Transferring Pension

PennyCrayon_2

Many thanks. I will give them a call and take it from there

dunstonh

Execution only means you pick the type of pension, provider and the investments. If you can do all that then Cavendish are fine as they offer a limited panel of providers on their execution only service.

If you want advice, then you should expect to pay for it. As it happens, that would probably still be cheaper than going direct to L&G. So, you need to decide if you need advice or not.

PennyCrayon_2

Hi,

I contacted cavendish and it's seems really straightforward.However, they do not offer advice on which pension to go for: L&G, AViva, Scottish Widow etc.

Any advice on how to choose the best one?

jem16

PennyCrayon wrote: »

Hi,

I contacted cavendish and it's seems really straightforward.However, they do not offer advice on which pension to go for: L&G, AViva, Scottish Widow etc.

Of course they don't - that's why you get a discount for an execution only service.

Any advice on how to choose the best one?

You need to look at the funds that each provider offers and see if they have the funds that you want to invest in. To choose the funds you have to be prepared to research what your strategy is going to be and then pick the funds that will allow you to follow that.

If you are not able to do this by yourself then you need to find an IFA who will do this for you rather than an execution only service.

PennyCrayon_2

Many thanks. I am currently in the process of filling out the forms.

However, i am a little confused about the rate at which my contributions will be automatically increased each year.

How does this work with a personal pension when you can start and stop it whenever you like?

Also what is the best option a fixed percentage,the average earnings index or the retail prices index?

I don't understand what these are. I do know that it is wise to increase contributions yearly to get the most out of it.

dunstonh

ow does this work with a personal pension when you can start and stop it whenever you like?

Some you can, some you cant.

Also what is the best option a fixed percentage,the average earnings index or the retail prices index?

Depends on your objectives, current funding levels and future affordability and opinion.

chesky369

Penny, it seems to me that you're a complete newcomer to pensions. I think at some point in the future, you may look back and realise you didn't necessarily make the best possible choice - why should you, you're not a professional. I promise you, most IFAs are worth their weight in gold, mine saved me literally hundreds of pounds. A little expenditure now will probably pay for itself several times over.

You have to expect to pay for this advice - after all, I bet you don't take a pair of scissors to your own hair, do you?

PennyCrayon_2

I might have to visit an IFA as Cavendish have ust informed me that they no longer provide a personal pension 2000 and that i must choose either a stakeholder or portfolio plus.

EdInvestor

I see they have the Scottish Widows personal pension

http://www.cavendishonline.co.uk/pensions/personal.php

What's wrong with that?

PennyCrayon_2

There doesn't appear to be anything wrong with it: it offers the same fund choices and is flexible.

However, the gap between a personal pension and a stakeholder is v. narrow. There doesn't appear to be much difference.

How do i know i am making the best choice?

Also, can someone explain the charges to me. Does this mean they take out a percentage from what i have put into my pension or do they charge me directly?