Standard Life vs Nationwide stakeholder pension

billieboy_2

I’m thinking of taking out my own stakeholder pension at 47 with a view to retiring in 12 years when my husband is 60. His pensions are with Standard Life and Scottish Widows. It would appear that Standard Life has been doing better than Scottish Widows but, with Standard Life about to de-mutualise, would it be better to take out the new pension with, say, the Nationwide Building Society who don’t appear to need to de-mutualise in order to get good returns?

Anyone got any experience on how Nationwide compares to anyone else and what sort of service I could expect from them?

ReportInvestor

Hi billieboy (girl )

The analysis prior to your final question is not sound. The key factors will be charges and investment management performance.

Are your Std Life / Scot Widows comparisons between with with profits funds?

If you take out a pension with either of the above or with Nationwide it is unlikely to be a with profits policy if your IFA is on the ball, and Nationwide is not a mutual life insurer.

I personally wouldn't invest in a with profits pension, although the three strongest WP funds among the major players (not Scottish Widows or Standard Life) are all Plcs.

dunstonh

It would appear that Standard Life has been doing better than Scottish Widows

You need to be comparing like for like. Both Standard Life and Scottish Widows offer a very large range of funds. Although in the case of Scottish Widows, it depends which distribution channel you buy through. The direct version and the LTSB version has less funds available to it than the IFA version.

but, with Standard Life about to de-mutualise, would it be better to take out the new pension with, say, the Nationwide Building Society who don’t appear to need to de-mutualise in order to get good returns?

Nationwide do not offer a with profits pension and that would be the only way to benefit from a future potential demutualisation. Even then, the life insurance arm would be a subsidiary of the building society and possibly wouldn't qualify.

As reporter says, with profits is not a desirable option for many now and there are really only 2 providers left with a viable with profits solution (in my opinion). Scot Wid and St Life are not them.

Bank products tend not to be good value. On the whole they tend to have higher charges and poor performing funds.

Nationwide only offer 3 funds which is extremely dismal. A tracker, corporate bond and cash fund. The annual management charge is a flat 1% which can easily be beaten by a dozen or so mainstream providers. My opinion is that the Nationwide stakeholder is designed to be sold to people who know nothing about pensions. Anyone buying through a bancassurer tends not to know much about financial services products anyway so there is little point them offering more than they need to.

Standard Life's pension plan is better but the charges can still be beaten by other providers and the funds SL has available are just as available with the others.

billieboy_2

dunstonh wrote:

You need to be comparing like for like.

Thanks for your replies. Do you know of any websites where you can compare performances?

EdInvestor

https://www.trustnet.com

Lists most funds. Be sure to look in the right category ( pension,life,unit trust/OEICs etc.)