IN THE BACK
( Mid ) life savers
Given my brief for Trustnet Magazine is to write about platforms and pensions , this month I thought I ’ d look at which platforms are best for managing your retirement savings , in terms of features and costs . Consequently , I have stepped into the shoes of someone aged 45 ( when a warning light goes off in your head , alerting you to the fact that you are closer to your free bus pass than freshers ’ week ). Much to my frustration , once people tend to settle into a platform and get comfortable and familiar with it , the chances of changing to another one are remote . I recently calculated that if everybody moved from the most popular ( and usually the most expensive ) platform to a low-cost alternative , those 1.7 million people with an average of £ 77,000 per account would save more than £ 400m each year . The big caveat is that we ’ re dealing with averages , and each person ’ s portfolio value and composition is different , but it serves to illustrate the importance of keeping an eye on charges . If you ’ re happy paying a premium for a high-quality service , then that ’ s fine , but I would guess that most DIY investment platforms offer similar standards in this regard . That early tangent into charges reminds me there are many qualities other than price that I need to consider . These are :
Retirement planners and tools Retirement-focused investments / portfolios Supporting content Ease of understanding Transfers-in and ease of aggregating all your pensions Drawdown and the ability to take your money out in a sensible manner
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