O&M/Selectapension - 'Additional Growth Required' figures
Hello, I’d be interested to get some feedback on how people use the AGR figure from O&M and SelectaPension Pension Switching Reports.
I’ve got no issue recommending a more expensive replacement, as long as we have the justification (i.e. needs access to drawdown, wants access to ethical funds etc.) but there must be a point where you draw the line, or at least start questioning the viability of a transfer.
When do alarm bells start ringing for you? As soon as an additional return is required? Greater than 1%? Greater than 2%? I guess client’s attitude to risk would need to be factored in too. I’m thinking of creating a type of matrix, although not really sure where to start so I’m currently at brainstorming stage!