Pension advice please

sg1_2

Hi people,

I have recently started to get myself (almost) out of debt and am now looking to the future.

I have a personal pension, which I started when I was 18, I'm now 43. I have hardly ever paid into this, only what has been added via national insurance etc.

I have been advised by L&G that as it's an old type I should think about starting a new stakeholder pesnion, then transfer my old one into that.

I am totally clueless about pensions so would like some advice on which to go for if possible?

If it makes any difference, the fund is just under £12,500.

Also, at the point of retirement, how is the amount of the fund used to determine my pension amount on an annual basis?

Many, many thanks for any help and advice.

Steve.

mania112

There are actually pensions cheaper than the default stakeholders now - look for something that costs around 0.8% and you'll be on the right track
http://www.cavendishonline.co.uk/pensions/personal-pensions/

sg1_2

Thank you, I will look into this.

Steve.

Carpi09

mania112 wrote: »

There are actually pensions cheaper than the default stakeholders now - look for something that costs around 0.8% and you'll be on the right track
http://www.cavendishonline.co.uk/pensions/personal-pensions/

Would you recommend any of those companies within that personal pension and why?

mania112

They're all pretty similar.

The OP has £12.5k already so is near a reduction in charges with AEGON and Aviva - so they're top in terms of costs.

I like Aviva.

Friends Life seem to be fading a bit as a company (closing offices, selling parts of its business) - that could be seen as a bad sign.

Scottish Life are good company, but their charges seem higher than the others.

Not been much of a fan of Skandia, but for no real reason, so can't count them out. I think I'd be right in saying that Skandia are probably the smallest company of the bunch (but big in Europe) - if that is relevant?!

Generally, though, you can't make a mistake with anyone on the list.

Carpi09

mania112 wrote: »

They're all pretty similar.

The OP has £12.5k already so is near a reduction in charges with AEGON and Aviva - so they're top in terms of costs.

I like Aviva.

Friends Life seem to be fading a bit as a company (closing offices, selling parts of its business) - that could be seen as a bad sign.

Scottish Life are good company, but their charges seem higher than the others.

Not been much of a fan of Skandia, but for no real reason, so can't count them out. I think I'd be right in saying that Skandia are probably the smallest company of the bunch (but big in Europe) - if that is relevant?!

Generally, though, you can't make a mistake with anyone on the list.

Thanks, I was reading somewhere that Skandia were rated top.

I still can't make my mind up, stakeholder or just open a SIPP with Vaguard LS and be done with it.

Jack_Griffin

mania112 wrote: »

Friends Life seem to be fading a bit as a company (closing offices, selling parts of its business) - that could be seen as a bad sign.

They bought out AXA a few years ago, maybe they're just getting round to 'rightsizing' to use the awful language that allows management not to say "cost cutting & job losses".

sg1_2

So, in my case the best deal would be the Aviva one? Start that and transfer in my old L&G plan? Would it be better to do this direct through Aviva or the website you linked me to?

Sorry for the questions, I'm not a dumbo but these things are beyond me.

Thank you once again.

Steve.

Carpi09

sg1 wrote: »

So, in my case the best deal would be the Aviva one? Start that and transfer in my old L&G plan? Would it be better to do this direct through Aviva or the website you linked me to?

Sorry for the questions, I'm not a dumbo but these things are beyond me.

Thank you once again.

Steve.

I don't think you can go direct unless you go through an IFA.

So going through Cavendish would be your route.

sg1_2

Carpi09 wrote: »

I don't think you can go direct unless you go through an IFA.

So going through Cavendish would be your route.

Thank you :beer:

atush

Congrats on getting debt free!

You are starting off a bit late, so make sure you put in some good sized contribs. As a side note, who is your employer? Do they have a scheme? If they don't they will do soon. The very best pension is the one someone else ie your employer pays into for you. We like to call this 'free money'.