Pension advisor sharp intake at my Virgin Stakeholder Pension..

SimpleLife

Brief background...

Just got a mortgage via a broker and now he is trying to sell me loads of stuff... Life insurance, income protection, new pension blah blah.

I have an appt with his "pension man" in a few weeks. Apparently he took a sharp intake of breath when he told him I have a Virgin Stakeholder Pension plan set up for myself and also one each for my two children (aged 3 and 5). He said I need to change them ASAP!!!!

As I've been saving for a deposit I have been paying in the absolute minimum (£25 pm in each pot) for the last 2 years or so. My intention is to up this significantly once my finances recover from the house purchase!!

If it helps I am self employed and pay basic rate tax at the moment. I'm 31, married but separated.

Are these plans really a bad idea????? I'm a bit clueless!!!

greenglide

The Virgin pension certainly isn't the best product around but at low contribution levels there isn't much to lose.

Is this "pension mania proper independent financial advisor? A rep from a bank or similar organisation could well sell you an equally poor product. You need to find this out first.

You say you are "self employed", are you really self employed ie a sole trader or are you a director / employee of your own limited company? This matters as a lot of the ideas proposed will be dependant on which employment status you actually have.

dunstonh

Apparently he took a sharp intake of breath when he told him I have a Virgin Stakeholder Pension plan set up for myself and also one each for my two children (aged 3 and 5). He said I need to change them ASAP!!!!

Regulars on this board will note that we use that pension as an example of one of the worst pensions on the market. It is expensive for a DIY option and has a poor investment selection.

However, for very small amounts and flexible payment options, it is perfectly fine. At £25pm you are not going to have access to the better pensions. So, in summary, yes it is rather rubbish in general but you fit a niche where it is suitable....for now.

SimpleLife

I'm a sole trader - properly self - employed!

coyrls

You got your mortgage via a broker. I think that should be the end of the transaction. If you want pension advice you should make your own choice of advisor, if you want life insurance, income protection etc, you can do your own research. Just tell your broker that you are not interested in sourcing other products or services from them. If I wanted advice on a pension, I wouldn't be asking a mortgage broker who his "pension man" was.

missile

I would suggest you should be careful not to be suckered by this mortgage advisor. His advice may or may not be sound, just remember he gets paid to sell products.