Prudential pension should i keep it or get a new one

[cutecockerpoo12]

Hello i have a prudential pension that is worth 4ok.
I am now mortgage free and want to start paying those premiums into my pension.
I am 54 and self employed. Should I just get a new pension. Or keep the prudential one.

Not really experienced enough to advise but I had 60k in a similar pension (after 14 years)and I used it to buy an annuity only got
283 per month However much depends on the going rate at the
the time I think but 40 k does seem paltry
I think a Sipp is the modern way
as,you get tax relief

Not enough information.

Compare the costs. You may be able to get a SIPP with a global fund inside it for under 0.4% fees. The Prudential pension plan may have fees higher than that.

A podcast which might help you to determine what fees and fund choices you have with the existing pension: meaningfulmoney.tv/pensionschecklist

Try this link: meaningfulmoney.tv/2021/03/16/uk-pensions-checklist/

Thank you for the reply.
I was thinking approx 500 a month for the next 10 years.
I’m really panicking that I have nothing in place.
I looked at the forecast and the prudential fees are £450 per month. Do you suggest and independent financial advisor.
I hate change and the pru does seem a company I have heard of

£450 a month in fees?! That’s ridiculous.

sorry if I mislead you
450 per year fees
i want to pay £500 per month

Well that’s a relief! But you could definitely reduce that by moving it.

main thing you need to do is understand what you’re invested in, what the fund charges are and the management charges, and start shopping around. Consider when you want to start accessing it, given your age you can access it pretty soon but if you’re investing in the stock market that needs a longer time horizon.

Do you think a financial advisor

Not really for those amounts, educate yourself and you can manage it without paying an advisor. Try the above links, or Rebel Finance School.

If you log onto the Prudential website, they offer a FA service through M&G I think they are called. I had a call with one of their advisors last week who was really good and gave some sound advice on the actual terms of the pension I had and what I could do with it, plus how it had done over the term I had it. Although linked to Prudential he was independant in advice and his advice was free.

It depends on the age and style of the pension on what would be best - mine is a very old "with profits" pension and after talking to him I decided to just leave it be.

Thank you so much.
I have just checked. It’s a the same with profits policy.
its 34 years old.
I have never intentionally paid into it personally. Just when I was employed 30 years ago and I contracted out of SERPs
so in 34 years it’s got to 40k.
when I looked the £450 annual management fee seemed a lot.
my wife is disabled having suffered brain tumour stroke and heart attack.
so I want the pension to transfer to her if I die.

The fund I am in has grown 90% over the last 10 years which is fairly good - sounds like you are in the same fund - there is a fact sheet about the fund on purdential.com - not your personal portal (which is crap) but on their main page. I was told I could cash in or buy an annuity. Comparing the fees, it was pretty low for pensions. If you go to their site, there is an option to ask for advice and my guy phoned me within a few days, was a really nice chap (and I have talked to a lot over the last few years!!).

Thank you so much
i will look into this

I think a Sipp is the modern way as you get tax relief

You get tax relief on all types of pension. The advantages of a SIPP are the ability to choose a wider range of investments (not necessarily an advantage if you want simplicity) and potentially lower fees.

Was just going to email the prudential and say I will start contributing.
then it came up on my phone the prudential shares have gone down.
I am drastically burying my head in the sand and I am overwhelmed.
I know it needs sorting.
thanks for your advice c

All investments are going up and down like billyo - don't let that stop you having a conversation. A pension is just a wrapper around an investment in stocks, shares, bonds etc. Today they might be down, tomorrow they might be up!

Prudential shares going down has no effect on your pension. That is about shares in the company itself, not the shares held within your pension pot - which will be in hundreds or thousands of different companies, trusts and funds worldwide.

(Also, shares that have gone down usually go up again, so if you did buy some now you'd effectively get them at a discount.)

You have to pay fees to all pension funds. Prudential are not the cheapest, however their With Profits Fund is solid and not a high risk strategy.

dont Have a clue but if I pay in 5k a year.
will just a bit of that show
in the last 30 years that I have not contributed there has never been a loss. But once I start contributing will it start going up and down.
sorry for the pathetic question.
its Thursday tomorrow
then another week
i still haven’t sorted it
talk about burying my head in the sand
Thank you for all the help

My wife just had a heart attack
iv other priorities

Oh no, I am very very sorry to hear that 😢are you okay? Do you have family around? Take care x

The fund will go up and down with the stock market whether you are paying into it or not. Paying in gets you the tax relief and a larger pot.

Hope your wife recovers well.

Thankyou for your good wishes. Yes we have good family. She is out of hospital
just trying to juggle things and sort my pension.

Its an old style with profits fund so won't have the daily ups and downs of the stockmarket. https://www.mandg.com/pru/customer/en-gb/funds/investment-fund-range/with-profits
It maybe that as its such an old fund there are hidden commissions paid from the fund. Its not a simple answer as to whether you should contirbute to this plan versus setting up a new plan. You need to contact the and ask some questions about the charges on the plan and whether indeed you can even make any new contributions, as that may not even be an option.