How do you choose your personal pension brand?

nathaliatj

Hi all, just wondering what are the criteria do you use to choose the brand for your personal pension scheme?

I do not know much about pension and I was thinking to set up one. There are many brands out there that offer personal pension schemes, not sure which one to choose.

Thanks

dunstonh

just wondering what are the criteria do you use to choose the brand for your personal pension scheme?

Timescale,
fund size/contribution size
types of investments required and availability of those
features and options wanted

In your case you will also have to factor in what distribution channel you want to use.

Andy7856

First of all, does your employer offer any kind of pension scheme? You may find that they offer one and also contribute to it.

nathaliatj

My partner and I have pension plan with our workplace. However, we were thinking to set up our own personal pension plan. We have no clue how to choose the best pension plan for us. Some people say that we can do it ourselves as we will be in control. Some people say we should consider IFAs. Doing it ourselves seem very good but we dont have any idea which brand should we choose or how should we choose them. Some people said using IFAs might mean biased opinions. So thats why I was just wondering how did people know that certain pension plan/brand is the best for them. Especially if the outcome can only be evaluated many years later. Thank you for sharing.

edinburgher

My partner and I have pension plan with our workplace. However, we were thinking to set up our own personal pension plan

Why?

Not saying that there's anything wrong with making extra provision for your retirement beyond your employer pension/any state pension, but have you explored the options with your current pension provider/s?

For example - if you're current on final salary/defined benefit pensions, can you buy added pension? If you're on defined contribution pensions, are you paying in as much as you can to get the full employer match etc.?

It might also be worth looking at investing in ISAs as an alternative, as both pensions and ISAs have tax benefits to use.

Other than that, dunstonh pretty much covers the topic.

dunstonh

Some people say we should consider IFAs. Doing it ourselves seem very good but we dont have any idea which brand should we choose or how should we choose them.

Brand is largely irrelevant. Its how you invest that matters.

Some people said using IFAs might mean biased opinions.

FAs are biased as they represent one or a limited panel of providers. IFAs are whole of market and unbiased. Sure we have opinions but those opinions have to be justified. Investing is all about opinion.

So thats why I was just wondering how did people know that certain pension plan/brand is the best for them.

By research on what they want and what is best for them.

This is no different to getting your car serviced, building a wall, decorating your house, getting your boiler serviced/repaired etc. If you can DIY and do a good job then it can be the best way to do it. If you dont know what you are doing and you DIY then you can end up making a right pigs ear of it. In which case using an IFA makes sense.

nathaliatj

Thank yor for the advice. I agree with you that if we dont have a clue what we're doing we better ask the expert (IFAs). I was reading a book called Pension handbook: a complete guide to saving your retirement (it's almost like a pension book for dummies). It advices that if you are not investment enthusiasts it might be better to have simple pension plans with different providers or use IFAs. That was why I was wondering whether there is any criteria in choosing the right brand. Let say may be certain brand is known to be more trustworthy than others or provide better rates than others. But from what you are saying it might not be the case with pension. Still interested with DIY but from what you say it sounds 'tricky' too. I don't understand why those pension providers spend money on adverts if the brand doesnt really matter.

dunstonh

I don't understand why those pension providers spend money on adverts if the brand doesnt really matter.

Brand matters to them and they want you to place your money with them. They are targeting the DIY individual who doesnt understand the subject. They are not targeting the knowledgeable investor or IFA.

It advices that if you are not investment enthusiasts it might be better to have simple pension plans with different providers or use IFAs

If you are going to be a lazy investor or you dont know what you are doing then a simple option is often best. It will never give the best return but it wont give the worst. There is no need to have multiple providers though with modern unit linked investments.

Loughton_Monkey

It fails my understanding why you keep on using the word 'Brand'.

I don't know which "brand" of electricity you use, but it all comes from the National Grid doesn't it? In the case of electricity, then they do happen to charge different prices depending upon who you are with. So it's obvious to go with whoever charges the least. Who cares whether that's Eon, or N-Power, or Scottish Power?

You want to invest in a Jupiter Asian fund? Then go with whoever has the lower charges.

Get real!

nathaliatj

Well Loughton, I had quite bad experience when I was with British Gas and my partner had very bad experience with nPower. So, when we moved to our house we avoided those two brands. And reading the news about mis-selling pensions and some people totally lost their pensions with dodgy providers (not even registered with FSA), as newbies we would worry about choosing which pension providers or brands are trustworthy and would not bring us any hassle. Especially, if we would only experience the benefits 40 years later. If the charges are slightly higher but the companies are competent (based on what our IFAs say and other people say), we probably would not mind to pay slightly higher charges but we know that our pensions are save. That's our opinion. That's why we were wondering whether others would have similar view :-)

dzug1

nathaliatj wrote: »

. Let say may be certain brand is known to be more trustworthy than others or provide better rates than others.

My partner and I have pension plan with our workplace

What is true now may not be true in 40 years time

What sort of plan is it you have with your workplace? It could be that opting out of that would be sheer folly, depending on what it is.