Stakeholders Pension

Sandeze

After some deliberation and helpful advice I have decided to go through Cavendish online and purchase a Stakeholders pension. My problem now is which company shall I choose and which funds do I choose, can anyone help?
Thanks

dunstonh

Only you can pick the funds. Everyone has a different risk profile and what is right for one, is not right for another.

A stakeholder usually gives you limited choice but look for a provider that has funds in most of the major areas. A fund range of 20 should really be your minimum. Ideally a spread of 5 funds/sectors should be your minimum, although it depends on your contribution.

Risk is a timescale issue as well. A far east fund is higher risk than a UK one but over the long term, the risk difference isnt as great as the short term.

Due to the increasing reduction of fund selection by the providers on their stakeholder product (which is likely to increase with the probable removal of rule RU64), I am finding personal pensions becomming more common. Especially in many cases, the funds can still be 1% AMC charged funds.

So, although I havent suggested any funds/providers, what i have said, should help you knock a few off the list.

EdInvestor

For info on what different pensions charge, try the regulator's site.

https://www.fsa.gov.uk/tables

Cheapest is not always best, as if the performance is poor, it won't make much difference.Ideally what you want is excellent performance from the investment, combined with cheap charges for the pension tax wrapper.

The performance of pension funds can be checked here: past performance is not necessarily a guide to the future, but it's probably better than nothing....;)

http://www.trustnet.com/pen/funds/perf.asp