Goldman moves in on pensions by Finance News Bulletin
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Published: 28/04/07
All times are London time Search information in the FTcom siteSearchSearch Quotes in the FTcom siteQuotesCOMPANIES Financial servicesBreadcrumb follow navigation:FT house > Companies > By sector > Financial servicesGoldman moves in on pensionsGoldman Sachs has applied to the monetary Services Authority to put up a wholly-owned life assurance subsidiary in London as it prepares to launch a commerce buying corporate pension schemesThe company, which will be sprint by Addy Loudiadis, a senior Goldman financier, is to be used as a vehicle to acquire pension schemes closed to new members
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The UK's Cheapest Pensions - Published:18/10/07
One of the biggest evils with investing for the long term is the charges that build up For instance, if you invest in a stock-market finance which makes 10% a year but has a fee of, speak, 2% a year, then your annual return drops by a fifthgratitude to the astonishing power of compounding, the loss of 2% of your money each year in cost has an enormous impact on the final value of your investment The bench below shows how much a one-off bump sum of £1,000 would be value after various periods, growing at 10% a year or 8% a year:As you can see, that 2% annual charge makes a enormous difference, especially over decades Indeed, after forty existence, our fee-free fund grows to be worth more than twice as much as its rival that charges 2% a year OuchAs charges have a huge bearing on investment income in the long sprint, we Fools take great care not to pay over the chances for investment management Indeed, The Motley Fool is a big admirer of index-tracking funds -- passive investments which simply track a exacting index (such as the blue-chip FTSE 100 directory at low costAlas, until very lately, finding ultra-low-cost pension funds in which to save for departure has been pretty tough Although the government launched low-cost Stakeholder pensions in April 2001, these can charge up to 15% a year for the first ten years and then 1% thereafter in spite of the protests of the pensions industry, these charges are still far too far above the ground for my likingHowever, the great pensions rip-off is under danger, thanks to two new ultra-low-cost pensions which have wedged my eye The first comes from most important IFA Hargreaves Lansdown, which offers a very cheap Self-Invested individual Pension (SIPP) Thanks to its mega-low charges, I have invested in an HL SIPP, as have my six-year old young man and four-year-old daughterThe HL Vantage SIPP has no set-up charges or ongoing costs, assuming that you spend in certain money What's more, by investing in the HSBC FTSE All-Share index-tracking finance, you pay a total expense ratio (TER, or total continuing charges) of just 025% a year The smallest amount investment in this SIPP is £50 a month or £1,000 a year, putting it well within the reach of most workersThe other low-cost pension comes from global investment huge loyalty International This week, it launches a personal pension plan which is fee-free for existence If you open a Fidelity Personal Pension before 10 December, then you disburse no set-up cost, annual administration charges or upfront cost on funds everThe only fees you pay are the customary annual management charges levied by the asset companies that you choose to manage your cash So, by investing in Fidelity's MoneyBuilder UK Index, one of the UK's cheapest follower funds, you can create a pension which has total annual operating cost of just 03% However, this retirement fund plan requires a minimum contribution of £300 a month, £3,000 a year, or £10,000 for bump sums and transfersalso, it's worth noting that both of these pension plans charge no cost on inward transfers, so you can slash the cost of obtainable personal pensions by transferring these money to HL or FidelityI've never seen such cheaper pensions for sale to the general public in my whole life Indeed, some retirement fund funds have TERs over ten times as far above the ground, that is, 25%+ a year So, fee-conscious Fools, I highly recommend both of these ultra-low-cost pensionsMore: Choosing A inexpensive SIPP | Learn more about The Fool's SIPP | spend in a low-cost index tracker todayCan't find what you require in Retirement And Pensions Try one of our other personal finance areas© Copyright 1998-2007, The Motley trick Limited All rights reserved This fabric is for personal use onlyPlace of Reg: England & Wales Company Reg No: 3736872 storage bin Reg No: 735 7818 01 Registered place of work: 30 Great Pulteney Street, London.
Read More: The Uk's Cheapest Pensions >>Pensions: The choice is simple - or hard - Published:23/03/07
Employers must choose between simple or more complex pension schemes ahead of the government's 2012 introduction of Personal financial records (PAs) and required pension contributions, Legal & General has declaredAdam Boulding, Legal & General's pensions plan director made the announcement at a briefing that took put at Cass Business School at metropolis UniversityAccording to Debbie Harrison, senior visiting fellow at the pensions institute, the huge majority of firms will opt for the default fund and could be as many as 99 per cent - based on obtainable defined contribution schemesMr Boulding supposed: "If employers want to keep pensions cheap and simple, then PAs will offer a very basic product at smallest amount cost But if they would like to adapt a pension diagram to suit their business and appeal to their target employee audience, then traditional pensions offer more good-looking features"Both Mr Boulding and Ms Harrison were instrumental information in the Department for Works and Pensions' reform of pensions last summer and during the briefing they focused on addressing a variety of issues relating specifically to personal financial records and default investment fund.
Read More: Pensions: The Choice Is Simple - Or Hard >>Finding out more about your pension - Published:21/11/06
The state pension is the bedrock of most people's departure provision On standard, the over-75s derive nearly 60% of their total profits from the state pensionThe government has said that it wants the state pension to stay at the heart of persons's retirement provisionBut to be entitled to the full condition pension you need to have made 44 years of National Insurance aid if you're a man, and 39 years if you're a ladyPeriods of not being employed can mean that you fail to meet the criteria to get a full state pensionHowever, people receipt unemployment or incapacity benefit will have their state pension accredited as though they were workingIn adding, people spending time out of the workforce to look after children may be eligible for Home blame Protection (HRP) HRP ensures national insurance aid are creditedYou can obtain a forecast of your state pension from the Pensions Forecasting overhaul by vocation 0845 300 0168Alternatively, you can write to: State retirement fund Forecasting Team Future retirement fund Centre The retirement fund Service Tyneview green Whitley Road Newcastle upon Tyne NE98 1BAIf you find that you are behind in your national insurance contributions you can disburse to make up the shortfallThe S2P replaced the condition Earning Related Pension (Serps) on 6 April 2002 As the name suggests the S2P is an additional retirement fund systemUnder S2P, if you make more than £75 a week and have not "contracted out" of the system you will be earning additional retirement fundCalculating how much the S2P/Serps is worth is notoriously tricky as the final worth depends on an individuals earnings over a long era of timeAccording to the Pension Advisory Service (Opas) a S2P/Serps associate who has earned enough to pay the top speed of Income tax since 1978 would be free to £69 a week extra pension if they retired tomorrowHowever, most people have to get by on considerably less, maybe now a few pounds a week as they have either not been paying S2P/Serps for a long time or have not enjoyed a high profitsMembers of qualifying confidential pension schemes can "contract out" of S2P If employees link a contracted-out occupational pension scheme, they and their employer pay inferior National Insurance contributionsIf you contract out of S2P using a personal retirement fund plan or a stakeholder retirement fund plan, the government pays part of your National cover contributions into the plan once a year in the form of a refundHowever, there has been growing concern that some consumers have been badly advised by monetary advisers to contract out of S2P/Serps in the pastThe Pension Service website has more in order on the S2P at its website: wwwthepensionservicegovukOccupational and workplace pension schemes are duty bound to send their members an yearly retirement fund statementIn the case of final salary retirement fund schemes, retirement income will depend on length of service and the last salary of the workerUnder this type of scheme, the amount of pension earned should go up each day unless salary levels dropHowever, in recent years many final salary schemes have been replaced by money buy pension arrangementsUnder money buy, the dimension of the pension pot depends upon a combination of total contributions and investment performanceAs a result, the yearly statements from money purchase pension schemes will give a likely prospect value based on different investment performance scenariosUltimately, under cash purchase arrangements it will be up to the scheme member at retirement to get the best possible pension - a financial product which gives an income for existence - with their retirement fund potWhatever type of scheme you are a member of, the trustees or your employer should have details of where you can get an up to date forecast fromAs for members of stakeholder or personal pension schemes they require to mark to their providerIf you would like to trace a pension scheme you have misplaced touch with the Pensions Scheme Registry can assist on 0191 225 6316Financial advisers have received a very awful press following a succession of mis-selling scandalsAdvisers have been accused of putting the chance to make fat commissions before their clients' most excellent interestsIndependent financial advisers (IFAs) work for themselves and most offer the choice of paying for recommendation through fees or allowing them to collect commissionFinancial advisers are employed by a manufactured goods provider, they are paid through a salary but some earn substantial commissions from the goods they recommendThe Financial Services power (FSA), the City watchdog, has a pensions guide for consumers on its websiteIn addition, the watchdog, along with the Department for Work and Pensions, produces free booklets and fact sheetsAnnuity improvement Women 1 Women 2 retirement fund rights Divorce Work pensions Lump sums retirement fund Credit Frozen pensions Shortfalls Overseas pension little pensions Tax and pensions Pension.
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