Stakeholders & Discount Brokers???

pat_sexy

Advice Needed?

I am thinking of getting a Legal & General Stakeholder pension through Cavendish Online (a discount broker recommended on this site).

They offer an application form online but its unclear what steps I need to take to apply for the stakeholder scheme in such a way as to get the commissions fee discount from Cavendish?

Do I just send the application to Cavendish with a cheque for £25 (fee for online applications).

Any help appreciated, thanks

Pat

lazy_worker

I took out a stakeholder pension with a discount broker, although not the one you mention, it was Hargreaves Lansdown, and I dont know how that fits with this sites recommendations.
One feature i do like about discount brokers is that i dont pay the full 1% charge on the fund, but something more like 0.85%.
Although the stakeholder poloicy is with Standard Life and i'm sure that is now something i should look at.
Lazy worker

ernie

In my experience Cavendish Online are certainly the best deal. The initial fee is all the payment they receive whereas other discount brokers get trail commision etc. Can make a big difference to final fund value

Ernie

dunstonh

With pensions, IFAs get a choice of either trail commission or some form of contribution based commission. They do not get both, like ISAs.

These discount IFAs (brokers is really the wrong term to use) are working on execution only. You choose the provider and funds. That is why they are cheap.

It is possible on full commission to get a pension plan with a reduction in yield of just 0.6% over the term. Thats with full advice and consumer protection. The beats the 0.85% mentioned higher up with no advice or consumer protection.

Although the stakeholder poloicy is with Standard Life and i'm sure that is now something i should look at.

Why? Nothing wrong with Standard Life as a pension provider. Good service, good fund selection. Only thing against them is that they are not the cheapest. However, the extra 0.x% does get you good service.