Transferring Pension

dunstonh

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

There isnt meant to be. Scot Wid also now have a third option called their retirement account and that is fund supermarket style personal pension that takes the fund range even higher but also includes all the stakeholder funds and insured funds. Given the choice, SW would kill off the stakeholder as its nearly pointless given that the personal pension does the same but with more 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?

Depends on the contract and the charges options available. Some can take it out of the contribution but less annually. Some take nothing from the contribution but more annually.

How do i know i am making the best choice?

Research and analysis of all the options available.

jem16

PennyCrayon wrote: »

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

What gap do you mean? Cost, choice of funds or what?

The Scottish Widows personal pension offers more than 100 funds - more than enough to pick a fully diversified portfolio from.

How do i know i am making the best choice?

You do lots of research by yourself or you employ an IFA.

With respect as you seem to be asking fairly basic questions an IFA might be your best choice. Far better to pay for advice than make a pig's ear of doing it yourself.

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?

The charges are taken by cashing in some of your units each month.