Would like to start a Pension, advice most welcome!

Damian123

Hi,

Im 28 in full time employment and would like to start a Pension, I can afford about £100 a month.

Is this enough?

What are my options?

Advice would be most appreciated...it's darn confusing!

Mortgage_Help_4

Unfortunately forums can only give information and not advice or they can offer advice with the disclaimer that it is not advice. Based on the latter (confused already - sorry): -

A pensions adviser will advise you first and foremost to check to see if your employer runs a pension scheme (probably a Stakeholder Pension Sheme). If so you can ask your employer (payroll or pensions dept) for the Pensions Explanatory Booklet which will explain the pension with its features and benefits and criteria and contribution levels etc. In most cases you are better joining your company pension scheme and for the first year pay the recommended contribution level each month which is standard for the scheme i.e it maybe 2.5% or 3% of your gross monthly salary. Most employers match your monthly contribution levels. If your employer does not provide a pension scheme then you need to look at a personal pension and seek independent pension advice. There are lots of options with personal pensions and after looking at your budget and risk profile a suitable pension will be recommended to you.

I hope this helps and best of luck.

Damian123

Thanks for your help Mortgage Help.

I currently work for a very small company with no Pension Scheme.


Could someone recommend a good Pension Provider or a place where I may get good Independent Pension Advice?


Thanks

dunstonh

Could someone recommend a good Pension Provider or a place where I may get good Independent Pension Advice?

£100pm puts you in to the category of having personal pensions available as well as stakeholder. Depending on your age, many personal pensions can be cheaper than stakeholder and offer a wider fund range. Which is best will depend on a range of circumstances which we are not going to be able to tell here.

You get get independent pension advice from a local IFA. look up https://www.unbiased.co.uk . In the options to search, undo the default filter option to only show advertising IFAs (those that pay to be on the site. Most Dont)

tawl_2

see if the following helps:

http://www.moneymadeclear.fsa.gov.uk/guides/retirement/saving_for_retirement.html#afford

explains things quite clearly

thursday

I had a same dilemma last year and ended up choosing SSIP with Hargreaves and Lansdown, have a look at their website...

Damian123

Thanks all, you have been a lot of help!

Just a few questions though to which i am having problems finding a clear answer,
what is the difference between a Private Pension and a Stakeholder Pension?

Is one more risky than the other, can I invest in both at the same time?

How does it work?


Thanks all

tawl_2

both effectively the same but stakeholder pension has some minimum requirements set out by the government.

http://www.moneymadeclear.fsa.gov.uk/products/pensions/types/products_stakeholder_pensions.html

have you checked if your employer has a pensions plan in place?

jem16

Damian123 wrote: »

what is the difference between a Private Pension and a Stakeholder Pension?

A stakeholder has a standard annual management charge of 1% whilst a personal pension can have a dearer amc but can also be cheaper depending on how it's set up.

A stakeholder uses internal funds from the pension provider and has a limited number of funds. A personal pension has both internal and external ( funds from different providers ) funds and has a greater and usually better choice.

Is one more risky than the other,

Both are only tax wrappers and don't carry a risk. It's the investments that you put inside that counts and there are usually different funds with different risk ratings available within each.

can I invest in both at the same time?

You can but there would be little point.

Damian123

Thanks guys, that was a lot of help!!!!