Advice on starting pension in late 40s

Davefuller72

I would like some advice on starting a pension. I'm a complete newbie and I'm in my late 40s!
But on the plus side, I do own 2 properties with no mortgage on either.
I'm just looking to start small about £400-£500 a month. I'm really for recommendations on which pension companies to use?

torrence

Just start a SIPP. Keep the costs low, and put it in a low cost global fund index tracker such as those offered by Vanguard.
For a website with plenty of information try monevator.com they also have information comparing platforms and platform costs.
https://monevator.com/find-the-best-online-broker/

bostonerimus

I echo the comments of torrence, but will ask if you have access to an employer sponsored pension, and if you do, you should use that

Brynsam

If a SIPP looks a bit daunting, open a simple stakeholder pension for £35 online: https://www.cavendishonline.co.uk/stakeholder-pension and for now put your cash in the default fund while you hesitate and worry!

When you pluck up the courage to go the SIPP route (although you could, of course, do that immediately), there are no exit fees on a stakeholder when you transfer your pension savings to a SIPP.

Albermarle

I'm just looking to start small about £400-£500 a month

The main advantage of a pension is the tax relief and the pension provider will add this on for you ( and claim it back from HMRC) .
So you would need minimum earned income of up to £6000 pa .
Presumably if you have no pension at all you must be self employed , or maybe run a small business ?

Audaxer

Brynsam wrote: »

If a SIPP looks a bit daunting, open a simple stakeholder pension for £35 online: https://www.cavendishonline.co.uk/stakeholder-pension and for now put your cash in the default fund while you hesitate and worry!

I had a look at this link out of interest, but I can't seem to see details of a default fund. The Aviva Stakeholder Pension Key features document just refers to a fund centre with a list of funds to choose from. I expected to see on the website some ready-made portfolios at different risk levels. I may be missing something but it doesn't look any easier for a newbie than investing in a SIPP.

Davefuller72

Albermarle wrote: »

The main advantage of a pension is the tax relief and the pension provider will add this on for you ( and claim it back from HMRC) .
So you would need minimum earned income of up to £6000 pa .
Presumably if you have no pension at all you must be self employed , or maybe run a small business ?

Yes I'm self-employed and run a small business.

LHW99

Davefuller72 wrote: »

Yes I'm self-employed and run a small business.

Is that truly self employed, or employed by your own limited company?

Davefuller72

LHW99 wrote: »

Is that truly self employed, or employed by your own limited company?

I suppose employed by my own limited company

LHW99

Davefuller72 wrote: »

I suppose employed by my own limited company

Are you a director? - if the limited company makes the contribution for you, it can be deducted from the company's corporation tax bill.

Alexland

Audaxer wrote: »

I had a look at this link out of interest, but I can't seem to see details of a default fund.

On the application form Part 7 Investment Choice it says "If you don’t make an investment choice, we will automatically invest your payments in the Stakeholder Mixed Investments Annuity Lifestyle approach" and then provide a link to a website that provides the below guide which details the strategy and associated funds which change as you get closer to the target retirement date.

https://www.aviva.co.uk/adviser/documents/view/sp99252c.pdf

Aviva's stakeholder might not be the cheapest or offer the most investment choices but it's an alright good value choice with a simple all-in-one percentage fee structure (so no individual platform, trade and fund fees to consider) which means no need to maintain a cash balance. Also the government contribution is pre-funded so no need to remember to invest it a few months later, etc. Also the application form supports setting up regular employer contributions which might be suitable for the OP's circumstances.


Alex