(Re)starting my Pension - help?

thenewbee

Hello

I currently have £3119 sitting in a Flexible Pension Plan with Aegon - it moved over after I left an old employer. I'm 26, self employed earning gross ~£1.5k per month but hoping to increase this to £2k per month. Have a mortgage & other half (becoming spouse in Jan 16) who earns £26k gross per annum.

Wondering where to start with my pension. Haven't been able to afford to contribute until now, at the moment I think I can guarantee a £50 payment into a plan per month, hopefully rising significantly in the next 6-12 months once finances settle down a bit.

I think the charges on my current plan are 1%, and my fund seems to be doing well. Should I stay put or transfer funds to another plan with lower fees? Any examples of cheaper plans? Should I keep this where it is and open a new one to pay into? What's this thing I've seen mentioned on here a Pensions S&SISA? Is it new? What differentiates it from a regular Stocks and Shares ISA?

Feeling a bit overwhelmed with all the different acronyms and names of things, and unsure where to begin. A gentle guiding hand would be appreciated as I'm well aware even saving only £50/month I'm better getting started sooner rather than later!!

Thank you in advance :beer:

jamesd

There's no pensions S&S ISA, rather, it's quite common here to recommend use of a stocks and shares ISA to those who are relatively young and receiving no more than basic rate income ta relief on their pension contributions. A S&S ISA can do all of the most commonly used investments within a pension.

Since you are self-employed you can make contributions from your company if you have one directly into your pension and thereby save more than just basic rate income tax. If you have a company. If you're a sole trader this doesn't apply.

thenewbee

jamesd wrote: »

There's no pensions S&S ISA, rather, it's quite common here to recommend use of a stocks and shares ISA to those who are relatively young and receiving no more than basic rate income ta relief on their pension contributions. A S&S ISA can do all of the most commonly used investments within a pension.

Since you are self-employed you can make contributions from your company if you have one directly into your pension and thereby save more than just basic rate income tax. If you have a company. If you're a sole trader this doesn't apply.

Thanks - I'm currently a sole trader

xylophone

http://monevator.com/cheap-stakeholder-pension/

might be worth a look.

dunstonh

I think the charges on my current plan are 1%

The Aegon Flexible personal pension plan came in three versions. All typically offered discounts (often based on fund size but could also be based on time with them). So, the 1% may be the starting point but that doesnt mean it is actually what you are paying.

Should I stay put or transfer funds to another plan with lower fees?

You need to know the charges of your existing plan before you make that decision.

Any examples of cheaper plans?

The Aegon Flexible pension plan was one of the cheaper plans during the period it was available for new business.

hat's this thing I've seen mentioned on here a Pensions S&SISA?

There is no such thing and it hasnt been mentioned here.

A gentle guiding hand would be appreciated as I'm well aware even saving only £50/month I'm better getting started sooner rather than later!!

That maybe an issue. That puts your below the minimum contribution level of many personal pensions, including the Aegon plan which was £100pm.

atush

Some of the online companies like HL will take 50 a month, but you need to be able to choose your own investments.

Ask your provider what the current charges you are paying, for both the platform and funds.