What Pension to choose for later drawdown?

WorldCitizen

Hello,
I am about to open some Pension. But I am confused about the type to choose.
My aim is to have a pension to cover say 10 years before State pension. So I will need the drawdown option. Am I right?
I have read about pensions and understand that I can open a SIPP or DIY pension to get drawdown. But the problem is they have requirement to invest at least 200 pounds a month (if I remember correctly). At the moment I don't work (student), but would like to start to put some minimum amounts - say 25-35 a month. Could you advice if it exists any pension where I could put in small amounts per month AND this would be drawdown option in the future?
Thanks.

Mnd

Hargreaves lansdown allow you to open a sipp with 100 (80net) and then pay in smallish amounts I think.phone them up, they are very helpful

green_man

How old are you now. How long do you expect to contribute to this pension before you might want to start drawdown.

If (as I expect from reading between the lines of the above) the answers to this last question is >10 years then dont worry too much about whether the provider you invest with offers drawdown, you can always transfer your
pension to someone that does at a latter date.

It’s always a good idea to start contributing to a pension as soon as you can so £25-35 is better than nothing and there are products that accept these level of contributions such as Aviva’s Stakeholder pension (not a recommendation as such just an example)

WorldCitizen

Thanks for your answers.
Do you know if it is simple to do the transfer to other provider for other product?

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I am 36. I have been out of work for 6 years - I've been a housewife with a child at home and a student. My state pension age is 68, so I would like to go earlier at 58.
I have 22 years to contribute to pension. I don't have any at the moment. I just opened a LISA with one-off payment of £50.

WorldCitizen

Mnd, thank you, I found this!
Hargreaves Lansdown: Monthly Direct Debit contributions must be a minimum of £25 gross.

xylophone

Have you obtained a state pension statement?

https://www.gov.uk/check-state-pension

For a very modest contribution, a stakeholder might make more sense - it would be possible to transfer to a drawdown pension when you needed to access it.

WorldCitizen

My UK State Pension forecast:
10 years of full contributions, 31 years to contribute before 5 April 2048, 2 years when you did not contribute enough.
Estimate based on your National Insurance record up to 5 April 2017 - £51.58.
Forecast if you contribute another 24 years before 5 April 2048 - £159.55.
I will have also other EU country’s State Pension – estimated 10 Euro per month

I am planning to live in another country in retirement age where the smaller amount of money I will need to live on each month. £450-500 will be enough in pounds. Also I am going to buy a flat there soon mortgage-free.

WorldCitizen

xylophone wrote: »

For a very modest contribution, a stakeholder might make more sense .

Sorry I don't understand what do you mean?

IanSt

WorldCitizen wrote: »

Do you know if it is simple to do the transfer to other provider for other product?

It certainly should be provided that you choose a mainstream pension provider. I've been consolidating pension funds from four different providers and they have all been very helpful. It can take a month or so if they have to use paper forms, but I would hope that when you get to needing to do this that everyone would be using electronic means and it will be a lot quicker.

WorldCitizen

Now I need to organise and make some planning. When I will be back to work I plan to save a decent % of my wage. Not sure how is the best to split money between the accounts regarding the access to money at different age - I mean ISA, LISA, SIPP. And also I don't need to forget about the mortgage. The balance is about £66000.

WorldCitizen

IanSt, thanks for your reply!
I certainly need to be careful choosing the provider as I have heard for example Nest doesn't allow the transfers.
Anyway I will need to read a lot about providers...