Is your Pension behaving badly?
Published September 2009
A recently published report - see this article in the Investors Chronicle - identified over £18billion of pension funds languishing in funds that simply were not performing. Obviously, the performance of stock markets is largely to blame. But, as this article on underperforming pension funds shows, it seems as many as 86% of the UK funds analysed (and he analysed 778!) simply failed some basic performance tests.
Over 5 and 10 year periods some of these funds had failed to produce returns that would have rivalled the returns one could have achieved by leaving the money in cash on deposit with a bank. So why do we keep using them?
And when was the last time you reviewed the performance of your pension(s)?
No wonder SIPPs are becoming more popular
With statistics like that one cannot really be surprised that so many of us have turned to Self-Invested Personal Plans to take control ourselves and manage our investments. After all, it's our own future that is at stake and there are much better ways to guarantee our pension fund grows sufficiently to provide for a healthy retirement.
Originally the SIPP was not supposed to include residential property and this remains the case in most instances but gradually properties used for holidays abroad have found their way through the maze of rules and there are now some really interesting alternatives for those of us willing to move our poorly performing pensions into something we can manage more actively.
Fractional ownership with high yields, low entry costs and reinvestment opportunities
One of these new products can realistically take a modest pension fund of, say, £30,000 and achieve a number of aims perfectly suited for pension fund investing:
- Diversification across a range of investments in different locations due to the low per unit cost (as low as £3,950);
- Quick reinvestment of the income generated into new holdings which themselves rapidly generate more income;
- Guarantees on the capital invested through the innovative use of insurance policies underwritten at Lloyds of London;
- 70% non-recourse and non-status mortgages at fixed interest rates and for a fixed term;
- Guaranteed exit in 10 years through an irrevocable undertaking signed by all fractional holders;
- Most critically - real value growth over 10+ years to provide for a healthy income in retirement.
In short, what better way to benefit from all of the above than by moving those sleepy finances from underperforming pensions into a SIPP with the guarantees and yields to get them working again?
We have a number of factsheets on this opportunity as well as the necessary paperwork to get the process underway (without you having to commit to anything until you're ready and understand the benefits fully as they would apply to you). So email us or call on the number at the top of this page and we'll get everything over to you to get the ball rolling.
Don't wait till you retire before finding out how little your pension is worth - review it now and talk to us if you are feeling impoverished
Print
Recommend this page