47 No Pension

Phil_2020

Hi

I am 47 and want to start a pension scheme, I have about £600 pcm to invest. I own my own business and am looking for some advice.

Cheers


Phil

Bravepants

Hmmmm...take a look at this:


https://theescapeartist.me/2019/11/09/how-to-build-a-compounding-machine/

xylophone

Sole Trader? Limited Company?

https://www.itcontracting.com/financial-services/pension-contributions-and-tax-relief-for-limited-company-owners/

https://monevator.com/low-cost-index-trackers/

Remember that the £40,000 mentioned is the gross amount - SIPP/personal pension contributions are paid net and the pension provider claims basic rate tax relief - any higher rate relief can be claimed through Self Assessment.

If unsure, you can consult an IFA.

https://adviserbook.co.uk/

Phil_2020

Where's best to get a pension? should I go to my bank or ask a financial advisor or try to find one online?

Part of me thinks a IFA but i'm under the impression i'd have to pay ongoing fees to the IFA & the pension fund. Is my assumption correct and is it worth it?

Thanks

Phil_2020

It's a ltd company

Bravepants

Don't get one from your bank, the fees are likely to be expensive!

jaybeetoo

Phil_2020 wrote: »

It's a ltd company

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

SonOf

Just to be clear, the OP is not self employed. He is a company director. The options for directors differ to the self employed.

Prism

Phil_2020 wrote: »

It's a ltd company

You can make direct payments from your limited company into your chosen pension. You class those payments as company expenses and therefore pay no corporation tax on them. I do mine monthly into Youinvest but there are many other choices. What you will need to decide on is which fund (or funds) to invest in with those contributions. Keep it simple.

Albermarle

Part of me thinks a IFA but i'm under the impression i'd have to pay ongoing fees to the IFA & the pension fund. Is my assumption correct and is it worth it?

All pension funds have charges , it can't be avoided. However there is a large range from typically 0.4% to 2 % .
Regarding whether paying an IFA an ongoing % charge is worth it . Let's just say on this forum there are some differing opinions...…….
You can pay an IFA a one off charge for a one off review as a alternative.

Bravepants

I think if you have several £100k or millions, it's probably worth paying an IFA on an ongoing basis. If you are just starting out with your own standalone pension, because you have no other pension provision, then as Albermarle says, maybe worth paying for a one off review.