Scottish widows

melaniesteer

I had to ring them recently, I have a stakeholder pension with them, they said it would be a good idea to move it to a retirement pension, I do not know the difference, I am married age 51 with a 18 year old daughter, the pot I gave with them is of the 60k mark what do you think 

Albermarle

Pension providers change their product offerings on a regular basis, especially when new legislation happens .
I think SW no longer offer new customers a stakeholder pension and their main product offering is their 'Retirement pension' 
In reality there is little difference from the customer point of view and it will be better to be in their main/current pension product when you come to take the pension. Just check that the charges are not any higher before agreeing to move. 

dunstonh

what do you think 

Getting better than a stakeholder pension on default SW terms is pretty easy to do.   Paying an SW sales agent to put you in the SW retirement account on a 60k value is not the best option available.

Mbeira

Stakeholder Pensions just invest in boring steady stocks, and I have no idea why anyone would want any different.  This is your pension after all.   Save the risky stuff for ISA's where any huge gains can be recovered tax free.  I've had an SW stakeholder since they first brought it out in 2001, when I left the RAF.  It'll be a nice enhanced annuity in fifteen years time. (I have MS)  I pay into it every month, a rising linked-to-inflation amount, and it's not a lot but that payment is ring fenced and goes out first whatever my circs.  Again, this is my pension (about one third of the total, actually).

Stakeholders were supposed to be for those who had irregular payment and rarely hit the yearly top allowance.  They have a limited charge structure, so you are not penalised for not paying in a lot, in fees.  

I do have an EM ISA which took a HUGE hit in April but is on it's way back up.  This is life with risky stocks.  Hey ho.  Did occur to me though that the drop would qualify me for Universal Credit, which would be a bonus if I needed it the next time the economy dies.  

dunstonh

Stakeholder Pensions just invest in boring steady stocks, and I have no idea why anyone would want any different.  This is your pension after all.   Save the risky stuff for ISA's where any huge gains can be recovered tax free.

Pensions and ISAs can share the same assets at the same costs.  The only real difference is the maturity process and taxation.  And pension trumps ISA in most scenarios if you are looking to take the money out in later life.

Stakeholders were supposed to be for those who had irregular payment and rarely hit the yearly top allowance.  They have a limited charge structure, so you are not penalised for not paying in a lot, in fees.  

Stakeholders were introduced to bring the charges in pensions down.  However, by around 2005-6 they were already being beaten in price by personal pensions investing in the same funds.   Nowadays, stakeholder pensions are generally regarded as niche. Good for small values maybe.

michaels

I recently moved the majority of my money out of a SW company pension where the total charge was 75 basis point sot similar investment sin a sipp where the charge is about 20 basis points all in - ie I have improved my returns by 0.5% per annum which probably means at least 10%

bigadaj

michaels said:

I recently moved the majority of my money out of a SW company pension where the total charge was 75 basis point sot similar investment sin a sipp where the charge is about 20 basis points all in - ie I have improved my returns by 0.5% per annum which probably means at least 10%

Is that not a bit apples and oranges, SW charges would be total as opposed to platform and fund in a sipp, 0,2% for a sipp is pretty low in total.

michaels

bigadaj said:

michaels said:

I recently moved the majority of my money out of a SW company pension where the total charge was 75 basis point sot similar investment sin a sipp where the charge is about 20 basis points all in - ie I have improved my returns by 0.5% per annum which probably means at least 10%

Is that not a bit apples and oranges, SW charges would be total as opposed to platform and fund in a sipp, 0,2% for a sipp is pretty low in total.

I was in a default SW fund - probably about VLS80 equivalent with a UK bias.  I have moved into a global equity fund and a bond fund so equivalent exposure (without the UK bias) and total charges are about 16bps, admittedly on a bigger pot than the OPs.