A young relative of mine has entered the world of work. She has been automatically enrolled in one of the new workplace pensions.
She asked me a little while ago whether she should continue with it or opt out, as I have written previously. I said that it depended. If her scheme, which is run by Aviva, forced her to stay with the default investment options, she might seriously consider opting out. The default option mostly consists of bonds and other investments that I think could do quite badly over the next five years.
Last weekend, she showed me the letters she had received from Aviva. I looked through page after page, trying to work out whether or not she was allowed to avoid the default option. Eventually, tucked away in a paragraph nowhere near the front, I found some words that implied that, yes, she could choose to put her pension contributions in specific funds. Hurrah!
We went on…
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