Best Pension Options

Jandan

Am due to start with a new company shortly who do not offer a company pension scheme. Company will be putting 5% of salary (circa 70k) into scheme of my choice and I intend to contribute about 10%.
Looking for the most tax efficient way of investing this money. Pension needs to be transferable and does not necessarily need to include death or widows benefit as think it may work out cheaper to look after these separately (am I right?)
Any advice or recommendations would be much appreciated.

dunstonh

Looking for the most tax efficient way of investing this money.

Thats all pensions then.

Pension needs to be transferable

Thats all pensions.

and does not necessarily need to include death or widows benefit as think it may work out cheaper to look after these separately (am I right?)

Thats all pensions. Pension term assurance is the only bit with extra death benefit and you wont get that unless you ask for it.

Any advice or recommendations would be much appreciated

All pensions should fit your requirement.

As to which would be best, it would depend on where you want to invest, how you want it spread, if you want waiver of premium, how old you and how long you have to retirement and what your investment experience is. I think thats a fair start.

EdInvestor

Start with what you want to invest the money in - shares, funds (which ones), other?

Then look for a wrapper (that's all a pension is )to put round these investments to get the associated tax perk.

You want the one which enables you to invest as you see fit at the lowest cost, with the greatest flexibility and the best customer service.

Pal

Given your high earnings, you really should ask your company to implement a salary sacrifice arrangement.

Instead of you paying 10% while they pay 5%, you reduce your salary by the 10% and get them to pay the full 15% (of £70k) into your pension, plus the national insurance saving on the 10% that they would otherwise be paying i.e. another 1.28% into your pension scheme. It doesn't cost you a penny, and in addition you also save 1% NICs on the 10% as well.