experience?

[Duncan08]

No help sorry, we need to review ours, and don't have a clue.

 

We are going to get a man (or woman of course!) in to go through them. They are such a minefield and have had various facelifts, its worth finding an expert to go through them.

[Bramble]

I'm no help either, I'm afraid, I'm just as confused as you, but on your second point, I gather it is much cheaper (from an admin charge point of view) to make one annual contribution to a pension plan rather than 12 monthly ones so that might be something that's worth looking in to.

Good luck, I need to do SOMETHING about a pension but can't somehow bring myself to face it!

[Space Chick]

The gross contribution should be be the contribution, INCLUDING the tax relief.... What you should be paying is the net contribution.

 

As for admin charges, I guess that you have held you pension for some time, there is usually an annual management charge too. Most more modern pensions do not have a set admin charge only a management charge.

 

I have been out of the pensions game for 5 years now, but from what you have said, you don't seem to be getting a good deal, and if you say the gross contribution is what you are paying then that is concerning.

 

When I left financial services, most new pensions were called "Stakeholder pensions" not "Personal Pensions" and the stakeholder pensions have to meet stringent guidelines similar to ISAs.

 

I would strongly recommend seeing a financial adviser, preferably an independent one.

 

Hope this helps DM

[The Dogmother]

Thanks Debs.

 

I don't think I was very clear... what my statements show is the gross contribution after they've claimed the tax, nowhere do they show my (nett) contribution, nor the amount of tax they are claiming back on my behalf. I've had a pension since I was about 22 and changed to this one about 5 years or so ago.

 

Does anyone think it's best to speak to several advisors locally and see what they come up with?

[abwsco]

Good god at 50% fees We swapped IFA's a few years ago and the difference to our pension pots are phenonomal(sp?) Think our fees might now be only 5% (memory not what it was) and he regularly reviews them and moves the funds around. We'll still end up with sod all at retirement age though I bet and I do wonder if we should really bother paying into one...............

[chickencam]

We don't understand them either, OH was thinking of stopping his contributions after revceiving his recent statement which showed that over about 15 years it is only worth what he has paid onto it. He had a review and their new proposals weren't much better. We also thought that his contributions would go a long way to paying ED's uni living expenses. Maybe we are being charged a massive fee

[The Dogmother]

Right, I did a spot of research in a quiet patch earlier and have arranged to see two companies who can help with pensions; one is a form of accountants and t'other is a well regarded local firm of financial advisors.

 

I'll let you know how I get on.

[lillybettybabs]

Good luck, I have two pensions and have no clue.

[Duncan08]

We have an advisor coming out on Tuesday 26th to have a look at ours!

I am sure it will still be as clear as mud!

[The Dogmother]

Not just me then! For the daughter of a retired FD, I have no idea whatsoever about pensions and need to have it explained to me and then I write it down as it's bound to be forgotten before I next need to know it