Help with picking a pension

AJRobson

I know almost nothing about pensions and could really do with some advice and information in picking one. I spoke to the head of accounts at my current company and they said the the company do not make any contributions if I was to sign up to the pension but by law they have to by 2015. She told me nobody at the company pays into the pension because it doesn't offer anything. Currently I have just been saving money each month (more than I would probably pay into a pension anyway) but I want to sign up for a pension for my future. Can anyone recommend a pension plan they use or give any advice that would be helpful? Like I said I know next to nothing about pensions so I need all the help I can get. Thank you.

bigfreddiel

SIPP and invest in the Vanguard Lifestrategy 60 ACC fund

fj

kidmugsy

AJRobson wrote: »

they said the the company do not make any contributions if I was to sign up to the pension but by law they have to by 2015.

Unless you are a higher rate tax payer it might be in your interest to wait until 2015 and sign up then. Meantime you could save into Cash ISAs and perhaps invest into a Stocks and Shares ISA.

dunstonh

I know almost nothing about pensions and could really do with some advice and information in picking one.

What does your adviser suggest?

I suspect you would eliminate a SIPP (as that is the experienced investor option). That leaves you with stakeholder or personal pension or wait until 2015.

She told me nobody at the company pays into the pension because it doesn't offer anything.

That is normal. These are known as hollow schemes. Once there is employer money being paid in though that will change.

Can anyone recommend a pension plan they use or give any advice that would be helpful?

Its a regulated activity so the answer will be no. All we can do here is discuss and comment. Not advise. Also, pensions are like any other retail product. Different versions from the same provider are priced differently through different distribution channels. Someone with xyz pension may have a version that was very good but no longer available and the current version is quite poor. So, you shouldnt rely on what other people have. Also, an experienced investor will typically want something that is more advanced than someone that is inexperienced.

Given the short timescale to 2015, I would be inclined to wait for the employer scheme and put aside the money you wish to pay in to the pension into an ISA.

atush

bigfreddiel wrote: »

SIPP and invest in the Vanguard Lifestrategy 60 ACC fund

fj

Bond heavy during this market. 80/20 is better

AJ, you need to decide to open a personal pension now (and get BRTax relief) or to invest in Stocks and shares ISA while you wait for a contribution from your employer. Then join the employers pension.

Or indeed both, as you say you are saving more than you would put into a pension.

Sipps are for more experienced investors, but if you opened one and just used a Lifestyling fund (which is a fund that includes shares/funds in the first %, and Bonds for the second %) such as the Vantage ones mentionned, it could at least be a way to start.

To open a PP online, look at the charges and funds available at places like Cavendish online, or S&S isas as well. Or you can consult an IFA- to find one, use unbiased.co.uk

DavidLaGuardia

bigfreddiel wrote: »

SIPP and invest in the Vanguard Lifestrategy 60 ACC fund
fj

atush wrote: »

Bond heavy during this market. 80/20 is better

:mad: Both of you have no business making comments like this to the original poster.

Do your know their age, their tollerance to loss and what other assets/objectives they have?

Guidance on how to find information to make the right decision or be advised is one thing. Misplaced advice is another!

xylophone

Given the short timescale to 2015, I would be inclined to wait for the employer scheme and put aside the money you wish to pay in to the pension into an ISA.

The downside to this is that were you to be unfortunate enough to require means tested benefits, the money that you regard as "set aside for pension" would be taken into account and you could find yourself using it up in day to day living.

You might consider at least making a start on a pension - it may be possible to transfer in to your employer's scheme in 2015 if it is in your interest so to do.

https://www.moneyadviceservice.org.uk/en/articles/worried-about-the-cost-of-starting-a-pension

http://www.cavendishonline.co.uk/pensions/

atush

DavidLaGuardia wrote: »

:mad: Both of you have no business making comments like this to the original poster.

Do your know their age, their tollerance to loss and what other assets/objectives they have?

Guidance on how to find information to make the right decision or be advised is one thing. Misplaced advice is another!

True, and yet so rudely put???

Anyway, couldn't let bigfreddie's post stand, given there is a bubble working it way in the bond market. My comment was to him, not the OP.

Tho OP can do some research and see what % in bonds they want, or they can go to an IFA as recommended by me.

Kidmugsy saying Cash ISAs and S&S isas (as I did w/o the mention of percentages/lifestyling) is not being irresponsible, so I suggest you at least apologize to them.

dunstonh

The downside to this is that were you to be unfortunate enough to require means tested benefits, the money that you regard as "set aside for pension" would be taken into account and you could find yourself using it up in day to day living.

No option is perfect. Maybe a couple of years to build up a decent savings pot is a good thing? (we dont know enough but better to have some money than rely on benefits)

DavidLaGuardia

atush wrote: »

True, and yet so rudely put???

Anyway, couldn't let bigfreddie's post stand, given there is a bubble working it way in the bond market. My comment was to him, not the OP.

Tho OP can do some research and see what % in bonds they want, or they can go to an IFA as recommended by me.

Kidmugsy saying Cash ISAs and S&S isas (as I did w/o the mention of percentages/lifestyling) is not being irresponsible, so I suggest you at least apologize to them.

Indeed I do apologise profusely to Kidsmugsy, I cut and pasted his quote and not bigfreddie's (don't know how, late tired and incensed). It is corrected now.

It was aimed at bigfreddie in the main, but you also should not have countered it with another suggestion that is "better". I did not mean to be rude but if I was curt in making the point about blind guidance that may be harmful, I make no apology for that. Your other comments were good.

atush

Yes you were extremely rude, and were way out of proportion in your comments to me for use of the word 'better'.

Esp when others here suggest daft things like BTL and gold to newbies.

at least you have the good grace to apologize to someone.