Looking for something new

Napista

Hi,

I have a small pension pot about £10k in People's Pension from previous employment and have continued to pay a nominal £5 a month into this. I now work somewhere with a DB pension which I pay into. I am a basic rate tax payer with a slightly below average salary, I can't see my income changing significantly over the next few years.

I'm keen to add a bit more into a DC pension pot that may help me retire a couple.of years early or offer a bit more comfort to my 60s if I'm still about. I imagine the people's pension isn't necessarily the best place and have read SIPPs mentioned frequently on the forum.

I'm still 2-3 decades away from retirement so ok with taking risks. I am looking for something that I don't actively manage (I don't think i have a good enough understanding) that I could ideally put one off payments in as and when rather than a monthly DD. People's pension isnt easy at all to put money in to so I don't bother and would like.something easier to manage that will be a good investment option. I have a S&S ISA with Nutmeg that I find easy to manage and guess I'm looking for a similar option for a pension for increased tax benefits and protecting for my future.

So in a nutshell, any recommendations of pensions for me to explore that aren't too pricey, I can pay into via one off payments and do so easily rather than a monthly DD that is suitable for beginners? 

Thanks for reading 🙂

MallyGirl

Most of the usual player are easy to manage in the way you suggest.
I am with Interactive Investor and can just contribute via my debit card. for the amount you have they wouldn't be the best choice as they have a fixed fee that would work out expensive - you need to find one that charges a percentage of the balance.
Once you have a SIPP you can invest in something risk appropriate - maybe HSBC Global Dynamic or Adventurous ? Possibly even a Global all equities fund?

Marcon

Napista said:

I am looking for something that I don't actively manage (I don't think i have a good enough understanding) that I could ideally put one off payments in as and when rather than a monthly DD. 

So in a nutshell, any recommendations of pensions for me to explore that aren't too pricey, I can pay into via one off payments and do so easily rather than a monthly DD that is suitable for beginners? 

Thanks for reading 🙂

SIPPs are one possibility, but a stakeholder pension is also worth looking at for simplicity (and unlike a SIPP, it must offer a default fund if you really don't want to take any investment decisions).

Albermarle

I have a small pension pot about £10k in People's Pension from previous employment and have continued to pay a nominal £5 a month into this. I now work somewhere with a DB pension which I pay into. I am a basic rate tax payer with a slightly below average salary, I can't see my income changing significantly over the next few years.
I'm keen to add a bit more into a DC pension pot that may help me retire a couple.of years early or offer a bit more comfort to my 60s if I'm still about. I imagine the people's pension isn't necessarily the best place and have read SIPPs mentioned frequently on the forum

Is there any possibility to pay for extra benefits in the DB pension? Or could you maybe transfer the £10-K into that? Often it is a good deal if it was possible.

It would not necessarily stop you retiring early, because you can usually take a  DB pension early.

Napista

Thanks for your replies, I'll have a look at options with a low percentage and also stakeholder pensions, thank you. 

I don't think there's an option to add into my DB pension but will explore, thank you.

Vanguard keeps coming up as a simple option, I'm considering getting a life strategy for S&S ISA from next financial year, are their pensions a possible option?

Nurse2047

Vanguard SIPP can invest in lifestrategy funds, set up a direct debit and forget about it 

ewaste

Worth keeping in mind the Age 55 protections for the people's pension. 

https://thepeoplespension.co.uk/minimum-pension-age-change/#:~:text=Some schemes, such as The,from 4 November 2021 onwards.

dunstonh

Peoples pension is better than most stakeholder pensions (not that there are many left).

Napista

ewaste said:

Worth keeping in mind the Age 55 protections for the people's pension. 

https://thepeoplespension.co.uk/minimum-pension-age-change/#:~:text=Some schemes, such as The,from 4 November 2021 onwards.

Thanks, this (and that it's as good as other stakeholder pensions) is really good to know, makes me inclined to keep what I have in there and potentially look for a SIPP in addition and look to invest in something like HSBC global strategy or vanguard life strategy which may see better returns.

Lots to think about!

Albermarle

Napista said:

ewaste said:

Worth keeping in mind the Age 55 protections for the people's pension. 

https://thepeoplespension.co.uk/minimum-pension-age-change/#:~:text=Some schemes, such as The,from 4 November 2021 onwards.

Thanks, this (and that it's as good as other stakeholder pensions) is really good to know, makes me inclined to keep what I have in there and potentially look for a SIPP in addition and look to invest in something like HSBC global strategy or vanguard life strategy which may see better returns.

Lots to think about!

Peoples pension only offer their own funds, they have  something similar to the funds you mention, but not sure they have performed so well recently. Worth checking anyway.
Investment funds | The People's Pension (thepeoplespension.co.uk)