Civil Service Stakeholder Pension - Choices

JanineB

Hi there,


I am seeking some general advice on pensions. I am 28 and am in a fixed term role for 11 months in the Civil Service.


We are offered two types of pension: Nuvos and Stakeholder.


As my role is less than 2 years I am not eligible to take the Nuvos pension. I am eligible to take the stakeholder pension. My employer will pay in 6.5% to this and additionally will match my owncontribution (up to 3% of my salary). They will pay 6.5% into it even if I paynothing so I figured it’s a good deal to take it up. I will be paying into it at 3% I have decided as I currently don’t have any pension and I’d like to make a decent start.


The two providers offered for the Civil Service Stakeholder Pension Scheme are Scottish Widows and Standard Life. I have sent away for information packs from both and after having had a read through these, they both seem pretty similar. I’m wondering if anyone has any advice on which provider is best as I need to make a choice between the two.


In terms of fees:


SW state “Currently,our normal Total Annual Fund Charge (TAFC) for Stakeholder Pensions is 1% ofthe value of the funds. However, the TAFC has been specifically reduced for theCivil Service partnership pension account with Scottish Widows. Charges for theCivil Service partnership pension account are reduced by 0.4% to a TAFC of 0.6%.”


With SL, the fee is 1%, however they say thatyou get back a 0.4% rebate (a termnegotiated with my employer).


Once I leave my employer next year, will the TAFC revert to 1% as I am no longer employed by the civil service?


Another issue to think about is transferring. I will not be in the civil service long and may wish to transfer this pensioninto another scheme when I get another job. SL say they have no transfer fees.SW say there may be a fee fortransferring but don’t give an indication of how much this might be…


In terms of fund choices. I am not experienced with pensions, nor with investing so I have decided to opt for one of the ‘ready made’options rather than chosing my own funds to invest in.


I am veering towards being balanced with my fund options as I don’t want to risk losing everything but would also like to see some growth. If I were to chose SW I would chose Balanced. SL I find more confusing. Not sure where I would start!


With SW the options available to me are:


Adventurous:

Portfolio One :

Overseas Equities: 50% in SW SSgA 50:50 Global Equity Index Fund

Uk Equities: 50% in SW SSgA 50:50 Global Equity Index Fund



Balanced:

Portfolio Two:

Overseas Equities: 42.5% in SW SSgA 50:50 Global Equity Index Fund

Uk Equities: 42.5% in SW SSgA 50:50 Global Equity Index Fund

Corporate Bonds: 15% in SW Corporate Bond Fund



Cautious:

Portfolio Three:

Overseas Equities: 35% in SW SSgA 50:50 Global Equity Index Fund

Uk Equities: 35% in SW SSgA 50:50 Global Equity Index Fund

Corporate Bonds: 22.5% in SW Corporate Bond Fund

Index-Linked Bonds: 7.5% in SW Indexed Stock Fund


Info on these here: http://reference.scottishwidows.co.uk/docs/45770IG.pdf



With SL the options are: (Volatility rating in brackets – higher the number the more volatile)


1. Standard Life Balanced Managed II Lifestyle Profile

-Standard Life Managed Pension Fund (5)

-Standard Life Multi Asset Managed (20-60% shares) Pension Fund (3)

-Standard Life Annuity Purchase Fund (4)

-Standard Life Deposit & Treasury Pension Fund (1)



2. Standard Life Cautious Managed II Lifestyle Profile

-Standard Life Multi Asset Managed (20-60% shares) Pension Fund (3)

-Standard Life Annuity Purchase Fund (4)

-Standard Life Deposit & Treasury Pension Fund (1)



3. Standard Life Global Equity 50:50 Active II Lifestyle Profile

-Standard Life Global Equity 50:50 Pension Fund (6)

-Standard Life Annuity Purchase Fund (4)

-Standard Life Deposit & Treasury Pension Fund (1)



4. Standard Life Global Equity 50:50 Passive II Lifestyle Profile

-Standard Life Global Equity 50:50 Tracker Pension Fund (6)

-Standard Life Annuity Purchase Fund (4)

-Standard Life Deposit & Treasury Pension Fund (1)



5. Standard Life FTSE Tracker II Lifestyle Profile

-Standard Life FTSE Tracker Pension Fund (6)

-Standard Life Annuity Purchase Fund (4)

-Standard Life Deposit & Treasury Pension Fund (1)



6. Blackrock 50:50 Global Equality II Lifestyle Profile

-SLBlackRock Managed (50:50) Global Equity Pension Fund (6)

-Standard Life Annuity Purchase Fund (4)

-Standard Life Deposit & Treasury Pension Fund (1)



Info on these here - http://www.standardlife.co.uk/1/content/resources/uk_internet/PDFs/Retail/gspp41.pdf



Any help/advice/experiences on which provider would be best would be appreciated.



Thanks in advance.



Janine