Pension suggestions

kerrjp

Hi Guys,

I have recently posted for some advice in the Savings and Investments Forum regarding my current situation. A big part of this was the fact that I am 36 and neither myself or my wife have a pension other than our state pension contributions. I am a contractor through my own Ltd Company to which we are both employees, I would like to open a pension and begin monthly contributions from my Ltd company as this appears the best way for me to get the pension ball rolling.

I have a couple of questions I would like to get peoples thoughts on:-

1. Is it best to open two pensions (i.e. one each) or would a single one suffice given that I plan to start contributing about 1k per month?

2. Can anyone suggest a good pension for our situation, I have been pointed at the Aviva stakeholder pension through Cavendish but wonder if anyone has any other views. I do not wish to get to picky about the funds and prefer a risk attitude based selection. We are currently saving in S/S ISA with vanguard in the Lifestyle80 fund just to give some context.

Please could you let me know your thoughts and feel free to read my other (rather long winded) thread to gain more insight if needed. I really am trying to get our hose in order starting now :-)

Thanks

dunstonh

1. Is it best to open two pensions (i.e. one each) or would a single one suffice given that I plan to start contributing about 1k per month?

You should balance your retirement provision between you as you both get a personal allowance in retirement which you will want to use up.

2. Can anyone suggest a good pension for our situation, I have been pointed at the Aviva stakeholder pension through Cavendish but wonder if anyone has any other views.

Stakeholder pensions were great in 2001 but largely a niche option now as personal pension and SIPPs offer better flexiblity, choice and lower costs in many cases.

However, to get yourselves up to the first £20k, anything would be fine really. You have some catching up to do.So, most important thing is to get started ASAP.

Albermarle

As said the choice of pension at this stage is a lot less important than actually how much you put in it.
You probably do not need any financial advice at this early stage as it is easy to set up a personal/Sipp pension up on line. Both are very similar really, certainly for someone at your stage of investing.
As an approx comparison, a personal pension is with usually with big well known names : Aviva; Standard Life etc . They will have guides to pick a simple fund that suits your risk profile or you can pick your self from a reasonable range .
With a SIPP , even the simpler ones are a little more focused on more active investors but the charges might be a bit less than a personal pension with a big household name , although they offer their own SIPPS as well.
In most cases you can go straight onto the pension providers website . You do not have to go through third parties.
Once your funds have grown in a few years time it is usually no problem to switch to another provider if you want,

xylophone

It seems that Vanguard will be offering a SIPP shortly.

https://www.vanguardinvestor.co.uk/need-help/answer/do-you-offer-a-pension-or-a-sipp

http://monevator.com/the-slow-and-steady-passive-portfolio-update-q3-2018/

Otherwise, for a modest SIPP, you could start with HL whose administration is very good.

https://www.hl.co.uk/pensions/contributions/employer

https://www.pensionbee.com/pensions-explained/pension-contributions/contributing-to-your-pension-from-your-limited-company?ast=LnS5l6

https://www.moneysavingexpert.com/savings/cheap-sipps/