M&S Personal Pension

duncansby

Hi - my wife has been saving with M&S pension for a few years now. I've noticed that they do not mention the pension in the M&S money website, which makes me wonder if they still offer it. I was also wondering if it would be worthwhile switching it to a stakeholder pension using the Cavendish website.

Thanks

dunstonh

You cannot switch the pension using Cavendish. You would have to do a pension transfer choosing a new provider.

M&S pension is rubbish. It offers absolutely nothing and is no cheaper than an adviser arranged plan. The fund range is limited as well (but then most stakeholder are).

duncansby

Hi - if we are thinking of taking out a stakeholder pension, is there any advantage in applying through Cavendish online in terms of the commission being re-invested, or do stakeholder plans carry no commision beyond the annual management charge.

Thnaks

dunstonh

Depends on whether your provider of choice pays commission or not. M&S or Virgin, for example, dont pay commission but their charges are the same as stakeholder pensions that do. There are also pensions that pay a reasonable commission that have lower charges than a DIY stakeholder through Cavendish.

Whilst DIY is fine for people that know what they are doing, I do have to question whether it is right for you. You chose M&S before (which was a bad move) and you are focusing on stakeholder pensions (which could be another bad move). You may save a small amount on your charges by ruling out an adviser (or save nothing with some providers) but if your choice leads to a poor quality investment, then it has cost you more than you have saved.

Commission on pensions is quite low so the savings are not going to be great.

duncansby

Thanks - I think it might be worth a quick visit to an IFA before we make any more moves!