Pension MoneySaving: Buy a different way to boost returns Article Discussion Area

Paul_Herring

In addition, directors/anyone who want to put in more than the £3,600 annual limit permitted by NEST will probably be using another vehicle anyway.

Rob82

Thank you for your advice.

Yes sorry I did not want to explain the details of it as didn't assume people understood the difference between self employed and employed by a ltd company.

Thanks I was aware of the new gov scheme by 2012.

What I am confused about is who to go with for a pension or will this government scheme be ok? Is that going to replace the other companies offering pensions? What makes it worse/better ?

Thanks!
Rob

dunstonh

What I am confused about is who to go with for a pension or will this government scheme be ok?

NEST (the Govt introduced scheme) is not going to be the cheapest option and its very limited in what it can offer. Its really aiming for the bottom end of the market as its expected most large employers, directors of companies and more sophisticated individuals will pick their own providers.

is that going to replace the other companies offering pensions?

No. Its most likely to naturally replace stakeholder (which as a product will effectively be obsolete post 2012).

What makes it worse/better ?

Limited investment choice, not cheap (for what you get), lacking features that some will want.

Rob82

Thanks - do you have any companies you could recommend me to start looking at?

Cheers
Rob

chriscdr

Sorry to have to post here guys, im just totally confused by all this pension malarkey.

Ive been looking around for a simple to use pension to make sure im covered as im 28 and i haven't got a pension at all.

Ive found the 'virgin money' pension which i think looks pretty good but it just seems too easy? if i put £80/month in then it will get topped up to £100 etc which to me seems reasonable, but i really dont know if this is good or not.

Do you think this is ok or should i go somewhere else? I cant really seem to find many other options that are easily explained.

thanks guys

dunstonh

Ive found the 'virgin money' pension which i think looks pretty good but it just seems too easy? if i put £80/month in then it will get topped up to £100 etc which to me seems reasonable, but i really dont know if this is good or not.

Its a simple contract but its one of the worst stakeholder pensions you can buy. Virgin are the "Apple" of financial services. They dont have to offer decent products as people buy the brand.

An IFA can beat Virgin hands down on cost, funds and features.

Linton

chriscdr wrote: »

Sorry to have to post here guys, im just totally confused by all this pension malarkey.

Ive been looking around for a simple to use pension to make sure im covered as im 28 and i haven't got a pension at all.

Ive found the 'virgin money' pension which i think looks pretty good but it just seems too easy? if i put £80/month in then it will get topped up to £100 etc which to me seems reasonable, but i really dont know if this is good or not.

Do you think this is ok or should i go somewhere else? I cant really seem to find many other options that are easily explained.

thanks guys

This is the same for all private pensions. It's just the effect of pension payments being tax free.

Do you have no opportunity for a company pension? - these are normally cheaper and usually include an employer contribution.

Suggest you consider putting significantly more than £80/month into a pension, and if not into a pension into other long term savings.

I would also suggest you talk to an IFA.

chriscdr

Linton wrote: »

This is the same for all private pensions. It's just the effect of pension payments being tax free.

Do you have no opportunity for a company pension? - these are normally cheaper and usually include an employer contribution.

Suggest you consider putting significantly more than £80/month into a pension, and if not into a pension into other long term savings.

I would also suggest you talk to an IFA.

Thanks guys, the company doesnt advise we go into its pension scheme as they dont add any contributions etc, and nobody has ever gone into it anyway.

the £80 was just the example given by Virgin, i'd most likely put at least £100 and increase it year on year.

I think i'm going to need an IFA but again, its all new to me so i dont know who to trust or how much they cost etc. So stressful!!!

dunstonh

I think i'm going to need an IFA but again, its all new to me so i dont know who to trust or how much they cost etc. So stressful!!!

IFAs handle over 65% of the regulated business but have under 2% of the complaints at the FOS. Statistically, you would be very unlucky to find a bad one.

As for cost, the Virgin stakeholder costs you more than it would if you used an IFA on commission basis, let alone fee basis.

xigreek

hi

I was recently made redundant from my last job where I was part of Nuvos, the civil service pension scheme.

the DWP have written me saying that because I worked for longer than 3 month but less than 2 years I need to transfer my contributions and have 2 options:
1) will simply refund my contributions to my bank account (circa £1K)
2) will transfer my contributions and those of my employer (circa £8k) but needs to be transferred into a new pension.

I haven't yet found a new employer and have no other pensions - any advice as to which pension to start and how?

Thanks

xigreek.