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I posted a while back asking about annual management charges but have been pretty happy to keep my existing arrangements ticking over since then. Not sure if there’s any big benefit by consolidating/moving to be had at this time other than making it easier to track. 
 

I now have:

3 private defined contribution pensions (currently £37k + £7k + £5k)

1  current public sector defined benefit pension accruing £1k pa, sitting at approx. £4K so far (4 years in) and to be adjusted for inflation each year.

1 AVC pot (defined contribution) of approx. £4K pa building alongside my public sector pension. 

Age 38 and hoping the public sector pension continues for the foreseeable. Certainly no plans to move. 

My 3x private, plus 1x AVC are my plans to bridge the gap from 68 down to retirement age as early as possible. Leaving the public sector pot at its full value until 68. 

Do any of our resident TAMB pension experts think that’s on right track or am I missing anything? 

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  • 3 weeks later...
On 10/13/2021 at 7:49 PM, AlfieMoon said:

I posted a while back asking about annual management charges but have been pretty happy to keep my existing arrangements ticking over since then. Not sure if there’s any big benefit by consolidating/moving to be had at this time other than making it easier to track. 
 

I now have:

3 private defined contribution pensions (currently £37k + £7k + £5k)

1  current public sector defined benefit pension accruing £1k pa, sitting at approx. £4K so far (4 years in) and to be adjusted for inflation each year.

1 AVC pot (defined contribution) of approx. £4K pa building alongside my public sector pension. 

Age 38 and hoping the public sector pension continues for the foreseeable. Certainly no plans to move. 

My 3x private, plus 1x AVC are my plans to bridge the gap from 68 down to retirement age as early as possible. Leaving the public sector pot at its full value until 68. 

Do any of our resident TAMB pension experts think that’s on right track or am I missing anything? 

typically if you are no longer an employee, if you have legacy employer schemes, you no longer are entitled to the discounted management fees, + likely there are quarterly fees you are triplicating  across all 3 funds + the 3 funds if employer are likely limited to a number of funds - ie I removed from my employer pension choice of 8 to open architecture where i have choice of 8,000

take a look at www.iii.co.uk, and consider if you want to consolidate pensions + I bet you don't review those pensions very often and move around + at your age should be going aggressive on equity  - i'm a pedantic fecker - i look daily on my pension to see the trend on the individual funds, and even track quarterly the one's i exited  to validate i made correct choice

I've started looking 10-15 years down line, and the Total LIfetime Allowance of GBP 1 Million starts to get concerning if they keep freezing that.  

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54 minutes ago, euan2020 said:

typically if you are no longer an employee, if you have legacy employer schemes, you no longer are entitled to the discounted management fees, + likely there are quarterly fees you are triplicating  across all 3 funds + the 3 funds if employer are likely limited to a number of funds - ie I removed from my employer pension choice of 8 to open architecture where i have choice of 8,000

take a look at www.iii.co.uk, and consider if you want to consolidate pensions + I bet you don't review those pensions very often and move around + at your age should be going aggressive on equity  - i'm a pedantic fecker - i look daily on my pension to see the trend on the individual funds, and even track quarterly the one's i exited  to validate i made correct choice

I've started looking 10-15 years down line, and the Total LIfetime Allowance of GBP 1 Million starts to get concerning if they keep freezing that.  

Thanks Euan - makes sense! 👍

I’ve recently started trending my 3 legacy plans against each other to see how they’re comparing. Already seeing which is weakest and building some data before I take any action. Not quite as pedantic yet, but trying to get to your level. 😂

A couple of my providers still allow transfer in but with quite limited fund options which is something you touched on. Will look at iii as suggested but don’t think my current fees merit that platform yet. I am very much in for equities as you suggest.
 

It would be nice to have the £1m ceiling to worry about 😂 .. not quite sure I’ll make it there even with the 20x DB calculation to be factored in. I’d need some pretty impressive DC growth coupled with a decent promotion / salary jump to boost DB pot. 

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2 hours ago, AlfieMoon said:

Thanks Euan - makes sense! 👍

I’ve recently started trending my 3 legacy plans against each other to see how they’re comparing. Already seeing which is weakest and building some data before I take any action. Not quite as pedantic yet, but trying to get to your level. 😂

A couple of my providers still allow transfer in but with quite limited fund options which is something you touched on. Will look at iii as suggested but don’t think my current fees merit that platform yet. I am very much in for equities as you suggest.
 

It would be nice to have the £1m ceiling to worry about 😂 .. not quite sure I’ll make it there even with the 20x DB calculation to be factored in. I’d need some pretty impressive DC growth coupled with a decent promotion / salary jump to boost DB pot. 

iii.co.uk are around 250 a quid a year in fee's for a SIPP  -nothing beyond that other than your own choice of fund (ie Fundsmith, Scottish Mortgage Investment Trust & their own underlying management fees  )   i think my old employer fund was around 0.3% or something like that  that employer paid  - 

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looking at my 5 year growth from July 16, with no additional contributions i am looking at 110% growth 

putting in context given other folks are mentioning pots - my main pot which i removed from employer scheme (+ my defined benefits pot) have grown from 196K to 410K in those 5 years  - kind of waiting for some sort of crash again, but considering as lifetime pension with all equity even getting into my 60's & 70's, so never going conservative, and have 20-30 years to ride out peaks and troughs, maybe 40-50 years if consider wife is 15 years younger than me       

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On 10/13/2021 at 7:49 PM, AlfieMoon said:

I posted a while back asking about annual management charges but have been pretty happy to keep my existing arrangements ticking over since then. Not sure if there’s any big benefit by consolidating/moving to be had at this time other than making it easier to track. 
 

I now have:

3 private defined contribution pensions (currently £37k + £7k + £5k)

1  current public sector defined benefit pension accruing £1k pa, sitting at approx. £4K so far (4 years in) and to be adjusted for inflation each year.

1 AVC pot (defined contribution) of approx. £4K pa building alongside my public sector pension. 

Age 38 and hoping the public sector pension continues for the foreseeable. Certainly no plans to move. 

My 3x private, plus 1x AVC are my plans to bridge the gap from 68 down to retirement age as early as possible. Leaving the public sector pot at its full value until 68

Do any of our resident TAMB pension experts think that’s on right track or am I missing anything? 

forgot to say - just my opinion but that is too late to draw down on defined benefits final salary - you never know tomorrow's health, and how healthy would you be at that age to enjoy the money - in addition average age of life is 82, and a lot of people pass earlier, so based on average age you are only getting 14 years out of it, and even then, when likely health may not be the most premium -

one of the considerations i had on my final salary scheme was that i thought i could grow the money quicker than the inflationary matching increase - over 5 years this would have been around say 12% increase inflationary inside the defined benefits, and have grown that pot, i removed from final salary by 110% -sometimes you are better off getting the money early, and doing something with it 

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9 hours ago, euan2020 said:

forgot to say - just my opinion but that is too late to draw down on defined benefits final salary - you never know tomorrow's health, and how healthy would you be at that age to enjoy the money - in addition average age of life is 82, and a lot of people pass earlier, so based on average age you are only getting 14 years out of it, and even then, when likely health may not be the most premium -

one of the considerations i had on my final salary scheme was that i thought i could grow the money quicker than the inflationary matching increase - over 5 years this would have been around say 12% increase inflationary inside the defined benefits, and have grown that pot, i removed from final salary by 110% -sometimes you are better off getting the money early, and doing something with it 

My current thinking is that I’d be pretty hesitant to move the DB pot in future. I have my risk averse portion of my brain assigned to my DB. 
 

I’m happy to see how much DC I can build in order to bridge down to early retirement at 57-60 but there’s a long way to go and lots of variables. If I can get a big enough DC pot then I can leave my DB until 68 + SP. At current accrual rate I would get to £24k pa DB + £9k SP in today’s money. A lot can change though with jobs/family so I’ll have a better idea where I stand in 10 years (48) and start thinking about financial advice at that stage to give due consideration to things like shifting the DB pot. 

Edited by AlfieMoon
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1 minute ago, AlfieMoon said:

My current thinking is that I’d be pretty hesitant to move the DB pot in future. I have my risk averse portion of my brain assigned to my DB. 
 

I’m happy to see how much DC I can build in order to bridge down to early retirement at 57-60 but there’s a long way to go and lots of variables. If I can get a big enough DC pot then I can leave my DB until 68 + SP. At current accrual rate I would get to £24k pa DB + £9k SP in today’s money. A lot can change though with jobs/family so I’ll have a better idea where I stand in 10 years (48) and start thinking about financial advice at that stage. 

yes - keep DB pot - i was more discussing accessing it before befo6re 68 = there is reason they pay out more at that age, cos they are banking on your dieing so less exposure of payout  

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51 minutes ago, euan2020 said:

yes - keep DB pot - i was more discussing accessing it before befo6re 68 = there is reason they pay out more at that age, cos they are banking on your dieing so less exposure of payout  

Yeah, it is tipped towards them paying less - especially west of Scotland with lower life expectancy! 🙈 

I think I’m fortunate that I’ve a good balance of DC & DB that should give me options in years to come. 

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