Self employed pension

xylophone

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

may be of interest.

drummer_666

dunstonh wrote: »

Nest take 1.8% of each contribution and charge 0.3% p.a.
On a simple pension arrange (comparable with NEST) an IFA would probably cost around £500 (which can be collected via the pension over 12 months - therefore giving tax relief on the fee) and cost around 0.28% p.a.

So, the IFA would have that initial hit in year one but not after that. Whereas NEST is 1.8% of every contribution.

Ok thank you, that's crystal clear. So with those figures there over 30 years even just paying in 3k each year I'd be over a grand better off using the IFA. That's before any interest and profits, so overall a much much better financial choice.

dunstonh wrote: »

A mix and match is almost certainly going to be the best option (state pension and individual pension using up your personal allowance in retirement with LISA paying its income tax free).

I expect the tax free allowance will be a fair bit higher in 30+ years. When it says I am to expect around an 18k pension, is that in today's money or is that 18k plus inflation? If it's 18k then I'm guessing the personal allowance will be around 15k by then, so I wouldn't actually need all too much in my ISA. However I think it would be wise to use the LISA max amount of 4k, as am I right in thinking that I can add a bulk payment to my pension in the future (where obviously I can't with the LISA)

dunstonh wrote: »

A DIY stakeholder would be about 0.6% p.a. The DIY market doesnt offer personal pensions. They are only available via IFAs.

If opening a DIY stakeholder would there typically be a fee per contribution, as with NEST? If not this looks a better overall financial deal than a pension plan with an IFA.


I get it a lot more now. You have the pension platform (cup) and then the funds (liquid).

Thank you so much, my brain is slightly less frassled now. I may sleep tonight

xylophone

Stakeholder rules here

https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/contract-based-schemes/stakeholder-pension-schemes?moreInfo=4

It would be possible to invest in Vanguard Funds ( and the other funds mentioned in Monevator article) through an HL SIPP with a 0.45% charge.

https://www.hl.co.uk/pensions/self-employed

You could set up a regular saving plan within the SIPP - see

https://www.hl.co.uk/investment-services/vantage-service/regular-savings