Advice needed re The People's Pension

Tainted_love

Hi, my husband works for a national retailing company and is being asked to join their pension as part of the new guidelines re auto enrolment. If he decides to join, it will be The People's Pension who will be looking after the employee's pension money.

Do people have any opinions about The People's Pension? Our concerns are that it states that this type of pension is an annuity one, what exactly does this involve?

Also it states that " your money is held in an investment of your choice" from cautious to adventurous and that on reaching retirement age you " buy" an income. We are concerned as didn't expect a pension to be an investment risk ? Any advice greatly appreciated on this.

hugheskevi

If he decides to join, it will be The People's Pension who will be looking after the employee's pension money.

Presumably this one

Do people have any opinions about The People's Pension?

One of the major providers competing for pension business. A pretty typical offering - fairly low cost, fairly limited range of investment options. Good enough for the average employee.

Our concerns are that it states that this type of pension is an annuity one, what exactly does this involve?

A typical pension - you and the employer put money it, it is invested and hopefully grows, and when you get to retirement you purchase an annuity from an insurer, which pays you a guaranteed amount each year.

There are other options, but annuities are the most common way of taking pension benefits.

We are concerned as didn't expect a pension to be an investment risk ?

This is normal.

What were you expecting? Some sort of final salary pension (not common in private sector any more) or with-profits (more popular 15 years ago) or something else?