Can I respectfully disagree-it was a racket
Another of my lessons learnt along the way was the equal performance of the same mutual fund -one in a pension wrapper format and same one as a pure stand alone investment format
Rather gave me a shock!
I was paying 40% tax at the time
The company was taking in its costs the equivalent of my 40% tax relief for the “benefit “ of one fund being in a pension wrapper!
Another incentive to run my own SIPP with othe less costly providers!
xxd09
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IC: Supersize your SIPP
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- 2 Lemon pips
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Re: IC: Supersize your SIPP
They were high cost, poor value, low innovation products, provided by a very small number of select companies and into which people were forced by law to commit their retirement savings forever.
It was a terrible deal for savers which they couldn't escape from and a good earner for insurers, from which they could earn a decent profit and keep plenty of residual value.
It was a legalised racket and thank goodness the government filled in the "moat" on that particular business model, even if it was mainly an accident.
It was a terrible deal for savers which they couldn't escape from and a good earner for insurers, from which they could earn a decent profit and keep plenty of residual value.
It was a legalised racket and thank goodness the government filled in the "moat" on that particular business model, even if it was mainly an accident.
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- Lemon Slice
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Re: IC: Supersize your SIPP
Alaric wrote:scrumpyjack wrote:It would be extremely unusual to have a GAR or protected benefits with a defined contribution pension
One possibility is a plan written through an Insurance Company which offered a with profits fund as one of its options.
Another would be a hybrid plan, sometimes popular in the past with schemes switching from defined benefit, which offered some form of minimum benefit or rate of return.
I'd agree that GARs disappeared from otherwise plain investment linked contracts around 40 years ago.
I had a GAR with both a group personal pension and equitable life (if I remember correctly) in both cases the transfers went through unquestioned but these were some time ago and I think one of the recipients at the time had a policy of no protected rights which I ignored.
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