Question: My stocks and shares ISA have done far better than my pension over the past 12 months. I usually just use tracker funds for my ISA, and although it’s taken a dip after Trump’s tariffs, this still wasn’t as dramatic as the hit my pension took. I’m thinking I’d rather just manage my pension cash myself – can I get my work to pay straight into an account I manage, rather than my workplace fund?
The secret is to keep calm. Investing is a long-term game, especially when you are saving for retirement. But that doesn’t mean deliberately not taking a good look at your current investments and deciding if the current strategy is still the right one for you.
square MONEY Should my partner and I split holiday costs 50-50 even if I chose the trip?
Read More
When you are automatically enrolled into a pension scheme your contributions are invested in the default fund. You can instead choose your own investments if you want, but over 90 per cent of workers don’t, instead keeping this investment selection.
The default fund aims to meet the needs of all the pension scheme members, which could run to thousands and thousands of workers. As it has be all things to all people, it often has a medium or low-risk profile to avoid sudden plummets in fund values which may unnerve some pension savers. But that also means it won’t necessarily produce spectacular returns either.
Alternatively, you can look wider than the workplace pension. Sometimes, an employer will agree to pay pension contributions into a pension account of your choosing, and it’s always worth asking if they will do this. You would have to opt out of automatic enrolment. But often this is just more administration for the employer, and they may be reluctant.
Often, employers will offer to pay more than the minimum if employees also pay more, and it’s worth taking them up on that offer. After all, it’s free money, and if you don’t do this, you probably won’t receive the money in any other way.
However, a word or two of warning before you do this. Don’t transfer any pension that your employer is still paying into, otherwise you will lose those valuable employer contributions – unless the scheme allows you to partially transfer while still remaining a member.
It sometimes takes the shock of market volatility for people to question whether their investments are in the right place. It’s always good to address that question, but remember that making snap decisions is more likely to lead to outcomes that aren’t right for you. So, take your time and consider your options.
Read More Details
Finally We wish PressBee provided you with enough information of ( My ISA is outperforming my pension. Should I manage my retirement savings myself? )
Also on site :