Pension pot now complete . What to do with it? Very glad of your thoughts?

[shrinkingslowly]

I have a pension with Aviva. I have just retired so this is in effect over. It’s in very low risk investments and currently worth about 200k . I don’t need it as I have other income but obviously I’d like it to grow. I got advice from a financial advisor but TBH the costs of them managing it seemed quite steep.
would you get it managed or transfer to another Aviva product?
I’ve already taken most of my tax free allowances so just wondering what might work well - or maybe I I should just go ahead with the Financial advisor.

Why did you chose very low risk investments when you had other income?

You need to fully assess your income streams, outgoings, goals etc for the next few decades to determine that answer.

I had a small pension from an employer I only recently discovered. When I took the 25% out I was required to purchase another product as I wanted it to maximise return and it was not income I needed to rely on (so I didn’t want an annuity) so went for a higher end of medium risk investments with an average historial (so no guarantee it would continue) of about 15%. It was all carefully explained and illustrated by the company (PRU) without offering actual recommendations. Yes there is a charge but I think around 0.8%. Look into what other products Aviva offers.

I would absolutely not get it managed as they charge an arm and a leg.

Can you leave it in the pension but change the risk profile?

Because I had a meeting with the pension people and was very cautious about things. Obviously now I know that was a mistake.
yes I think the amount they want to charge is a lot
i have booked a call with Aviva meanwhile

Speak to a wealth manager direct, they’ll manage for you and court you with events and lunches !

What do you mean by 'another Aviva product' - a different fund within the pension, or something other than a pension?

If the latter, why?

Either way, why limit yourself to Aviva?

What would you want the manager to do, and how steep is steep?

Not for £200k, they won't!
Wealth managers aren't interested until you can add a zero or two to that.

Book an appointment with Moneyhelper, free government pension advice https://www.moneyhelper.org.uk/en/pensions-and-retirement

😂Oh no they wont. Not for £200k.

Buy an annuity with it. Canada Life seems to be offering the best prices. With £200k you'd get about £12k for life.

I would do this too in the first instance. And check the fee they charge. There’s a very good chance it’s an easy change and you can stay where you are. Don’t over complicate things and definitely do not let anyone else manage it.

Sorry me again but I did just want to say; your current risk profile isn’t necessarily wrong.

You have other income you say, so this could be seen as a secure extra bit of money when needed. A modest amount but highly likely to be available.

Or you can decide: I have other income, if I lose this money that’s fine so no problem with taking on more risk.

Neither is wrong. Setting things up for potentially making more isn’t necessary a better decision.

Yes there will be some wealth managers that are. Not Coutts or Barclays Wealth but others like Quilter or Brewin Dolphin.

I would change the risk profile given that you have other income and want growth rather than security.

Why? She already has an income and wants growth.

@GOODCAT@IsItSummerSoon Thankyou both. Yes I am ok as I have a defined benefit pension plus my husband has two defined benefit pensions so this money is really earmarked for things like care in the future staff like that really.
o think that you’re right I’ve now looked into it and think I can just make some changes and leave it with Sviva as they still manage it but for a very small charge.
Thankyou all again

Another thing to look into is whether Aviva offers beneficiary drawdown. If you die over the age of 75, whoever inherits your pension will be taxed on it at their marginal rate. In theory, they can either take it all in one go or flexibly over a longer time period.

However, if your pension platform does not actually offer beneficiary drawdown, then the person who inherits gets no choice. The money is dumped upon them all at once. This would push them into a very high tax bracket for that one year.

I don't know whether Aviva offers beneficiary drawdown, but I think you should ask them. It seems quite possible that a large amount of money may be left in your pension when you die.

Seek advice, if it grows at 7% pa it will double in 10 years