Pension Advice
Discussion
Hi all,
Just after a bit of simple advice really.
I'm 24 and currently paying in 5% and having 4.25% matched, this will increase to 7% and 6.25% matched next year. (They will then match 1% per year up to 10% I believe) Our company auto enrols people into Universal Lifestyle, and I just moved them to a couple I thought looked good with higher risk as I'm young, but now starting to realise that may have been a bit daft.
My money is currently being put into the following funds, how do they look? Not really clued up on pensions.
UK Equity Tactical (50%)
http://www.aegonse.co.uk/funds/downloads/client-pe...
Universal Lifestyle (25%)
http://www.aegonse.co.uk/funds/downloads/client-pe...
SE Artemis Income (25%)
http://www.aegonse.co.uk/funds/downloads/client-pe...
Just after a bit of simple advice really.
I'm 24 and currently paying in 5% and having 4.25% matched, this will increase to 7% and 6.25% matched next year. (They will then match 1% per year up to 10% I believe) Our company auto enrols people into Universal Lifestyle, and I just moved them to a couple I thought looked good with higher risk as I'm young, but now starting to realise that may have been a bit daft.
My money is currently being put into the following funds, how do they look? Not really clued up on pensions.
UK Equity Tactical (50%)
http://www.aegonse.co.uk/funds/downloads/client-pe...
Universal Lifestyle (25%)
http://www.aegonse.co.uk/funds/downloads/client-pe...
SE Artemis Income (25%)
http://www.aegonse.co.uk/funds/downloads/client-pe...
Ginge R said:
Dave, why "daft"?
I suppose it's because I just looked at the funds randomly and thought they looked OK with no true understanding about funds / fund fee's. Still unsure as to whether they are any good or just complete crap but I suppose it would be useful to have a better understanding where my retirement funds are going. 
Ok.
You're 24 and you're on the cusp of being able to salt away 20%. Nice one. In terms of fine tuning, a quick look at the Artemis fund shows that the "Disclosable yearly charge/expenses" are an eyewatering 1.70%. That's a hell of a lot. Granted, it's only a proportion of your allocation and cheap isn't always best. But over the long term, those deductions (makes you wonder what all the non disclosable charges add up to, doesn't it?) are going to hurt.
A company pension is what it is. You could find cheaper elsewhere but they won't be compelled to contribute. The fund performance seems pretty much as it should be and most of these corporate mirror funds track and follow each other anyway (.. 'active' my arse), Kames seems to be the mirrored fund manager for you. But are there cheaper options available elsewhere within the offering that match your (nowt wrong in principle) punchy aspiration?
I noticed that within the lifestyle fund, you have 65% exposure to the Black Rock passive but are still paying 1%. That's pricy for an active these days, let alone a passive. Funds are like baked beans. You can buy the same item at different prices depending where you shop. Aegon will gave sold your employer the idea that it'll make corporate life simple, and it will, but you, as the end user, will be paying for that - not your boss.
You are doing things right, if you can though, try and save money for you and less for the fund manager and Aegon who are taking their slice our of you as well for doing.. well, erm, not a lot. In the first instance, ask yourself if that Artemis fund can justify its place in your portfolio and further, can you justify 65% of 25% of your portfolio going to a passive fund at a cost of 1%? If neither can wash their face (ie; if the cost benefit analysis fails, if the compounded effect of the fund charges don't justify the resultant uplift in performance) then look for other options. Does the offering include other trackers?
I can't offer advice but I hope those initial pointers are some help. Good luck, don't hesitate to get back if you want more info.
You're 24 and you're on the cusp of being able to salt away 20%. Nice one. In terms of fine tuning, a quick look at the Artemis fund shows that the "Disclosable yearly charge/expenses" are an eyewatering 1.70%. That's a hell of a lot. Granted, it's only a proportion of your allocation and cheap isn't always best. But over the long term, those deductions (makes you wonder what all the non disclosable charges add up to, doesn't it?) are going to hurt.
A company pension is what it is. You could find cheaper elsewhere but they won't be compelled to contribute. The fund performance seems pretty much as it should be and most of these corporate mirror funds track and follow each other anyway (.. 'active' my arse), Kames seems to be the mirrored fund manager for you. But are there cheaper options available elsewhere within the offering that match your (nowt wrong in principle) punchy aspiration?
I noticed that within the lifestyle fund, you have 65% exposure to the Black Rock passive but are still paying 1%. That's pricy for an active these days, let alone a passive. Funds are like baked beans. You can buy the same item at different prices depending where you shop. Aegon will gave sold your employer the idea that it'll make corporate life simple, and it will, but you, as the end user, will be paying for that - not your boss.
You are doing things right, if you can though, try and save money for you and less for the fund manager and Aegon who are taking their slice our of you as well for doing.. well, erm, not a lot. In the first instance, ask yourself if that Artemis fund can justify its place in your portfolio and further, can you justify 65% of 25% of your portfolio going to a passive fund at a cost of 1%? If neither can wash their face (ie; if the cost benefit analysis fails, if the compounded effect of the fund charges don't justify the resultant uplift in performance) then look for other options. Does the offering include other trackers?
I can't offer advice but I hope those initial pointers are some help. Good luck, don't hesitate to get back if you want more info.
About 75% UK equity across the three funds, there'll be some effective diversification as the FTSE100 is really quite international in its earnings, but I'd want a more divergent equity exposure for longer term returns personally.
That being said if you're loking for longer term punchy asset allocation, with the proviso above...
That being said if you're loking for longer term punchy asset allocation, with the proviso above...
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