Retirement fund

[Wishiwasonabeachinmaldives]

I went to a financial advisor unbeknownst they were going to try and sell me a new pension policy (SJP) but obviously I said I didn’t want a new policy when so close to be able to go into it if I need (I was made redundant earlier this year and felt very vulnerable). Despite this he said I was in a better position than most but that I should try and simplify my pensions (I have 7 in total when this new job pension kicks in). He said I was best to try and get the fund actively managed rather than just let it flap around in today’s markets ups and downs. Im monitoring it and it’s been really weird - making around £3000 a month usually and on two months out of the last 6 made £18K one month and £10k on another. Is this normal? Is it best to leave then as is or consolidate all? How do you get a truly independent advisor?

I think this is going to depend on how long you've got left? There's quite a lot of research that says over the long term, passive funds outperform active funds and attract much smaller fees. That would be very attractive to your advisor because he'll take a few or cut for recommending such products.

Not sure about how to secure an truly independent advisor when they are all ultimately incentivised to secure your business.

You need an Independent Financial advisor who has access to the whole market, who will work within your risk tolerances.
If you don’t have at least £250k though, they probably won’t be interested.
Alternatively you can open a Sipp with someone like Fidelity or Hargreaves, transfer your other pensions in and choose a managed fund, if that’s what you really want, or simply choose a Passive global tracker or a lifestyle type fund for far less cost.

Avoid SJP.

Consolidating makes sense just for ease of keeping track of things. Especially when you start drawing on it and need to calculate your tax free sum.

If you're happy self managing and do have £250k or more, Fidelity will give you free access to their wealth management service for having that much invested with them. Not independent, of course, but a nice bonus.

SJP.

OMG.

Talk to an IFA about your options rather than those charlatans.

Consolidation is good as it will allow you to control the risk of the whole pot. You will probably want to have a single pot when you draw the benefits at retirement too so it makes sense to do it now.

Risk is always key in line with your term. Money you need soon is better with low volatility however if you do not plan to access funds for the longer term you can take greater risk.

I would mix and match passive and active funds then you get the best of both worlds.

I'd leave well alone as seems to be performing well. You could consolidate into 1 but it not be so successful. I have a fund that has been jumping up like this too. I've leaving mine.

Avoid SJP. I looked at them and was considering consolidation of pensions. Heavy sell on how well their funds performed but they were impossible to pin down on fees. Totally opaque. There’s been a lot of volatility in recent months due to Trump.

SJP advisors say to their clients that they will recommend a charity they like for a grant from them. The charity follows it up by applying on their recommendation. Then never hear anything again. Appalling way of sucking your client in. That's aside their fees.

Go onto YouTube and do the Rebel Finance School course for free. Loads of MNetters recommend it. It will explain everything - and tell you to avoid SJP!

He said I was best to try and get the fund actively managed

Wrong! Passive index funds are best. Depends how close you are to drawing down the pension whether you should go for a split of equities and bonds.

Second this advice 👍

Go onto YouTube and do the Rebel Finance School course for free. Loads of MNetters recommend it. It will explain everything - and tell you to avoid SJP!

He said I was best to try and get the fund actively managed

Wrong! Passive index funds are best. Depends how close you are to drawing down the pension whether you should go for a split of equities and bonds.

You don't have enough information to say it's performing well. If the OP has £1m invested then the figures quoted suggests a return of 5.8% over the last 12 months. Is that good?

The government’s official pension advice service:

https://www.citizensadvice.org.uk/about-us/information/pension-wise/

Don't do anything until you have spoken to them.

Pensionwise don’t give advice - they simply go through the options available, which anyone can do themselves online.
They WILL NOT tell you which option is best for you.

SJP cost a fortune and tie you in with penalties for transferring out - don’t touch them with a barge pole.