Friends First With Profits Pension

I have 13,562.37 accumulation Units in a Friends First With Profit Fund

The last annual statement from Friends First ( Friends Provident) dated February of this year say the Current Fund Value of my Policy is €71,378:75 ( funds invested in With Profit. The regular bonus rate for the With Profit Fund is 4% p.a. for the current year but of course values are not guaranteed as these can rise or fall.

What I would like to know is should I leave this investment where it is or should I consider changing same.

I am 57 years of age and would anticipate not having to touch this policy until my 60th birthday or perhaps 65th if I am lucky.

Whatwould you advise I do?

Hi AB

You can expect higher returns on a 100% equity fund than on a with profits fund, so in general, you are better off in an equity fund.

However, if you need this money in three years time, then it might drop by 20% in an equity fund. If you can handle the downside, then I would consider switching.

I don't know the fund. Are there any charges for cancelling before retirement? Are there any benefits in staying? For example, Do you get a termination bonus on retirement?

Don't switch into a fund which has initial charges or high annual management charges. You might be able to switch into a Friends First equity fund at no cost.

Brendan