Pension management

[Dasher789]

I am 33 and have a pension fund of just under £45k. Around £5k of this is with my current employer pension fund and the rest is with my old employers pension fund.

I am not massively financially savvy but I no how to log onto the pension website and look at the forecasting and performance graphs. Both of my pension funds are invested in a bunch of funds that I chose personally from the options rather than in the standard age tracker thing. I have gone for mostly equities and would expect to continue investing in equities until I’m maybe 45 - 50 and then switch to more conservative options.

I don’t no whether to put my £40k with a financial advisor or whether to transfer it into my current pension scheme and invest it myself. I got a quote from a financial advisor who would take 3.6% upfront and then the ongoing fees would be 0.5% annually. The 0.5 is competitive but the 3.6% fee for initial advice seems high. I don’t no what kind of advice they will give me, every chat I’ve had with a FA to date has been explaining the options but ultimately being told it’s my decision. Can they really have any more insight than the fund graphs?

If I transfer my old pension to my current employer scheme there is no fee but as I say, I don’t have expertise in pension investing.

Do it myself or use the FA?

If you were able to make informed choices that suited your circumstances what's changed now?

About the only advantage of the 3.6% fee now is if you decide to do it 5 years down the line it's 3.6% of a larger amount

What's your concern at combining them and continuing the same strategy if you are happy with it? Does the current platform offer low enough fees and a decent choice of investments so you can switch as and when your view changes?

@wobytide nothing has changed, I just don’t no if what I’m doing is any good. I’m not sure if the FA can offer some great insight that I wouldn’t achieve myself. I’m under the impression they only have access to the same information and if that’s the case then I think I may as well continue on

I don’t think you need a financial advisor for a sum of that amount. Basically I would move it to my current pension and invest it in low cost passive funds in your current pension. Pick something quite mainstream eg general market tracker and you should be fine.

Probably the worst thing you could do is waste £1000s on fees for a financial advisor or fund manager.

Anyway that’s what I would do (have done). But obv not giving financial advice.

@Villagewaspbyke

I don’t think you need a financial advisor for a sum of that amount. Basically I would move it to my current pension and invest it in low cost passive funds in your current pension. Pick something quite mainstream eg general market tracker and you should be fine.

Probably the worst thing you could do is waste £1000s on fees for a financial advisor or fund manager.

Anyway that’s what I would do (have done). But obv not giving financial advice.

Agree with this. I manage my own pension fund and this is pretty much what I do. Unless your finances are complicated, simple and low cost is often fine.

I've got a similar amount to you OP and am a similar age, is there a reason you chose your own funds rather than the standard? I only ask as you don't sound very confident in your choice.

I wouldn't bother with an IFA with that amount of money personally. I'd be interested to hear others' thoughts though and advice about managing your own funds. My pension scheme has a default option but also a managed higher risk option which is what I'm invested in. It's done quite well for me so far to be honest and my plan is to move it to lower risk investments by the time I'm 50.

Also agree with @Villagewaspbyke. Keep it simple. Low cost funds are safer and do well in the long-term. So many more 'exciting' funds that are sometimes recommended by advisors tend to fluctuate hugely and have a large % of gains eaten up by charges/fees. If your employer's scheme offers Vanguard, that's where I'd go - a mix of UK, European and US tracker funds.