What Pension Plan

taking_stock

Danielle.j87 wrote: »

I am 25, and want to start a pension. But have no idea where to start! My employer is not contributing so it would just be my contributions. I am looking to invest between £50-£100 a month into a plan.

Can anyone help me with regards to who is best or which to go about?

Thanks

hi Danielle,

well done for thinking of starting a pension at your age, it'll be one of those things you are increasingly thankful at having done, as the years go by.

a personal pension can be done for that amount and is also probably the cheapest option. Stakeholder was also mentioned, but these tend to be a little more expensive (though 0.5% of the fund per year can be found online, eg Cavendish). However, where stakeholders do well is in flexibility - most of them allow you to drop an extra £20 (net) into it whenever you have the money. Also, every time you add £20, then £25 automatically appears in your account (usually viewable online), as they reclaim the tax automatically.

Personally, I think stakeholders get a bad press, but offer such a huge benefit over not doing anything, or finding it all too difficult. These were, after all, the reasons they were introduced, to make pension saving more simple, flexible and therefore more attractive to 'average people'.

just take a look at either option and make sure you don't be put off by the (distracting) conversations which take place on these forums. good luck.

FatherAbraham

taking_stock wrote: »

Stakeholder was also mentioned, but these tend to be a little more expensive (though 0.5% of the fund per year can be found online, eg Cavendish). However, where stakeholders do well is in flexibility - most of them allow you to drop an extra £20 (net) into it whenever you have the money. Also, every time you add £20, then £25 automatically appears in your account (usually viewable online), as they reclaim the tax automatically.

The stakeholders I set up last year through Cavendish with Scottish Equitable have a minimum in=payment level of £20 gross, not net.

In other words, one only needs to find £16 to make a deposit.

Warmest regards,
FA