Stakeholder Vs Personal Pension plan

kharyss

Hi all

Bit of advice from those in the know would be very appreciated!

My career plan basically involves changing employers and sectors every couple of years to gain maximum experience before eventually going self employed (probably) and doing consultancy.

I always join the Company pension scheme where it's offered, but as a consequence I've collected a variety of pension plans with very little in each of them. I know that I'm nowhere near where I should be pension pot wise given that I'm 34 therefore I'd like to set up my own plan and keep it going throughout.

What I would need is the flexibility to adjust contributions, so if the Company provides I can join that and pay a nominal contribution to my own, and if not, increase my own accordingly. At the moment I'm not in a scheme so could put in around £350-£400 per month.

Any suggestions, given my age and need for flexibility, on whether a stakeholder or personal plan is better? Did read something about "mono charge" personal plans as an option but haven't a clue what that means!

Thanks loads!
x

dunstonh

on whether a stakeholder or personal plan is better?

Personal pensions can be cheaper and more expensive than stakeholder depending on the type but all personal pensions offer greater investment choice. Stakeholders are guaranteed to offer flexibility of payment that may not be available on all personal pensions.

Did read something about "mono charge" personal plans as an option but haven't a clue what that means!

mono charge means one charge. An annual management charge. Multi-charge means the charges may be taken in a different way by different methods. Often that means getting the cost of setting up out of the way early on and then benefiting from a lower annual charge. More expensive in the short term but cheaper in the long term.

There is no one best pension. Each has its own target markets and will be priced and accordingly. Some will have features and options you may not want and dont need to pay for, others will not match your payment requirements or may not offer your chosen investments. You will need to research or get an IFA to research for you.