Low cost Basic Private pension?

xylophone

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.

???

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

"How much can be invested in a stakeholder pension?

There is no limit to the amount that can be invested in a stakeholder pension scheme. However, tax relief can only be obtained on contributions up to a maximum annual contribution limit (known as an individual’s ‘annual allowance’). For the tax year 2013/14, this is set at the lower of 100% of an individual's UK earnings or £50,000 per annum (£40,000 from 2014/15) – carry forward of unused allowances may be permitted in some circumstances. It is possible to contribute up to £3,600 per year (including tax relief) into a stakeholder pension scheme even if a person is not earning.

A member of an occupational pension scheme may also contribute to a stakeholder pension scheme."


http://www.hmrc.gov.uk/incometax/relief-pension.htm

2poor4this

Thanks for clearing that up, it seems the website I was looking at is wrong. A stakeholder pension seems like a good option for what I want.
Why is the stakeholder pension so cheap compared to a personal pension, is it because it has less options to invest?

Thanks for the help so far.

bigadaj

2poor4this wrote: »

Thanks for clearing that up, it seems the website I was looking at is wrong. A stakeholder pension seems like a good option for what I want.
Why is the stakeholder pension so cheap compared to a personal pension, is it because it has less options to invest?

Thanks for the help so far.

You are probably best off with a personal pension, stakeholders are fine for very small contributions, but for larger sums then personal pensions can be cheaper as well as offering a wider range of investment options.

The investment world is still in a bit of turmoil with the rdr changes, and for some people a SIPP may be cheaper than a personal pension, but a personal pension is probably best for your situation.

Next job is to determine what to invest in with your money within the personal pension, as the pension is just a wrapper and there will be many fund choices to make including trackers, managed funds and active specialist funds.

zagfles

2poor4this wrote: »

Thanks for clearing that up, it seems the website I was looking at is wrong. A stakeholder pension seems like a good option for what I want.
Why is the stakeholder pension so cheap compared to a personal pension, is it because it has less options to invest?

Thanks for the help so far.

They aren't are they? See the Cavendish link above, you can get personal pensions for around 0.5% charge or less

gadgetmind

zagfles wrote: »

you can get personal pensions for around 0.5% charge or less

And try doing *that* before RDR and its ilk!

Yes, no-one likes change, but this is an industry that's changed massively for the better in less than a decade.

If the guys in pinstripes don't see it that way, then my heart bleeds for them, it really does.

honizz

I don't know if I'm reading this right but my Aviva stakeholder charge is 0.55%
All of the options on Cavendish are higher than this for a new pension, until it gets above approx 20k?

H