Pension Dilemma - bail out or remain invested
Posted: May 20th, 2022, 4:16 pm
Hello folks,
Wanted peoples view/take on something that has been going over and over in my head lately as I undertake my 'five year pension review'.
I have an Aegon pension through a previous employment and paying nearly £3k in annual mgmt charges on two funds. One is a passive Tech fund which has rocketed and can get elsewhere for much less and an active fund (high charges and an underperformer.
So the dilemma is:-
Remain invested with Aegon and continue to benefit from compounding on the Tech Fund over the long term.
Or...
Encash (in specie on these funds unavailable sadly) and transfer to my ii SIPP. I will lose the compounding effect already baked in but save on the charges and re-invest from scratch.
I'm about 5-10 years from drawdown.
Any thoughts/comments/insights are most welcome.
darrinm
Wanted peoples view/take on something that has been going over and over in my head lately as I undertake my 'five year pension review'.
I have an Aegon pension through a previous employment and paying nearly £3k in annual mgmt charges on two funds. One is a passive Tech fund which has rocketed and can get elsewhere for much less and an active fund (high charges and an underperformer.
So the dilemma is:-
Remain invested with Aegon and continue to benefit from compounding on the Tech Fund over the long term.
Or...
Encash (in specie on these funds unavailable sadly) and transfer to my ii SIPP. I will lose the compounding effect already baked in but save on the charges and re-invest from scratch.
I'm about 5-10 years from drawdown.
Any thoughts/comments/insights are most welcome.
darrinm