Personal Pensions - The Truth Of Why You Need To Act Now
Pension charging structures have changed dramatically over recent years. Due to the introduction of Stakeholder pensions the charges applied to new Stakeholder benchmarked plans are far lower than in the past. Many individuals now find themselves with outdated, overpriced pension contracts. It may be possible to transfer to a lower cost plan.
Investment returns on many pension plans have
fallen well short of what has been achieved by other providers.
With Profits personal pensions have generally performed even worse than poor performing unit linked ones with little or no bonuses being added in recent years. Many of these funds have already ‘spent’ all or most of their reserves subsidising bonus rates declared to investors over the last few years when falling equity markets have resulted in negative returns to the fund itself.
The Financial Services Authority makes recommendations to review With Profit Investments and Pensions.