Where to start with private pension

Catesar · 17 October 2016 at 2:04PM

I feel the more I look into pensions the more confused I become... I have so far sought advice from 2 advisers, 1 from a super whizzy sounding firm, also from reading up on here, they seem to be super expensive in fees etc and Ive also spoken with a local smaller firm who I have dealt with for years for my mortgage and have a great relationship with. I am torn between conflicting advice from family and friends, from - "the more expensive company may be that, but they perform well and have access to better investments"? to.... "the smaller company will play it safer and may not get as good a plan back" etc.... If I'm honest its all beginning to terrify me and causing me to keep delaying getting it all started.... I suppose I'm after any kind of tips of how to move forward or experience from anyone, is it indeed best to sort it all through an adviser etc? thanks for any help...

xylophone · 17 October 2016 at 2:10PM

Are you employed?

Catesar · 17 October 2016 at 2:13PM

yes, self employed ltd company. we would be setting pensions up for my husband and myself either as 2 plans, or 1 joint, whichever is best (again was advised the opposite by both advisers)

Linton · 17 October 2016 at 2:18PM

Catesar wrote: »

yes, self employed ltd company. we would be setting pensions up for my husband and myself either as 2 plans, or 1 joint, whichever is best (again was advised the opposite by both advisers)

You cant have a joint pension - pensions are in a single name.

Catesar · 17 October 2016 at 2:22PM

Sorry, not a joint pension - 1 pension for us both, as in 1 plan set up in my name. This was advised by the 1st firm, however as much as we obviously wouldn't like to imagine it could ever happen, realistically people can split up so sure this method would present problems and costs should it happen.

dunstonh · 17 October 2016 at 3:12PM

"the more expensive company may be that, but they perform well and have access to better investments"?

IFAs have access to the whole of market. So, if the adviser is an IFA, that statement only makes sense if the other is a restricted adviser (and pretty restricted at that as many whole of market restricted advisers will have access to most UT/OEIC funds and mainstream options). Is the smaller firm restricted or independent?

If you are not a sophisticated investor then you wont need all the bells and whistles. Simple options built with a simple structure and process are usually best.

Retirement planning should be viewed jointly. Even though you cant have a joint pension. i.e. one each. You do not want to be top heavy by having too much in one name and not enough in the other.

xylophone · 17 October 2016 at 3:15PM

Have you both obtained a new state pension statement?

You are both employees of your limited company?

http://www.hl.co.uk/pensions/sipp/how-much-can-i-invest/employer-contributions

You should each have your own pension.

http://help.thepensionsregulator.gov.uk/faq/director/family-business-auto-enrol

Catesar · 17 October 2016 at 4:02PM

Thanks dunstonh, I'm fairly sure the smaller is also independent, will look into further to make sure, but your explanation makes sense to me too, we're certainly not sophisticated investors and I really feel more "comfortable" moving forward with the advisor I already know and have experience with (if he is indeed independent)
Yes, I feel we'd be better to do everything together with amounts etc, just dividing what we pay in equally.
Xylophone yes, we're both employees, our ae isn't until end of next year, but we were looking to set this up separately first for us. I'll have a look at your links attached also though, thank you for those.

coyrls · 17 October 2016 at 5:34PM

Catesar wrote: »

Thanks dunstonh, I'm fairly sure the smaller is also independent, will look into further to make sure, but your explanation makes sense to me too, we're certainly not sophisticated investors and I really feel more "comfortable" moving forward with the advisor I already know and have experience with (if he is indeed independent)
Yes, I feel we'd be better to do everything together with amounts etc, just dividing what we pay in equally.
Xylophone yes, we're both employees, our ae isn't until end of next year, but we were looking to set this up separately first for us. I'll have a look at your links attached also though, thank you for those.

I am speculating that, from your description, the first company you refer to is St James Place, in which case they are not IFAs. As you suggest you will also need to check whether your local advisors are independent, they may not be if their primary business is as a mortgage broker. You have a very specific need and I think you need to cast your net a bit wider to find a suitable IFA that is used to dealing with pensions for the self-employed.

Where to start with private pension

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