Pension Types and where to start

sometime_soon

Hello. So having previously gained some very helpful opinions on starting our first pensions late, I am now looking to do just that. Spoken to a couple financial advisors to arrange an appointment but both so far don’t seem to want the business which I hadn’t expected! I am guessing this is because of the commission based scenario on a short length of time for the pensions to run? Possibly also waiting for the dreaded budget. Will obviously try some more because having looked at it myself, I have no knowledge of investments etc so can’t really see a SIPP is a good idea if I know absolutely zero about these things? 

Have looked at Aviva ,HL, A J Bell and a friend recommended Royal London but that seems to be only through advisors. And to be honest I am just nervous about picking the wrong thing and being stuck with it. 

To recap, 50 & 54 in age. Self employed. Want to pay some of our savings into both as maximum sums in the first couple years or so to make us more tax efficient. Very likely to go into higher tax threshold this year. 

Any personal experience knowledge would be gratefully received ! 

Marcon

sometime_soon said:

Hello. So having previously gained some very helpful opinions on starting our first pensions late, I am now looking to do just that. Spoken to a couple financial advisors to arrange an appointment but both so far don’t seem to want the business which I hadn’t expected! I am guessing this is because of the commission based scenario on a short length of time for the pensions to run? Possibly also waiting for the dreaded budget. Will obviously try some more because having looked at it myself, I have no knowledge of investments etc so can’t really see a SIPP is a good idea if I know absolutely zero about these things? 

Have looked at Aviva ,HL, A J Bell and a friend recommended Royal London but that seems to be only through advisors. And to be honest I am just nervous about picking the wrong thing and being stuck with it. 

To recap, 50 & 54 in age. Self employed. Want to pay some of our savings into both as maximum sums in the first couple years or so to make us more tax efficient. Very likely to go into higher tax threshold this year. 

Any personal experience knowledge would be gratefully received ! 

Maybe start by reading this: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/pensions-for-self-employed-people 
and https://www.moneysupermarket.com/pensions/?utm_source=google&utm_medium=cpc&utm_campaign=16527995193&utm_id=16527995193&utm_term=compare%20best%20pensions&gclsrc=aw.ds&source=GOO-0X0000048C2DEA46A5&gad_source=1&gad_campaignid=16527995193&gbraid=0AAAAAod6nXFcB17d1AniZSdyquulSMLb5&gclid=Cj0KCQiAxJXJBhD_ARIsAH_JGjggAmgnIlnmvo0v-PBVQIoNfgWhpRkCbBtROvH7dvLGCVjjane6LVwaAr1NEALw_wcB

If in a little while (or a longer while) you decide you are 'in the wrong thing', you can always transfer it to another pension plan.

dunstonh

 I am guessing this is because of the commission based scenario on a short length of time for the pensions to run? 

Commission hasnt existed since the end of 2012.  So, no, it wont be due to that.

 Possibly also waiting for the dreaded budget. 

The Budget has made firms busier than normal.

Many firms have minimum levels of investment as they are running at or above capacity and don't have much room to fit in a smaller investor.  That is probably the more likely reason.  

LHW99

Start with a personal pension?

https://www.standardlife.co.uk/pensions/personal-pension?utm_source=money.co.uk&utm_medium=affiliates&utm_campaign=private-pension

https://www.pensionbee.com/uk/plans
Not saying either are ideal, but once you start, the moneys can always be transferred, either by yourselves or by an IFA. (Gotta say it - the best time to start a pension was 20 years ago, the second best time is now  )

sometime_soon

dunstonh said:

 I am guessing this is because of the commission based scenario on a short length of time for the pensions to run? 

Commission hasnt existed since the end of 2012.  So, no, it wont be due to that.

 Possibly also waiting for the dreaded budget. 

The Budget has made firms busier than normal.

Many firms have minimum levels of investment as they are running at or above capacity and don't have much room to fit in a smaller investor.  That is probably the more likely reason.  

Thanks- Shows how far out of the game I am! 

sometime_soon

Marcon said:

sometime_soon said:

Hello. So having previously gained some very helpful opinions on starting our first pensions late, I am now looking to do just that. Spoken to a couple financial advisors to arrange an appointment but both so far don’t seem to want the business which I hadn’t expected! I am guessing this is because of the commission based scenario on a short length of time for the pensions to run? Possibly also waiting for the dreaded budget. Will obviously try some more because having looked at it myself, I have no knowledge of investments etc so can’t really see a SIPP is a good idea if I know absolutely zero about these things? 

Have looked at Aviva ,HL, A J Bell and a friend recommended Royal London but that seems to be only through advisors. And to be honest I am just nervous about picking the wrong thing and being stuck with it. 

To recap, 50 & 54 in age. Self employed. Want to pay some of our savings into both as maximum sums in the first couple years or so to make us more tax efficient. Very likely to go into higher tax threshold this year. 

Any personal experience knowledge would be gratefully received ! 

Maybe start by reading this: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/pensions-for-self-employed-people 
and https://www.moneysupermarket.com/pensions/?utm_source=google&utm_medium=cpc&utm_campaign=16527995193&utm_id=16527995193&utm_term=compare%20best%20pensions&gclsrc=aw.ds&source=GOO-0X0000048C2DEA46A5&gad_source=1&gad_campaignid=16527995193&gbraid=0AAAAAod6nXFcB17d1AniZSdyquulSMLb5&gclid=Cj0KCQiAxJXJBhD_ARIsAH_JGjggAmgnIlnmvo0v-PBVQIoNfgWhpRkCbBtROvH7dvLGCVjjane6LVwaAr1NEALw_wcB

If in a little while (or a longer while) you decide you are 'in the wrong thing', you can always transfer it to another pension plan.

Thankyou. Yes I had a good read through of those before which is why I opted for a financial advisor but that seems just as difficult to find. I did also use the “unbiased” site option to locate an advisor but never heard back, most likely for the same reason that it is not worth their while! 

SVaz

You can still choose a low charge Sipp and simply pick a fund that aligns with what you want,  so if you want an annuity for guaranteed income when you retire,  you choose a ‘lifestyle’ type fund that derisks into Bonds as you age.
Most pension firms have funds suitable for people with no investing knowledge.  

This gives a good explanation >>>>>

https://www.fidelity.co.uk/funds/navigator/

dunstonh

 I did also use the “unbiased” site option to locate an advisor but never heard back, most likely for the same reason that it is not worth their while! 

Unbiased is no longer an IFA directory.  It includes FAs now and it costs a fortune for a paid listing.  This has priced out the small local IFA firms, leaving national and regional salesforces on the list.

Many of those entries have no local office but pay to be in every postcode (or a large range of postcodes).  So, if they get someone enquiring via unbiased, you could be 100-200 miles from their nearest agent, and if your value is low (which typically means the fee would be low), there isn't much incentive for them to travel that far.

At the bottom of the Unbiased page, where the firms are listed, there is an option to include firms that have not paid to be listed on Unbiased.  Except it's not called that.  It's called "show only advisers available for contact".  If you untick that, then all your small local IFA firms will appear.  You may get better luck with a small local independent who is near to you rather than a salesforce rep that has drive 150 miles to see you.

sometime_soon

dunstonh said:

 I did also use the “unbiased” site option to locate an advisor but never heard back, most likely for the same reason that it is not worth their while! 

Unbiased is no longer an IFA directory.  It includes FAs now and it costs a fortune for a paid listing.  This has priced out the small local IFA firms, leaving national and regional salesforces on the list.

Many of those entries have no local office but pay to be in every postcode (or a large range of postcodes).  So, if they get someone enquiring via unbiased, you could be 100-200 miles from their nearest agent, and if your value is low (which typically means the fee would be low), there isn't much incentive for them to travel that far.

At the bottom of the Unbiased page, where the firms are listed, there is an option to include firms that have not paid to be listed on Unbiased.  Except it's not called that.  It's called "show only advisers available for contact".  If you untick that, then all your small local IFA firms will appear.  You may get better luck with a small local independent who is near to you rather than a salesforce rep that has drive 150 miles to see you.

Thankyou that’s very interesting. Not quite how it’s pitched and I was not looking for a national firm, just a local IFA which I was struggling with, so glad they didn’t bother getting back now. Moving towards DIY now it seems!