Which personal pension?

Loz10

Hi,

I have recently started a new job and they do not offer a pension. I would like to open personal/stakeholder pension. Does anyone know of a good personal pension provider? I've seen Virgin offer a stakeholder pension but have read mixed reviews about this..

Thanks!

Loz

dunstonh

Does anyone know of a good personal pension provider?

Yes. However, whether it is right good for you or not is hard to day.

I've seen Virgin offer a stakeholder pension but have read mixed reviews about this..

Pretty much one of the worst stakeholder pensions going. It only gets awards from media outlets it advertises with or customers that have it who dont realise how poor it is but vote for it as they have it.

There is no one best pension for everyone. You can limit it a bit. Stakeholder pensions are for people that dont care about investments and want simple before quality and are looking at small contributions or very short timescales. Personal pensions are for larger contributions, can be cheaper or more expensive than a stakeholder and allow a much greater investment choice (and often increased features). A SIPP is for your experienced investor looking for near unlimited investment choice.

atush

The right pension for you will depend on how much you want to contribute per month (very low would meana stakeholder, higher might mean a PP is best), and what funds you want to invest it in.

There is the DIY approach incl lots of research on your part, or you can contact an IFA who will do it for you at a price.

Loz10

Great thanks for your replies. I am 23 so have a few years to go before retirement! I would probably be looking to pay in £150 a month. My uncle who is in the financial industry has said its best to go with equity funds. Based on your advice perhaps a stakeholder pension is best suited to me..

dunstonh

Based on your advice perhaps a stakeholder pension is best suited to me..

Over £100pm and personal pensions come into play.

Loz10

Ok thank you. I will have a search around to see what the best personal pension for me will be.

JoeCrystal

I think in your case, it may be worth visiting an IFA to discuss about personal pensions. Here is the Link to Unbiased website to help one in your local area.

gadgetmind

Loz10 wrote: »

Great thanks for your replies. I am 23 so have a few years to go before retirement!

At that age, you can afford to hold a high percentage of equities but only if you won't get cold feet *when* the value of your pension drops a *lot* between statements. You need to realise that the drops work for you as the money you put in each month buys more of those equities.

Also, given you'll be in this for the long haul, setting up a low-fee personal pension with an IFA can be cheaper than going direct with a stakeholder.

Maybe go to the Cavendish Online web site, look at the up front fee of £35, look at the Annual Management Charge of (say) an Aviva Stakeholder (0.55%), print off some pages, and tell the IFA you want a personal pension that can beat that stakeholder.

I will be *very* interested to see what an IFA says. I'm told they can beat such deals but everyone who posts here who's seen an IFA seems to get quoted higher AMCs *and* higher fees.

But no matter what you do, do something!

dunstonh

I will be *very* interested to see what an IFA says. I'm told they can beat such deals but everyone who posts here who's seen an IFA seems to get quoted higher AMCs *and* higher fees.

Most IFAs (that are still left and intend to be there post RDR) are focusing more on wealth clients. Their business models are often based on that as is their pricing. There are lesser numbers that will deal with the clients who dont really want an IFA service. However, compare that Aviva at 055% and £35 set up with say £500 set up and 0.2% p.a. More expensive in year one but cheaper annually thereafter. the breakeven point will depend on amount being paid in.

Loughton_Monkey

If you want a good flight to USA, then Virgin may well be a good provider.

Don't ask Aviva, Standard Life, or Prudential to fly you to USA because they will make a hash of it. Same as buying a financial product from Virgin.

gadgetmind

dunstonh wrote: »

However, compare that Aviva at 055% and £35 set up with say £500 set up and 0.2% p.a. More expensive in year one but cheaper annually thereafter. the breakeven point will depend on amount being paid in.

Can we also maybe compare it to a unicorn on a stick? Sorry to be cynical, but if IFAs are now on the hunt for those with more money than sense, how does your man in the street access the pension you describe?