Which Pension to choose?

Hirsty_2

I have no pension to date, but now I have just started a full time job £18,541 p.a, my empolyer will pay 6% towards a pension. I am 42 next month and have no idea who or what is the best pension to start or how much to put in it? I have been told a Stakeholder pension may be the best option? Any advice or help would be much appreciated.

dunstonh

have no idea who or what is the best pension to start or how much to put in it?

There is no one best option. There are a variety to suit different requirements.

The free money of 6% from employer is great. How much you should pay would depend on how much income you want in retirement.

You say you have no pension provision so at the moment you are looking at a basic state pension of £4500 a year if you get full qualification (you could get a little more if you have SERPS/S2P/Graduated but dont worry about that too much at this stage as they are typically quite low). So, how much more than that do you want to have? Thats really the starting point.

I have been told a Stakeholder pension may be the best option?

If you are not going to use an IFA, you are not experienced with investments and intend to go DIY then you are best with a stakeholder as there is less you can get wrong compared to the other options. If you want help, get a local IFA to sort it all out for you.

Hirsty_2

Thanx for that dunstonh :beer: As I am a single mum could I get free IFA? worth a shot!

dunstonh

Ask the IFA to work on commission basis and you wont have to pay them. The provider does. It comes out of the annual management charge. Basically the old fashioned way but almost certainly the best way in your case.