Martin - Any chance of an update to the pension article?

BenL

Martin

I've been reading the pension article on the site but its over 2 years old now.

Any chance of an update to guide me through the pensions mess??

Cheers

Ben

dunstonh

Probably not worth doing much updating at this time. Many of the rules are changing in April 2006 and the final bits should be in place very soon. Better to update the information after that time.

MSE_Martin

The pensions article is on the cards for an update - though not that much has actually changed to be honest!

BenL

Is it worth holding off getting a stakeholder pension until after "A" day??

I would be getting a standardy sort of one from Norwich Union, scottish Widows or Standard life from Martins recommendations probably.

I've got a final salary scheme on hold from my ex employer so I do have something.

I've just moved jobs and my company doesn't put in to a pension. The only thing they do is pay the management fee.

Apparently no-on or very few people in the company have taken up the work offered one with Fidelity.

I would rather go with NU through Cavendish and keep it seperate.

Ben

dunstonh

Is it worth holding off getting a stakeholder pension until after "A" day??

No. The time to get a stakeholder on best terms was before April this year. Some providers havent altered their products yet to match new stakeholder charging allowances yet so its not too late if you decide a stakeholder is the best option for you.

I would be getting a standardy sort of one from Norwich Union, scottish Widows or Standard life from Martins recommendations probably.

Norwich Union stakeholder is now one of the worst out there since they removed all the decent funds from the stakeholder. Their Personal pension is a much better bet.

Standard Life funds are ok but the charging structure is basic 1% and can be bettered.

Scottish Widows also have good funds but a basic 1% charge and can be bettered. Their PPP matches the stakeholder but has a better range of funds.

I would rather go with NU through Cavendish and keep it seperate.

Why? What reason would YOU pick for doing NU? personally I cannot see any justification for NU stakeholders now.

EdInvestor

Hello Ben

BenL wrote:

I've just moved jobs and my company doesn't put in to a pension. The only thing they do is pay the management fee.Apparently no-on or very few people in the company have taken up the work offered one with Fidelity.

Do you know what funds are on offer from this Fidelity scheme at work? This offer might be quite a lot more attractive than it looks.

BenL

Thanks for the pointers Dunstonh.

I'll steer clear of NU.

Can you tell me which Companies/funds are the best at the moment for Stakeholders or is this info something you hold onto for your paying clients??.

Editor, I've checke dthe paperwork that came through and I was wrong, the provider is Friends Provident. The annual charge is 0.45% but my work will be paying that.

The funds they do from high risk to low is

European
North Americsa
Pacific Basin
Overseas Equity
UK Equity
UK index tracking
Managed
Stewardship
Stewardship maanaged
Property
Annuity Protector
Fixed Interest
Index Linked
Cash

I'm 24 at the moment so 40+ years to get this built up.

I guess I might have to stump up and go see an IFA for some advice on this but I worry about motives of some people, better ask my dad if he can recommend anyone.

Thanks all for your assistance.

Ben

dunstonh

I cannot give recommendations via the website as that would breach FSA rules. However, looking at what you have available, the following comments are appropriate.

FP are a very good pension provider and have excellent service. The range of funds there is from their NGP range which is very good. The same funds are on their stakeholder range for individuals.

FP low risk funds are particulary good (index linked and property in particular). The other funds are on par with what you would expect with other decent stakeholders.

You could pay for advice but I can tell you now that an IFA will not set up a stakeholder pension for you if they know you have the above available. There is no way to justify doing anything other than joining the works scheme. So, paying for advice would be a waste of money.

Your employer should be commended for arranging a good provider and paying the annual management charge making it zero cost for you. It may not be as good as a full occupational scheme but its still free money.

If you were to leave the employer at a later date, the pension can accept your own personal contributions or can be transferred without charge to another scheme or can have another employer to pay into it.

EdInvestor

Ben

dunstonh wrote:

FP low risk funds are particulary good (index linked and property in particular). Your employer should be commended for arranging a good provider and paying the annual management charge making it zero cost for you. It may not be as good as a full occupational scheme but its still free money.

Agreed.Go for it ( you would be surprised about how much you will save by having the company pay the AMC :eek: )

DH has certainly mentioned the right funds, see this link:

FP pension funds

Half your money into each of those and you should be OK.

Use you ISA allowance for stockmarket investments as well, if/ when you can afford it.

BenL

Thank you very much.

Ben