Which One? Want To Transfer My Pension.

Mr_Vincent

Q1: What is the difference between a stakeholder pension and a personal pension?

Q2: Who are the best pension providers at the moment?

Q3: Am I better off with an ISA giving me £400 a year interest or a pension?
My instinct tells me to stick to my 30day cash ISA and not bother paying any more into a pension, both of which are the same - tax free savings in an investment instutition of your choice.

I am a 36 year old male with a stakeholder persion with Legal and General.
I had been paying in £100 a month then studied my figures.
Whilst not having made any losses, to be paying in £1200 a year and not make any extra back despite tax relief did rub me up the wrong side a little and I decided to stop contributing.

I wanted to transfer my funds to my company policy, Friends Provident.
They said no, go through an independent financial advisor first.
I can't be bothered with advisors as I am a very good decision maker.
I little research is easily understood by me where simplified and I don't do on-line unless all paperwork is done manually through post and I have somebody easily reachable by phone.

I am looking through this forum as I write.
Abbey are my next contact as I am learing on the side of transferring my stopped pension to a place where I do not need to contribute any more but still make more money than an ordinary savings account without going through shares and index linked things.

Advice requested please.

Thank you.

bryanb

Mr_Vincent wrote: »

Q1: What is the difference between a stakeholder pension and a personal pension?

Q2: Who are the best pension providers at the moment?


I can't be bothered with advisors as I am a very good decision maker.

Why are you asking here if you're such a good decision maker?

dunstonh

I can't be bothered with advisors as I am a very good decision maker.

Why are you asking the questions then?

to be paying in £1200 a year and not make any extra back despite tax relief did rub me up the wrong side a little and I decided to stop contributing.

Thats a very poor decision to make and it has cost you so far.

Q2: Who are the best pension providers at the moment?

There is no such thing as best pension providers. The best one will be the one that offers the investment options you want, at the lowest cost and has the features you require.

Given your lack of knowledge and understanding, you are probably better off with a stakeholder pension in a basic lifestyling fund. It wont be the best option by a long way but it will probably be the best option for you.

Mr_Vincent

Seeing an IFA to me is like seeing a solicitor.
I will only see a solicitor if I have to. Usually means paying them.
I am a !!!!!!!!!!, can't help it. Won't pay if I can get it for free.

Still the advice here has been warmly welcomed.
When in doubt always ask and that is what I have chosen to do here.

Nobody has answered Q1 though.
I doubt anybody would lean me towards a personal pension as opposed to a stakeholder one as that is what L&G leaned me to eye up more.

jem16

Mr_Vincent wrote: »

Seeing an IFA to me is like seeing a solicitor.
I will only see a solicitor if I have to. Usually means paying them.
I am a !!!!!!!!!!, can't help it. Won't pay if I can get it for free.

Well you can't expect people to work for nothing, can you?

You won't get the level of advice you need on here for free as one, it's not allowed and two, no-one knows your exact circumstances to give you correct advice.

Nobody has answered Q1 though.

Q1: What is the difference between a stakeholder pension and a personal pension?

A stakeholder has a defined charging structure and contains around 10 internal funds for you to choose. The funds will be fairly basic but fine for an inexperienced investor who wants to forget and leave.

A personal pension allows access to both internal and external funds and contain 100 - 1000 funds so plenty of scope to build a good portfolio according to your risk profile.

I doubt anybody would lean me towards a personal pension as opposed to a stakeholder one as that is what L&G leaned me to eye up more.

A personal pension is a much better option than a stakeholder and will give better performance provided you know what you are doing or you get an IFA to look after it for you.

Steven86

The main differences between a Stakeholder and a PP are really

- Charges are higher on a PP, as this is not regulated by the government
- Fund range better on a PP, Stakeholder usually offers around 20-25 funds max
- Lower minimum contributions for a Stakeholder

As the above states there is no such thing as the best pension provider, as the pension is effectively a savings wrapper, it is the funds you invest in that make and lose money!

If you really want to do it yourself, you would be better of talking to a guided sales team at someone at say Standard Life, they can ensure what you want and make sure you understand the risks.

To stop paying into a pension is a crime, effectively the govt are giving you £20 for every £100 you pay in.

dunstonh

Nobody has answered Q1 though.
I doubt anybody would lean me towards a personal pension as opposed to a stakeholder one as that is what L&G leaned me to eye up more.

Given your age, a personal pension is probably the cheaper option if you get the right one and PPs have better investment selection. However, you dont stick a learner driver in a formula 1 car. I have a Personal pension.

Won't pay if I can get it for free.

You are not getting it for free though.

You say you dont want to see an adviser as you dont want to pay for it yet you are corresponding with a tied rep at L&G which are more expensive than IFAs. An IFA taking FULL commission (let alone discounted or fee basis) could come in quite a bit cheaper than L&G stakeholders or personal pensions bought through L&G.

- Charges are higher on a PP, as this is not regulated by the government

That is not correct any more. Many modern pensions can come in significantly cheaper than stakeholder. The correct way of wording it is that stakeholders have a defined charging structure set by the Govt. It is a basic option offering basic features and a basic fund range. It cannot be called a cheaper option.

If you really want to do it yourself, you would be better of talking to a guided sales team at someone at say Standard Life, they can ensure what you want and make sure you understand the risks.

You dont work for Standard Life do you? Thats a pretty awful recommendation. Std Life sales reps sell products on full commission and the SL products aren't exactly very good. The stakeholder is basic but not bad but their personal pension is behind the times compared to other providers.

Mr_Vincent

Jem16,
I will be honest I had an idea of what I had planned for my future but it is true I probably do not know what I am doing being an inexperienced investor but at least I am saving.

Stevens86,
I did think about the governemt paying me the extra £20-£30 but when I saw no return, I thought better of it.
Harsh I know but the governemt will think of a way of reclaiming what they put into you in the first place.

To All,
I have listed MoneyWorld.com, Abbey and Standard Life as institutions to talk to.
To bring in the excuse I don't have time for visiting an IFA or pay for one will be frowned on.
Self Invested Pension Plans have caught my eye and whilst I have no immediate plans to be paying into a plan but to transfer my current lot somewhere else cos I can't cash it, I do plan to set up a direct debit with my 30 Day cash ISA where I have seen nothing less than interest growth over the years.

I probably am not wrong but I do listen to advice.
As the official retirement debate states
"Both ISAs and Pensions are tax-free wrappers you can use to invest or save money in to provide a return for your old age. "

Don't know what else to say here but I have been investigating.

Mr_Vincent

And Hargreaves Lansdown whom I have never heard of before.
Checking them out.
Are they reputable?

jem16

Mr_Vincent wrote: »

Jem16,
I will be honest I had an idea of what I had planned for my future but it is true I probably do not know what I am doing being an inexperienced investor but at least I am saving.

Saving is good but unfortunatley won't provide the kind of return you need to generate for retirement. Most savinsg barely keep up with inflation.

Self Invested Pension Plans have caught my eye and whilst I have no immediate plans to be paying into a plan but to transfer my current lot somewhere else cos I can't cash it,

A SIPP is for an experienced investor and probably the dearest option available.

I probably am not wrong but I do listen to advice.
As the official retirement debate states
"Both ISAs and Pensions are tax-free wrappers you can use to invest or save money in to provide a return for your old age. "

The use of ISAs for retirement purposes usually means S&S ISAs not cash ISAs.

To bring in the excuse I don't have time for visiting an IFA or pay for one will be frowned on.

You will need lots of time to research if you are going DIY. As to payment an IFA taking commission (therefore no cost to you) on a personal pension will still beat a SIPP which you are now looking at.

dunstonh

I have listed MoneyWorld.com, Abbey and Standard Life as institutions to talk to.
To bring in the excuse I don't have time for visiting an IFA or pay for one will be frowned on.

Std life and Abbey work on maximum commission basis. So, if you dont want to pay for one by fee (which could well be cheaper) then go with the commission basis. Even on max commission they will still be cheaper than abbey and std life or any other tied sales distribution.

Self Invested Pension Plans have caught my eye

The most expensive of the options when using funds. Designed for the more experienced and active investor.