Where to start in choosing a pension provider - help appreciated

mickeyb102

Hi, I am looking for a private pension plan but have no idea where to start...

I am 51 years old, 400K house with mortgage paid off, around 200K in various cash bank accounts / cash ISAS. I have an old company pension that I have not paid in to for 20 years which has a current value around 30k but the pension company will not allow any further payments in to this. Back then the pension was based on ‘with profits’ so I knew how much was there, but I understand the value of your fund now days is totally variable based on provider and market performance?

I notice that companies like Aviva are offering schemes with ‘ready made funds’ and I wondered if this is the way to go as I have little knowledge of companies/funds/investment, or should I be looking at learning more and going with a SIPP. My company have to start offering a scheme in April but are happy to salary sacrifice and pay to my own scheme. Pensions worry me – will the fund lose money, will the government keep changing the rules, will I be forced to incur costs and seek advice, etc. With buy to let being discouraged, the only other option would appear to be Stocks and Shares ISA’s or sticking with cash savings.

I really would appreciate any advice on seeking a suitable pension provider.
Thank you.

xylophone

My company have to start offering a scheme in April but are happy to salary sacrifice and pay to my own scheme

I am not sure that this will be acceptable under auto enrolment.

http://www.thepensionsregulator.gov.uk/doc-library/automatic-enrolment-detailed-guidance.aspx#s11494

Why not a company pension scheme with salary sacrifice?

I have an old company pension that I have not paid in to for 20 years which has a current value around 30k but the pension company will not allow any further payments in to this.

What kind of pension is this?

Have you obtained a new state pension statement?

https://www.gov.uk/yourstatepension?utm_source=Mail-Online&utm_medium=Partnership&utm_campaign=GTKY

mickeyb102

Hi , thanks for reply.

The company pension scheme that will be introduced in April may be fine but it was suggested to me that this might not be the best scheme and so I wanted to research the best options. I am a Director and shareholder at the Company but, due to restrictions I will not bother you with, we have to take a base salary which puts us at around £40k salary which is not ideal from a tax point of view but nothing I can personally do about this. I understand that I would be allowed to salary sacrifice to any scheme but maybe, as you suggest, this might not be possible,

The old pension is a Royal London with profits policy. I have checked the pension statement and have the qualifying NI years already.

Thanks

xylophone

Might you benefit from specific advice tailored to your situation?

You could look for an IFA here

https://www.unbiased.co.uk/

dunstonh

I notice that companies like Aviva are offering schemes with ‘ready made funds’ and I wondered if this is the way to go as I have little knowledge of companies/funds/investment, or should I be looking at learning more and going with a SIPP.

There is nothing particularly wrong with the old insurance company schemes with in-house investment options. The investments wont be great but they wont be bad. They wont be low cost and probably cost more than using an IFA in the long run. However, they are simple.

SIPPs are the experienced investor option. You can get cheap or expensive options within that. The possibility of getting things wrong is much greater as it is the advanced option. Although the better types of investment are likely to be available.

I understand that I would be allowed to salary sacrifice to any scheme but maybe, as you suggest, this might not be possible,

Shareholding directors normally make company contributions and dont use salary sacrifice as there is no point. Your situation does sound unusual with the high salary. So, some understanding as to why it is like that would be useful.

If you employ people, then you will have to bring in auto-enrolment and you will be captured under this. If there are no employees, then officers of the company are not caught under auto-enrolment.