Stakeholder Pension

mandee

I recently switched jobs and now working with a small company (3 employees).
My new employer will be setting up a new company pension plan for me.
Initially my employer will be contributing £100/monthly to a plan of my choice.

I do not have strong investment knowledge and would be unlikely to make use of the varying options of a SIPP plan.
I am looking for a stable plan that has very low fees and I believe a STAKEHOLDER PENSION may be my best choice.

Would you agree? Any thoughts out there? Does anyone know of any pension plans/companies I should consider exploring?

I am in my forties (with only large ISA savings) if that makes any difference. Any advice or experience is gratefully appreciated! :beer:

dunstonh

I do not have strong investment knowledge and would be unlikely to make use of the varying options of a SIPP plan.

LOL - that almost reads like a paragraph from my suitability reports

I am looking for a stable plan that has very low fees and I believe a STAKEHOLDER PENSION may be my best choice.

Why?

A stakeholder pension is flexible but given your age a and the level of contribution, a personal pension is likely to be cheaper whilst offering the same investment options as the stakeholder (you dont need to use the extra investment options a stakeholder will provide).

mandee

Hi and thanks for your response!

I have to admit I didn't consider the "personal pension" because the term "personal" seem to elude to a personal contribution.
I will not be making any joint contributions and only my employer will be making the contribution.

Would a "personal pension" still be suitable for consideration under company contribution?

Annisele

The FSA's Money Made Clear website gives some basic information about personal pensions and group personal pensions.

dunstonh

Personal pensions, stakeholders and SIPPs all have the same contribution rules and will take employer or personal contributions.

Stakeholders are the simple option but not necessarily the cheapest option or the best. Personal pensions will mostly offer the same stakeholder funds but may be cheaper or more expensive. They will offer more funds than a stakeholder but you dont have to use them.