New Jet2 Pension Scheme - expert advice please!
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New Jet2 Pension Scheme - expert advice please!
Would someone who knows about pension schemes please comment?
From 1st June we at Jet2 have a new pension scheme. Scottish Widows is the provider with Hargreaves Lansdown acting as broker. Scottish Widows allows you to put your pension money into a range of their own funds plus numerous others. The Company (technically the Dart Group) puts in 8%, the individual anything from 2% upwards.
My query is about fees and commissions. The administration of the scheme seems to be paid for by Scottish Widows deducting an annual commission of approx 1% to 2%, depending on the fund. This money goes to the broker. My guess is that the Company is paying little or nothing towards the costs, Hargreaves Lansdown being happy just to have the commission. This of course comes from the employee's pension pot.
Historically I always thought that company pension schemes were good value because the company carried much of the administrative burden. In this case it may be that all of the costs are actually been borne by the employee.
Obviously it's worth putting in 2% to get the 8%. If some of the costs are being borne by the Company then it would make a lot of sense to put in far more than 2%, maybe right up to 100% if you have a windfall to dispose of. But if the costs are no better than outside the scheme, there's no point in necessarily putting in more than 2%. Anything extra can go elsewhere.
I hope I'm wrong, and that Jet2 is helping us out with costs. But maybe they aren't, and this is just the normal way that things are done these cost-paring days.
Any comments and advice would be much appreciated by many of us, I'm sure. Thank you!
From 1st June we at Jet2 have a new pension scheme. Scottish Widows is the provider with Hargreaves Lansdown acting as broker. Scottish Widows allows you to put your pension money into a range of their own funds plus numerous others. The Company (technically the Dart Group) puts in 8%, the individual anything from 2% upwards.
My query is about fees and commissions. The administration of the scheme seems to be paid for by Scottish Widows deducting an annual commission of approx 1% to 2%, depending on the fund. This money goes to the broker. My guess is that the Company is paying little or nothing towards the costs, Hargreaves Lansdown being happy just to have the commission. This of course comes from the employee's pension pot.
Historically I always thought that company pension schemes were good value because the company carried much of the administrative burden. In this case it may be that all of the costs are actually been borne by the employee.
Obviously it's worth putting in 2% to get the 8%. If some of the costs are being borne by the Company then it would make a lot of sense to put in far more than 2%, maybe right up to 100% if you have a windfall to dispose of. But if the costs are no better than outside the scheme, there's no point in necessarily putting in more than 2%. Anything extra can go elsewhere.
I hope I'm wrong, and that Jet2 is helping us out with costs. But maybe they aren't, and this is just the normal way that things are done these cost-paring days.
Any comments and advice would be much appreciated by many of us, I'm sure. Thank you!
Join Date: Jun 2000
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0.72% Depending on Fund. You'll be lucky to find a lower charge and you can swap funds actively without incurring charges. However you should also take into account, that by paying a higher charge on a fund, you could end up with a better overall % return on that fund.
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Maat,
the answer is yes.
The death in service/life insurance is seperate from the Pension Scheme and I belive the group policy is at present through Legal and General. So don't pop your clogs just yet for the old dutch!
P.S You only have to ask SB or NL as they are there to help
the answer is yes.
The death in service/life insurance is seperate from the Pension Scheme and I belive the group policy is at present through Legal and General. So don't pop your clogs just yet for the old dutch!
P.S You only have to ask SB or NL as they are there to help
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Pension
I fail to see why you are asking these questions on this site on the new pension plan. There are many people in the company that you can officially ask any questions and get the correct and accurate answer rather than potential gossip and guessing answers that you may receive.
RvB
RvB
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I thought long and hard before making my original post. We are soon to have our own intranet forum, so I'm told, but in the mean time we need to share information. If as individuals we make our own enquiries, though very willing they will get completely snowed under at BOH. And there are, I'm sure, some experts who can shine even more light on this confusing subject.
I'm absolutely not trying to smear or complain. I just think it all needs to be out in the open - and this is the only forum available so far.
I'm absolutely not trying to smear or complain. I just think it all needs to be out in the open - and this is the only forum available so far.
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How can you afford to put anything into a pension if you work for Jetpoo ?
If you at all concerned about your financial future-leave and work for someone who will pay for you skills.
Just an idea
If you at all concerned about your financial future-leave and work for someone who will pay for you skills.
Just an idea
