Low cost Basic Private pension?

2poor4this

I was thinking of opening a SIPP but reading on here it would seem a private pension would suit my needs better and be cheaper to run.
I'm looking to reduce my tax burden with a private pension which gives me some extra flexibility on my current pension arrangements, I laready have a deferred final salary pension and a current company pension.
I'm considering contributing approx £500 a month into a new private pension, I was hoping to find a simple setup with something similar to a Vantage life strategy fund to invest in where I can stop/start or add lump sums as required whenever I want.
Is this a sensible option or should I be looking at something else?

xylophone

A personal pension? http://www.cavendishonline.co.uk/pensions/personal-pensions/ might be worth a look?

Sobryma

If you have an existing company Group Personal Pension or equivalent you may well find that is lower cost than choosing your own pension - unless you specifically want access to Vanguard (remember you will pay a pension/scheme charge as well as the management fee).

2poor4this

Thanks for the replies, I've considered paying extra into the company scheme but it will be as AVC's and I cannot take a lump sum from them and my contributions will not be matched as I'm already paying the maximum they will match.
The money I intend paying into a personal pension is from rental income for a property I own so is not linked to my job. The rental income pushes me into the 40% tax bracket so I was after something flexible as 55 is only 8 years away although I'm looking at 60 as early retirement so that'll give 12-13 years worth of investments.
I want something easy to manage which is flexible enough for me to change the contributions or add lump sums as and when to keep me below the 40% bracket.

kidmugsy

One possibility we've considered is opening a SIPP with JPMorgan (scroll down to p52) and investing in the Mercantile Investment Trust (p59).
That's invested in the UK, so we'd have balanced our investments using money elsewhere - in your case, perhaps your company pension.

http://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats31Dec2013.pdf

xylophone

I want something easy to manage which is flexible enough for me to change the contributions or add lump sums as and when to keep me below the 40% bracket.

Stakeholder pension? http://www.thepensionsregulator.gov.uk/employers/about-stakeholder-pensions.aspx

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

http://www.standardlife.co.uk/1/site/uk/pensions/products/stakeholder

http://www.legalandgeneral.com/pensions-retirement/stakeholder-pensions/
http://www.pru.co.uk/existing_customers/products/stakeholder_pension/

2poor4this

xylophone wrote: »

Stakeholder pension? http://www.thepensionsregulator.gov.uk/employers/about-stakeholder-pensions.aspx

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

http://www.standardlife.co.uk/1/site/uk/pensions/products/stakeholder

http://www.legalandgeneral.com/pensions-retirement/stakeholder-pensions/
http://www.pru.co.uk/existing_customers/products/stakeholder_pension/

Thanks for taking the time to post this, I've looked into these following your post and unfortunately you can only invest £3600 a year into them in total even if you open more than 1, long term that wont be enough.

2poor4this

kidmugsy wrote: »

One possibility we've considered is opening a SIPP with JPMorgan (scroll down to p52) and investing in the Mercantile Investment Trust (p59).
That's invested in the UK, so we'd have balanced our investments using money elsewhere - in your case, perhaps your company pension.

http://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats31Dec2013.pdf

Thanks for the post, I'm still wondering if a SIPP or personal pension is the way to go, lots of reading to do.

zagfles

2poor4this wrote: »

Thanks for taking the time to post this, I've looked into these following your post and unfortunately you can only invest £3600 a year into them in total even if you open more than 1, long term that wont be enough.

Don't you have any earned income?

2poor4this

Yes I have an earned income and have pension arrangements to suit. My comment on the maximum allowable on a stakeholder pension was based on the information I found HERE if that's wrong it would seem a stakeholder pension is the way to go.

dunstonh

Thanks for the post, I'm still wondering if a SIPP or personal pension is the way to go, lots of reading to do.

All pensions have the same limits. It doesnt matter if its SIPP, PPP or SHP.