easy personal pension for 37yrold

retiredinfrance

Our DD is employed and selfemployed. There is a pension with the employment but she needs to start one with her other "half". She can afford 100£ before tax relief per month, needs the ability to increase this amount, needs to be able to take the pension when she wants and needs to add big lump sums to the regular payments. It has to be a personal plan , not a SIPP as neither of us would know what to invest in. So, what companies are recommended and also is there an easy place to see the performance of each company. She has an accountant and we may in the near term ask his advice or that of an IFA. Can anyone offer any advice, please.

xylophone

Self employed or employed by her own limited company?

https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/tax-relief-and-contributions

https://www.taxcafe.co.uk/pensionmagic.html

https://www.pensionbee.com/guides/download-self-employed-guide

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

https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser

bostonerimus

retiredinfrance wrote: »

It has to be a personal plan , not a SIPP as neither of us would know what to invest in.

If this is the case don't put any money in a define contribution pension until you understand how it will be invested. It takes a couple of days of research and reading to understand the basics. Understand the basics and the fees before you do anything. Abdication of responsibility is not a good way to ensure your financial security. You might find an IFA and an insurance company that are really good, or you might end up with expensive and poorly performing funds.......without your own knowledge how will you know?

HappyHarry

What type of pension is her employers plan? Is she intending on remaining with her employer for the next 18 years? Does she want a separate pension, or would she be happy to add more to her employers plan?

When you say she wants to be able to take the pension when she wants, you are all aware that the minimum age for taking it will be 55?

retiredinfrance

Thanks. She is not in a company, just "plain" self-employed. I looked at some of the sites you mention but there seemed to be a preference for SIPPs and I think they are too complicated. I am the one doing the legwork as I being older am supposed to know more. Thanks again

dunstonh

There is a pension with the employment but she needs to start one with her other "half".

Why?

Most workplace schemes allow you to pay in more. So, can hers?

It has to be a personal plan , not a SIPP as neither of us would know what to invest in.

personal pensions need you to pick investments just like SIPPs. The available options may be a little less (38,000 on a SIPP compared wtih 1500 on a personal pension) but you still need to pick. Plus, personal pensions are mostly retailed in the advice side of distribution. There are hardly any PPPs retailed on the DIY market.

I looked at some of the sites you mention but there seemed to be a preference for SIPPs and I think they are too complicated.

SIPPs have a lower level of consumer protection and lower regulatory and solvency requirements compared to a stakeholder pension or personal pension. This makes them better suited to the DIY market where the focus is very cost conscious.

BLB53

She is not in a company, just "plain" self-employed. I looked at some of the sites you mention but there seemed to be a preference for SIPPs and I think they are too complicated. I am the one doing the legwork as I being older am supposed to know more.

Sipps can be very simple, just get DD to open an account with the likes of AJ Bell Youinvest and then set up the DD to invest in a multi asset fund like Vanguard Lifestrategy.

Alternative, look at the robo advice route such as Moneyfarm or Nutmeg where they select the funds for you. You may like to read the article on DIY Investor
http://diyinvestoruk.blogspot.co.uk/2017/08/a-look-at-uk-robo-advisors.html

retiredinfrance

Yes, Bostonerimus, you are correct. And thanks. Trouble is, she is not that particularly interested and is very busy with the new selfemployment. I think I will just have to keep reading and hope I get something that I understand. One thing that caught my attention was that some companies really expected the client to transfer in the pension pots they had already built up . She has 10 years in a good defined benefit scheme and 3years as a part time teacher in their scheme and I think they are good enough to be left as they are in the meantime. She is continuing with the part time teaching and it's her other selfemployed half we now want to get covered.

retiredinfrance

Thanks Harry. The employer is a college , but she has a one year contract and not permanent. This suits her at the moment but I doubt if she sees herself still teaching at retirement age.Age 55 is fine and I can see her taking it later. When she was at university I paid all the missing years NI contributions so she has a full record there. Thanks.

retiredinfrance

Thanks, Dunstonh. Yes, we will look at making extra contributions. It was her accountant who suggested the pension for the selfemployed half.Thanks also for the information about the lower protection offered by a SIPP and I will check up on this.

retiredinfrance

Thanks BLB53. Thanks for the specific advice . I have already come across the Vanguard Life Strategy fund. I like the idea of a multi asset fund.I will read the article you suggest.