Siblings pension

garrob

Hello, I would like some current advice on pensions for my kids please.
My Daughter who is 21 qualified as a Midwife in September 2023 and started working for the NHS in October 2023.
My Son is 20 and is in his 3rd year of an Electrician apprenticeship with the local Council. Both of them will have pensions with the jobs they are in but the 2 of them are keen to have a private pension also.
my question is what company and fund should I go with? I know you can’t give advice but a few pointers would be gratefully appreciated.

Many thanks

dunstonh

my question is what company and fund should I go with?

There are 30,000 odd investment options in many modern pensions.    You haven't given us any information to help filter those down.   As it stands, you may as well be asking us to pick a number between 1 and 30,000.

There is no one-size-fits-all answer to this.  It depends on a range of things.

In addition, why pension and not LISA?  And why PPP and not the in-house additional pension options?     Some of the in-house options can be very good value for money if they fit their objectives. Whilst other in-house options are old fashioned and limited.      Hence, why knowing the objective is important to the answer you want.

[Deleted User]

NHS Pension and LGPS, what a great start for them both.

I would be looking to maximise these before investing elsewhere.

Do they plan to buy homes in the future?

A LISA might be preferable to a second pension.
Similar benefits when paying in but more flexibility and potential tax savings when taking out later in life, particularly if they build a good work pension now (why put it all in pensions that might be taxed, when a LISA would be tax free at 60)

garrob

Thank you for your replies. They both have a Lisa each already and have savings. They really want to do some travelling and maybe work in another country so that is one of the reasons for getting a private pension. It would be something along the lines of open it and leave it to develop. A fund like Vanguard life strategy etc.

barnstar2077

They could do a lot worse than just using the Vanguard platform and shoving everything into Vanguard's FTSE Global All Cap index fund (accumulation.)  It is what I am doing.  I chose that fund because it mimics the make up of the whole of the market better than their Lifestrategy funds, which have more in the UK.  The fund I mentioned is also 100% equities, which is good as they have a 30+ year time line.  The fund will go up and down a lot, but should provide a good return in the long run.

Also, if they squirrel something into Vanguards stocks and shares ISA, in the same or similar fund, they can access the money earlier than their pension and give themselves a bit more flexibility in their plans.

dunstonh

garrob said:

Thank you for your replies. They both have a Lisa each already and have savings. They really want to do some travelling and maybe work in another country so that is one of the reasons for getting a private pension. It would be something along the lines of open it and leave it to develop. A fund like Vanguard life strategy etc.

When do they want to do that travelling?

garrob

When do they want to do that travelling?

Probably in 2025 I would imagine, that would give my Daughter a bit more experience and same with my Son.
Many thanks for all the comments I really appreciate your help.

Moonwolf

For the NHS it might be worth considering the NHS scheme and then moving it later.  The costs aren't the cheapest but are not terrible and it has the benefit of coming out of salary before tax and NI.

https://www.nhsbsa.nhs.uk/member-hub/increasing-your-pension/money-purchase-additional-voluntary-contributions-mpavc

https://workplace.standardlifepensions.com/nhsgavc/plan-details

From that link you can also find the other options for additional NHS pension.

Albermarle

garrob said:

Thank you for your replies. They both have a Lisa each already and have savings. They really want to do some travelling and maybe work in another country so that is one of the reasons for getting a private pension. It would be something along the lines of open it and leave it to develop. A fund like Vanguard life strategy etc.

You are probably aware of this but just to make sure.

Public sector pensions like the NHS and Local Government ones are very desirable to have, and it is a big positive of having a public sector job.
That is because they give you a guaranteed inflation linked pension income linked to length of service and salary . This is very expensive to provide for the employer, and nearly all similar private sector schemes have shut down due to the cost.
Adding small amounts to a personal pension or LISA, is never going to come close to providing more than a small fraction of the benefit of the NHS or LGPS pensions. It is usually estimated that the NHS pension is worth around 25% of salary

In any case if they are based abroad I am pretty sure that no UK pension provider ( or LISA provider) would accept contributions from them whilst they are abroad, and for sure they would not be eligible for any tax relief .

garrob

Thank you Abermarle. I was not aware of this, thank you for bringing it to my attention.