New to Personal Pension

bowlhead99

berbatov10 wrote: »

When I retire I would like to do a lot of travelling etc so Iam looking for something that I can invest in, leave untouched (as such) and let it plod (hopefully not) along. I am not risk averse but I would not want to be putting it all into a 'casino' either I guess medium risk describes me.

But presumably you won't leave it untouched forever as you need to touch it to spend it on your retirement.

Do you perhaps intend this pot to provide you a small annual income to supplement the main £25k to help you fund 20 years of travelling before you sit at home for your last 20 years after that? Or do you intend to simply use it to take a quick short term tax break, invest pretty cautiously, and in 4.5 years start to draw it out in big chunks to spend over 3-4 years of intense travelling?

The goals and the timeframes have an impact on the most suitable mix of assets. You may find that 60% largecap equities (a quarter in the UK) and 40% in bond indexes (almost half in the UK) is not suitable for the objective, once you have defined what the objective actually is.

I'd agree with jamesd that there are a variety of complementary asset classes out there and so the simplest-looking fund is not always the best for the job. Different jobs can be done best by different sets of tools.

berbatov10

My intention is to supplement my income at retirement. I think? on going pension contributions maybe the best way to do that. I say that as I have 2 BTL properties which will give me around £1300 per month as well when paid off. again around that time. As you say charges can be a big chunk of it. I dont think I am well read or know enough to speculate too greatly and as I say I would like to travel so would be looking for simple holdings

Jaguar_Skills

So I found out today that my start date for my employers contribution is April 2016. Should I wait until that point to start my pension? Or shall I start with a personal one now?

I think the Vangyard seems to be a sensible option but I don't really know what to read before I do so.

Is there a link to good personal pensions? I thought I had found one through Cavendish but apparently it was just a stakeholder or SIPP?

xylophone

Does the employer pension give matched contributions?

Pay in enough to get the highest contribution from the employer then use a PP.

Cavendish offer PP as well as stakeholder.

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

Jaguar_Skills

xylophone wrote: »

Does the employer pension give matched contributions?

Pay in enough to get the highest contribution from the employer then use a PP.

Cavendish offer PP as well as stakeholder.

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

Hi xylophone.

Yes the employer is going to do matched contributions up to a cap but not sure what that will be yet. I was looking on the Aviva website but I need to work out how to invest. I just really want a multi asset fund or something like the Vanguard Life Strategy but doesn't seem to be any on the Aviva fund list

xylophone

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


"The Cavendish Online FundSupermarket Pension

Cavendish Online have launched our new pension powered by FundsNetwork. We are able to offer one of the lowest cost pensions in the market with an annual fee of just 0.30%. You have access to over 2,300 funds on the FundSupermarket and only pay the fund charge, a 0.25% platform fee to FundsNetwork and a 0.05% annual fee to Cavendish Online."

Does the above give you access to what you want?

Jaguar_Skills

Yes this gives the Vanguard although Bowlhead thought in another thread this isn't the pension I should be going for. I cannot remember the thread though.

Bowlhead, if you see this are you able to advise again why you said not to use the above for something like Vanguard rather than a personal pension from Cavendish?

Thanks xylopohine

berbatov10

Guys not hijacking the thread but I have looked at SIPPS and the charges for some are 1.76 % !! Is there anything wrong with putting a lump sum into Vanguard 60/40 as a pension and contributing monthly??

Jaguar_Skills

Berbatov, as I understand it a lot of the personal pension plans restrict you with what you want to invest in. I.e Vanguard under Cavendish PP you cannot invest in the Life strategy series. Hijack all you want, it is always good to get anwers.

dunstonh

and the charges for some are 1.76 %

Its unlikely any SIPPs are that expensive. Most are around 0.25%-0.5% mark. The investment charges need to be added on top and that could take it to 1.76%.