DC and auto enrolment

DSFF

Hello,

First time posting. Never really thought about a pension before but am moving to a new company that offer a DC pension scheme at the minimum contribution of 3%. I will probably add 10% myself but want to know whether it’s best to keep the auto enrolment or generally switch to a different kind of DC. I don’t mind a bit of risk as have about 35 years to retirement.

MallyGirl

if you don't stick with the company one probably won't get the company contribution

DSFF

Ahhh thanks so it has to be the company’s chosen one for their part of the contribution.

Assume then that I can add 5% to this and then 5% to another if I wanted to diversify?

MallyGirl

Yes you can - with small value Its probably best to go for a SIPP with percentage based fees or for a Stakeholder pension

penners324

Your employer is very likely to only allow 1 pension company which will only really be an a pensions administrator.

When you get the details of who they use, setup your online account with that company. The pension company will offer a few (3 or more) pension funds to invest in.

This is when you decide on an aggressive or moderate fund for your pension to be invested in.

Eg my company use People's Pension, I have invested in an aggressive managed fund operated by State Street.