Self-employed - what pension to choose?

kleshnia

Hi, i'm 30 y.o. and want to start paying towards my pension.
The only options I found are stakeholder or SIPPs for self-employed.
I'm not sure SIPPs option is for me as I don't know much about investing so I'm more leaning towards a stakeholder pension. Is it a good choice?
What are good and reliable providers? I can't find any..only Aviva, but the reviews are bad.

Brynsam

Stakeholder or NEST are both perfectly sensible options for someone of your age with no knowledge of investing. 

When you say the reviews of Aviva are bad, remember that people are rather more ready to comment negatively than positively. Why are the reviews bad - if people are commenting on fund performance (and remember that 'pensions' don't perform, it's the underlying funds you invest in which do that), could be they simply don't understand the choices they've made.

dunstonh

The only options I found are stakeholder or SIPPs for self-employed.

There is no pension type specific to the self employed.  All stakeholder pensions, personal pensions and SIPPs will cater for the self employed in exactly the same was as they do with the employed.

 I can't find any..only Aviva, but the reviews are bad.

Aviva have hundreds, if not thousands of pension types from over the decades.    Currently, they have about 4 different pension types available on retail.    Reviews on the internet are not the best way to purchase financial products.  How do you know the person making the review is talking about a modern product or a legacy product?  How do you know its not the person that is causing the problem (when you look at some fo the reviews, it is clear the problem is the person not the product).

Albermarle

Not a recommendation but this seems to be a simple product, with only five funds to choose from.
Legal & General - Your personal pension (legalandgeneral.com)

squirrelpie

"I don't know much about investing"

You don't need to know a whole lot about investing, but it's probably worth reading enough so you understand why and you feel happy making the odd decision that is required.

kinger101

How much do you wish to save annually toward your pension?
Are you a basic rate or higher rate taxpayer?

The LISA is also worth consideration for anyone who is a basic rate taxpayer, as it's more tax-efficient than the SIPP.  

kleshnia

squirrelpie said:

"I don't know much about investing"

You don't need to know a whole lot about investing, but it's probably worth reading enough so you understand why and you feel happy making the odd decision that is required.

would you say investing in SIPPs better than stakeholder pension?

kleshnia

kinger101 said:

How much do you wish to save annually toward your pension?
Are you a basic rate or higher rate taxpayer?

The LISA is also worth consideration for anyone who is a basic rate taxpayer, as it's more tax-efficient than the SIPP.  

Not much..probably around £30 a month - £360 a year
I have some debts i need to pay off..
I am a basic rate taxpayer
SIPO terrifies me is LISA better than stakeholder?
If I decide to relocate abroad, can I transfer any pension to that country?
What is the most reliable pension provider to use??

Albermarle

Lifetime ISAs: free £33,000 towards your first home or retirement (moneysavingexpert.com)
This explains how LISA's work and there is some info on how they compare to a pension. It might be a better/simpler option for the small amounts you can contribute .

Mick70

following advice from posters on here, I opened a vanguard sipp for my wife, was very easy to do (she is self employed but a low earner) ,  can only pay in what she earns each year ,  they do the investing and fees are low.
the govt adds the 20% tax relief so for us it makes more sense that just saving in an ISA ,  ideally i would like to pay more into it for her but as say we are limited by what she earns.
Worth a look into anyway, IMO

Mick

Albermarle

Mick70 said:

following advice from posters on here, I opened a vanguard sipp for my wife, was very easy to do (she is self employed but a low earner) ,  can only pay in what she earns each year ,  they do the investing and fees are low.
the govt adds the 20% tax relief so for us it makes more sense that just saving in an ISA ,  ideally i would like to pay more into it for her but as say we are limited by what she earns.
Worth a look into anyway, IMO

Mick

For someone under 40 with only modest amounts to save then a LISA is better as you still get the 25% government top up but no tax to pay on the way out.