Stakeholder pension

Chemie

I wonder if someone could help.

I left my previous employment at the start of June last year and took a reduced early pension from my final salary scheme. I am 55. I found other employment later in the year but have not been paying into any pension scheme. I am not eligible to join my company’s pension scheme until April and it’s a salary sacrifice one with 5% employer contribution so I plan to enrol. However, I am concerned that I've had virtually a year with no pension contributions and also have not benefitted from tax relief. I am a higher rate tax payer.
I am able to pay a lump sum of about £10,000 and wondered whether a stakeholder pension might be suitable, as it won’t be a long term thing and I've seen that some charge less than 1% if you sign-up on line. I could continue paying a minimal contribution monthly as well if that is what is necessary/advisable. I have read info on SIPP versus stakeholder but I’m not sure I am able/ or inclined to get involved with the investments as I would be aiming to retire in 8-10 years anyway, if financially able. I understand that there will be more limited choices of investments with a stakeholder but it seems it is suitable for smaller pots.
Is this a sensible way forward? All advice welcome.

BLB53

I have read info on SIPP versus stakeholder but I’m not sure I am able/ or inclined to get involved with the investments as I would be aiming to retire in 8-10 years anyway, if financially able. I understand that there will be more limited choices of investments with a stakeholder but it seems it is suitable for smaller pots.

A lot of stakeholder plans can charge up to 1.5% in the early years, so if you can find a plan for 1% or less you will be doing well.

If you want to explore sipps there's a handy ebook I downloaded today (mentioned on www.retirementinvestingtoday.com) called 'DIY Pensions' which may help
http://www.amazon.co.uk/D-I-Y-Pensions-ebook/dp/B00B7QN8XM/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1360353814&sr=1-1
Whether you think its worth the trouble for a one off lump sum, I don't know but I think it could be a slightly cheaper option which could make a difference over 10 yrs.

You would, of course, need to select the investments to hold within the sipp - I hold shares and investment trusts, but the book suggests passive trackers for lower costs.

Hopefully other more experienced posters will be along with suggestions.

Chemie

Thanks for that BLB53; It seems that the charges mount up if you buy and sell shares in a SIPP.

I don't even know whether it is worth having such a small pension pot, although the tax advantages would suggest so, rather than have the 10K in a savings account for the next ten years. Although I'm aware that pensions can go down as well as up!
Any other views?