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Pension charges Klaxon flashing red.

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Just had my statement from AEGON.

This is a pension that i, rightly or wrongly, have not paid in to for over a decade. It has been ticking along ok without me taking much notice of it. Riding the printy QE bubble and maybe making a couple of grand or so a year.

The FTSE has obviously not done well lately and its now gone down a couple of K.

However this fund is now only worth £26k and i have been stung £523 for the pleasure of losing 2k this year.

I work that out as about 1.8% fee. It also looks like i'm being charged a Paid Up Charge as im not making contributions. So that will make up a bit of it i guess.

Am i best to open something up with HL forthfuckingwith? They had £296 the year before too. Its my fault for not taking charge of this. So i need to move it to some sort of low cost low maintenance tracker i guess.

Fucking thieves.

Edited by shindigger

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1 hour ago, shindigger said:

Just had my statement from AEGON.

This is a pension that i, rightly or wrongly, have not paid in to for over a decade. It has been ticking along ok without me taking much notice of it. Riding the printy QE bubble and maybe making a couple of grand or so a year.

The FTSE has obviously not done well lately and its now gone down a couple of K.

However this fund is now only worth £26k and i have been stung £523 for the pleasure of losing 2k this year.

I work that out as about 1.8% fee. It also looks like i'm being charged a Paid Up Charge as im not making contributions. So that will make up a bit of it i guess.

Am i best to open something up with HL forthfuckingwith? They had £296 the year before too. Its my fault for not taking charge of this. So i need to move it to some sort of low cost low maintenance tracker i guess.

Fucking thieves.

Just dug my AEGON one out for this year and the charges are £19 per month Advisor Charge and £20 per month Ongoing Charge so thats £37.50x12=£468/year which fluctuates as the pot goes up and down. However the pot is £95K and I do remember that the charge % dropped when it crossed the 50K threshold.

The pension is active so your charges do look a bit steep.

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1 minute ago, Chewing Grass said:

Just dug my AEGON one out for this year and the charges are £19 per month Advisor Charge and £20 per month Ongoing Charge so thats £37.50x12=£468/year which fluctuates as the pot goes up and down. However the pot is £95K and I do remember that the charge % dropped when it crossed the 50K threshold.

The pension is active so your charges do look a bit steep.

Im going to ask them the following tomorrow. (I should know this really).

What is the annual management fee?

What is the paid up plan (PUP) fee?

What is the cost of transferring out?

What is the minimum monthly contribution in order to avoid the PUP fee?

 

After that i will look at HL or AJ Bell. Charges look much lower.

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10 minutes ago, shindigger said:

Im going to ask them the following tomorrow. (I should know this really).

What is the annual management fee?

What is the paid up plan (PUP) fee?

What is the cost of transferring out?

What is the minimum monthly contribution in order to avoid the PUP fee?

 

After that i will look at HL or AJ Bell. Charges look much lower.

You do realise that you are wasting your time. Whoever you are with see it as their money. There was never any intention of paying you a pension 

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4 minutes ago, One percent said:

You do realise that you are wasting your time. Whoever you are with see it as their money. There was never any intention of paying you a pension 

Well as i see it, i'm 52, and have every intention in hoiking it out of there when i'm 55.

Its never been my intention to rely on it hence not paying in for yonks.

But if the PUP charge is humungous it might save me £1500 before i remove it in 3 years time.

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15 minutes ago, shindigger said:

Well as i see it, i'm 52, and have every intention in hoiking it out of there when i'm 55.

Its never been my intention to rely on it hence not paying in for yonks.

But if the PUP charge is humungous it might save me £1500 before i remove it in 3 years time.

its just a matter of time until they stop people doing that,i suspect the basic state pension will end up means tested

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1 minute ago, shindigger said:

Yeah. i know. That will be nestling in my acct asap.

we will see a rise in the number of people floging their houses in there twilight years and then renting ,once they have hidden or spent it or claim they forgot what they have done with it ,the state will throw money at them.

 

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12 minutes ago, stokiescum said:

we will see a rise in the number of people floging their houses in there twilight years and then renting ,once they have hidden or spent it or claim they forgot what they have done with it ,the state will throw money at them.

 

Sssssshhh. 

Don't tell everyone my retirement strategy  :ph34r:

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2 hours ago, shindigger said:

Just had my statement from AEGON.

This is a pension that i, rightly or wrongly, have not paid in to for over a decade. It has been ticking along ok without me taking much notice of it. Riding the printy QE bubble and maybe making a couple of grand or so a year.

The FTSE has obviously not done well lately and its now gone down a couple of K.

However this fund is now only worth £26k and i have been stung £523 for the pleasure of losing 2k this year.

I work that out as about 1.8% fee. It also looks like i'm being charged a Paid Up Charge as im not making contributions. So that will make up a bit of it i guess.

Am i best to open something up with HL forthfuckingwith? They had £296 the year before too. Its my fault for not taking charge of this. So i need to move it to some sort of low cost low maintenance tracker i guess.

Fucking thieves.

Thanks for the heads up as I have a vague recollection that my brother's contributions are in Aegon and he probably needs to move them ASAP then.

Yes, all of those charges look too high and I expect them to be lower in HL, unless you put money in some investment trust with high annual charges.  

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Rang them just now. 

Annual plan charge is 1%

Paid up annual charge was £27. Previous year total was £293 so bang on.

So should be around £300 again.

The nice wee lassie, could not explain the £523, and i'm waiting for an email to explain.

Happily no transfer out fees, so will be hoiking soon i think.

 

Not a good look AEGON. Not a good look.

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On 25/11/2018 at 18:21, stokiescum said:

its just a matter of time until they stop people doing that,i suspect the basic state pension will end up means tested

THIS.

I've been saying to anyone who will listen for several years now that this will happen. 

Means testing against private pension.

Then against house value.

Then ISA.

 

It'll start with a high threshold on private pension, say, about £350k or so on a sliding scale. Of course the amount and sliding scale will change over time.

This will definitely be the end for working for a living. They'll be no point at all. But, the elite want the 99.9% all at the same bottom feeding level so they'll have reached their goal !

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I use HL.   If you only hold stocks, ETFs, cash and investment trusts, the charge is capped at £200.  

Annual charges work out at 0.05% for me.

I partial transfer in my high-expense work pension (0.8%) in once per year when the HL cashback offer is available.  Make sure you get the cashback as a cheque rather than to your SIPP (the default). You can then pay that money in to your SIPP and get tax relief on it as well.

Smaller transfers get a better % as cash back and cost nothing to do.

There are trading costs but this depends on how often you buy/sell.  I tend to just buy and hold.

Low charges are essential.  Due to the wonders of compounding, a 1% annual charge over 40 years actually takes ~50% of your original fund.  

As the book title says.... "Where are the customers yachts?"

 

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1 hour ago, VeryMeanReversion said:

I use HL.   If you only hold stocks, ETFs, cash and investment trusts, the charge is capped at £200.  

Annual charges work out at 0.05% for me.

I partial transfer in my high-expense work pension (0.8%) in once per year when the HL cashback offer is available.  Make sure you get the cashback as a cheque rather than to your SIPP (the default). You can then pay that money in to your SIPP and get tax relief on it as well.

Smaller transfers get a better % as cash back and cost nothing to do.

There are trading costs but this depends on how often you buy/sell.  I tend to just buy and hold.

Low charges are essential.  Due to the wonders of compounding, a 1% annual charge over 40 years actually takes ~50% of your original fund.  

As the book title says.... "Where are the customers yachts?"

 

Well done.  Surprising how many reviews talk about the charges as a % but fail to mention the £200 cap.

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41 minutes ago, Harley said:

Well done.  Surprising how many reviews talk about the charges as a % but fail to mention the £200 cap.

Thing to note with HL and AJ is they are uncapped on mutual funds iirc. So does pay to choose funds/etf's wisely. Ill be starting a new LISA with AJ or HL (undecided yet) in April and will be sticking to ETF's and shares :D

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6 hours ago, A_P said:

Thing to note with HL and AJ is they are uncapped on mutual funds iirc. So does pay to choose funds/etf's wisely. Ill be starting a new LISA with AJ or HL (undecided yet) in April and will be sticking to ETF's and shares :D

Do people still use Mutuals?  What with ETFs and ITs and individual shares.  Arn't mutuals more for those poor people locked into a company pension scheme?

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1 minute ago, Harley said:

Do people still use Mutuals?  What with ETFs and ITs and individual shares.  Arn't mutuals more for those poor people locked into a company pension scheme?

Well I did mean funds in general rather than specifically mutuals. Apologies for lack of clarification. I do have some index funds as buy and holds. With one broker the on-going costs are zero as a flat fee platform, subsequently I prefer them slightly over ETFs. The one's I've bought are based in the UK versus Ireland (better compensation) and no spread or trading to deal with. I'm not against ETF's, I have a couple already. 

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I just got a letter from one company I do work for sometimes that I have a match pension with where they are bringing in forced increases in contributions.  You have to actively opt out to avoid steady climb to 15% of salary.  Note, this is not required by law (I contribute the minimum as I am convinced that pensions will be near worthless by the time I retire).

Hmm.  Now why would they want to make a change where you have to actively OPT OUT or pay more into the pot?

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On 25 December 2018 at 16:55, wherebee said:

Hmm.  Now why would they want to make a change where you have to actively OPT OUT or pay more into the pot?

Because they care about you and they want to ensure you have a wealthy retirement. Fucking saints they are ;)

i have no doubt increasing measures will be taken in the uk to ensure that those who save for their retirement don't end up much better off than those who haven't; an extension of how tax credits have done so for most workers these days.

As I've mentioned before, my mate with 2 kids who does 15 hours a week stacking shelves seems to have more disposable income than any of the full time workers I know. No tax paid on income, tax credits, cheap council house, bits of cash in hand work.....better off than someone working for 40k. I imagine he'll be fine when he retires - in fact I'd argue he already has...

Edited by JoeDavola

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1 hour ago, JoeDavola said:

Because they care about you and they want to ensure you have a wealthy retirement. Fucking saints they are ;)

i have no doubt increasing measures will be taken in the uk to ensure that those who save for their retirement don't end up much better off than those who haven't; an extension of how tax credits have done so for most workers these days.

As I've mentioned before, my mate with 2 kids who does 15 hours a week stacking shelves seems to have more disposable income than any of the full time workers I know. No tax paid on income, tax credits, cheap council house, bits of cash in hand work.....better off than someone working for 40k. I imagine he'll be fine when he retires - in fact I'd argue he already has...

The issue for him is that he's become utterly reliant upon a benevolent state. The reality is that the state isn't inherently benevolent. For most of history it's been far from it.

Maybe it'll stay benevolent for the rest of his days, but I'd be shitting myself in his position.

 

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3 minutes ago, SpectrumFX said:

The issue for him is that he's become utterly reliant upon a benevolent state. The reality is that the state isn't inherently benevolent. For most of history it's been far from it.

Maybe it'll stay benevolent for the rest of his days, but I'd be shitting myself in his position.

Aye for all my complaining I'd not want to be in his shoes.

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On 11/12/2018 at 09:21, VeryMeanReversion said:

I use HL.   If you only hold stocks, ETFs, cash and investment trusts, the charge is capped at £200.  

Annual charges work out at 0.05% for me.

I partial transfer in my high-expense work pension (0.8%) in once per year when the HL cashback offer is available.  Make sure you get the cashback as a cheque rather than to your SIPP (the default). You can then pay that money in to your SIPP and get tax relief on it as well.

Smaller transfers get a better % as cash back and cost nothing to do.

There are trading costs but this depends on how often you buy/sell.  I tend to just buy and hold.

Low charges are essential.  Due to the wonders of compounding, a 1% annual charge over 40 years actually takes ~50% of your original fund.  

As the book title says.... "Where are the customers yachts?"

 

I just received the offer email for this today so thanks :Beer:, im going to transfer my pension to HL and get rid of the fees I have been paying with Aviva!

Currently paying on average about 0.7% fees this should drop to around 0.2/0.3 in HL if ive worked it out correctly and some cashback to boot.

One question/something I noticed - the offer says the cashback will be credited to the loyalty account (not the sipp) and no mention of a cheque, Im going to ask for a cheque anyway but this may get knocked back.  Will report back when I have transferred.

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