Any high rate perivate pension schemes you know of?

Maisiemoo_3

Hi - I am looking for a realy good pension scheme to invest in as I am not getting any younger(!) However, I am a complete novice and need to wade through all the information somehow!

What is the highest rate pension scheme around right now? Or am i better opening a good savings scheme? if so, are there any available of over 65?

All advice greatly received!

dunstonh

Pensions allow you to invest in a range of investment funds. There is no such thing as a highest rate as they work differently to savings accounts. You have thousands of investment funds covering most investment areas and risk profiles.

Generally, you look for low charges, decent fund selection (so you dont put all your eggs in one basket) and good service. The novice, looking at doing it yourself, should look towards a stakeholder pension rather than one of the other types (at least to begin with).

Pensions get tax relief on your contributions, which is a major perk. The compound effect of growth on that tax relief makes it better than ISAs from an investment point of view. The negative is that you cannot access the money that is in the pension and when you choose to mature the pension, you can only take 25% of the value back as a tax free sum with the rest used to provide an income (which is a negative but then you are looking to get an income in retirement after all).

Often a combination of ISA and pensions is desirable but it all depends on your age, your partner's provision (if applic) and the amount you are planning to save.