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I am 57 & plan to retire at 65. I've had a personal pension with Standard Life since 2001. Payments made are £65,000 & value now £82,000, a 26% return

by Bart53 30 November 2010 |

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879

MikeGG1 posted
If you have been paying the same amount monthly then you have achieved about 6% growth p.a. which is well above inflation. If contributions have increased over the years, then you have achieved a higher rate.
However, you don't say whether the £65,000 is net of tax or gross. Depending on which and your top tax rate we would need to adjust up or down.
Mike
Posted on 30 November 2010 | Love 0 loves Report
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Bart53 posted
Thanks Mike. Payments made direct from salary 20% tax rate.
Posted on 30 November 2010 | Love 0 loves Report
879

MikeGG1 posted
Was the £65,000 the amount that you paid and then enhanced by the tax man as the insurance co received it, or did you get tax relief on it. or was the £65,000 the enhanced amount?
Mike
Posted on 30 November 2010 | Love 0 loves Report
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Bart53 posted
As the insurance company rec'd it Mike i.e. already enhanced.
Posted on 30 November 2010 | Love 0 loves Report
879

MikeGG1 posted
In that case the effective return will be even higher because you have had tax relief on 100% on the way in on top of your yield but you will only be taxed on 75% on the way back on the annuity.
The quarter cash is tax-free.
How flexible is the investment of your fund? With 8 years to go, you need to think about gradually switching the investments from equities to 75% Bonds/25% Cash by your target retirement date.
Your fund is probably not large enough to warrant Income Drawdown unless you would be fully hands-on in the process,
Mike
Posted on 30 November 2010 | Love 0 loves Report
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Bart53 posted
Sorry Mike just realised only 150 characters of my question posted, here's rest! My funds are invested in: European One 28%; UK Equity One
25%; UK
property 19%; Select Property 4%; With profits 24%. Believe they are flexible.

My IFA believes that he can improve my future returns by my
transfering to a new PP with Friends Provident that has lower charges (0.5% v
1%) plus lowering risk by altering balance of investments to unit trusts &
wider geographic spread (less European based). He tells me that I would be
better off to tune of £8,000 from this by the time I'm 65 in comparison with my
existing PP.

I don't doubt this but I am sceptical of the worth (&
cost) of moving, plus I wonder if there are better alternatives. Can you help? (am aware you can't give advise!)
Posted on 30 November 2010 | Love 0 loves Report
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Bart53 posted
Any further thoughts anyone?
Posted on 01 December 2010 | Love 0 loves Report

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