Use of old pension or brand new one?

TCA

Hi

I am currently self employed (no pension) and looking to reduce my higher rate tax liability for this year (and invest some money) and understand that making a pension contribution is about the best way to do this. (?) Any other ideas are welcomed.

If I choose to make a pension payment, I can either set up a brand new pension or make use of two old pensions I have:

1) An old Commercial Union pension (now run by Norwich Union as Prime Managed Fund), which was for my contracted out NI and has about £13k in it. I have never contributed anything personally. The annual charges are 1% and performance has been 10%,20% and 10% in the last 3 years. The investment mix is over 50% UK equities.

2) A former works pension run by Standard Life with monies invested in Fidelity's UK,European and American funds. Pot of around £10k split between the 3. I have no recent info on performance or charges.


If I'm looking for a bog standard (low risk) retirement investment vehicle, would anyone recommend either of the above or would I be better starting a brand new one. And if the latter, which?

Any help appreciated.

TCA

TCA

Can anyone help please?

I'm not after definitive investment advice, just a steer as to whether there are any benefits to using an existing pension or whether a brand new personal pension or stakeholder pension would be more beneficial?


Thanks.

TCA

EdInvestor

If you're looking for something bog standard, they will both probably do. But why would you be looking for that? :huh:

TCA

Thanks for the reply.

I don't know much about pensions so have no clear idea of the different options open to me, other than personal pension versus stakeholder and that different pensions invest in different funds. But if this is to form my main pension I would have thought that I should be investing in something with relatively low risk along these lines, with a large UK equity/fixed interest/cash holding - at least that seems to be what most of these Managed Funds do. Obviously nothing is guaranteed but they would appear less "risky" than a pension invested in Far East funds for example. I don't know, which is why I asked.

My real question was whether starting a new pension (of whichever description) would have any benefits over using an existing one - re set up fees, initial or ongoing charges,commissions payable etc....

dipsomaniac

you don't say what your age is, when you want to retire and how much you are thinking of contributing?

you also need to find out a little more about the pensions you have, what type of scheme, whether you are able to contribute, funds available, charges etc.

keep it simple, if you can contribute to the std life scheme with access to all of their funds i would look at doing that.

TCA

Thanks dipso. I am 38 and probably looking at normal retirement age. For the moment I am only thinking of a one-off contribution of £10-£15k to gain some tax benefits this year.

Looking to keep it simple as you suggested which is why I thought of contributing to one of my existing schemes (which I can).

The Standard Life scheme allows contributions to any number of different Fidelity Funds (only Fidelity) - my current pot is split between their main UK, USA and Europe funds - according to a selection I made when working for my previous employer. I don't know the charges but will find out.

The CU fund is as stated in the opening post. Annual charge of 1%.

Looks like I need more info about each plan and maybe the help of a financial advisor. Thanks for your reply.

TCA