Private Pensions - the basics

Sankesh

Hello all,

Some very basic questions as I don't know a lot about it:

My current situation: I have a company pension where the company makes contributions depending on how much I put in. However, I have changed companies a few times and will continue to do because of the industry I am in. This means, I already have 3 different pensions - 2 paused, one ongoing.

So I am considering starting a private pension, for consistency. Now, my questions is: how do I choose a private pension? What are the differentiators between the providers?
For example: when buying car insurance I look for the legal cover or replacement car, excess etc.
But I am not sure what to look for when choosing a private pension

Any help on this would be great!

Thanks

ermine

I have a company pension where the company makes contributions depending on how much I put in

You might first want to establish if the company match would still apply to pension you arrange yourself. It's unlikely. And of course if it's a final salary or even CARE pension linked to salary then do nothing to change what you get, other than increase it

You can transfer pensions after you've ceased working for a company, though there are often costs associated with that. But first see if your company will pay into anything other than the pension they determine. Free money is always good, even if you have to put up with some inconvenience

dunstonh

how do I choose a private pension? What are the differentiators between the providers?

Your choice is to either DIY or use an IFA (ignore other types like buying direct with provider or using an FA). If you DIY then you need to research yourself. That means the providers, charges, funds, features and options. If you use an IFA then they do all that for you.

The differences between the providers can actually be significant. You have the awful virgin stakeholder with 2 or 3 funds or platform based pensions with around 20,000 investment options at the other extreme.

The most important thing is paying the right amount in contributions. After that it filters down from there as to who is best to suit your needs and requirements.

atush

Do not leave your company scheme- free money is always better than no free money. Do make sure you are putting in the amt that gets their highest contribution.

Nothing stopping you taking out a personal pension as well, and maybe transferring int hose old pensions (except any that might be FS or defined benefit ones- they shoudl be left as they are). From there, it is as Duns said- DIY or IFA if you feel you aren't up to it.

for an IFA, try the www.unbiased.co.uk website, and for DIY, have a look at the cavendish online, and hargreaves lansdown websites.

Sankesh

ermine wrote: »

You might first want to establish if the company match would still apply to pension you arrange yourself. It's unlikely. And of course if it's a final salary or even CARE pension linked to salary then do nothing to change what you get, other than increase it

Hey - this will be separate to the company pension. So I will contribute the minimum into the company pension to get the max out of the company. And then have a separate private one in which I will contribute a monthly sum.

Sankesh

atush wrote: »

Do not leave your company scheme- free money is always better than no free money. Do make sure you are putting in the amt that gets their highest contribution.

Nothing stopping you taking out a personal pension as well, and maybe transferring int hose old pensions (except any that might be FS or defined benefit ones- they shoudl be left as they are). From there, it is as Duns said- DIY or IFA if you feel you aren't up to it.

Thanks - I will research the DIY route as much as possible - that way, I will have some knowledge when going to IFA.