Where to begin

mealmond

Hi

I'm now 40, 41 in July without a current pension.

I have an old Zurich Personal pension, with a value of about £9.5k, which I have not paid in to for many years.

Other than that I would be relying on the state pension, I know not a very good position.

I am aware I am in a poor position, I seem to spend a long time researching what to do next, but then do nothing, and the years are rolling by.

My first though was just to start paying into the Zurich Pension again, I have had Legal and General compare if it would be better to start a new stakeholder pension with them, they took 9 months to look into it and came back and said I would be better with staying with Zurich, too much time wasted there.

I have also read on this forum about Stocks and Shares ISA's but I worry I may be tmepted to access the money.

I am aware of the pension changes in 2012 and my thought was to wait until then, but that is even more years wasted.

I am employed and my comany does not have a pension available.

I would be looking to pay in £100 at first, with the payments raising to cover inflation and I am also looking to put 50% of any extra wage increases into the plan , there is at least one a year.

I know the payments are in no way enough, but it would be what I afford, within my budget.

I was just wondering if anybody can help me through the smog, and if nothing else, just help me to make my mind up and get the thing started before another few years have gone by.



Thanks


Martin

Becky_2

Hi Martin!

Personally I would contact an Independent Financial Advisor who specialises in pension who can help you to move forward and would be the best person to find you the best pension according to your cirumstances. In the meantime why not put the £100 into an ISA while you are thinking what to do?

Good luck.

Becky

EdInvestor

Your state pension might be a lot higher than you think because of SERPS. You need to find out more about that first by calling up these people:

www.thepensionservice.gov.uk.

mealmond

Thanks for the two replies.

My state pension should be ok, I have worked since I was fifteen and have paid all my national insurance payments.

I seem to have spent many years trying to decide what to do, other than when I was very young and started a pension before I could realy afford it and then stopping the payments.

I think I am now leaning towards a stocks and shares ISA, paying in a regular amount monthly and making an increase at least twice a year.

The only thing that conerns me now about that option is that whichever ISA I take up, would I have to keep that account for as long as I am saving, my working career.

I was thinking I could open a fresh account each year, that worried me as well, as the thought of having lot's different accounts did not sit well.

However, on a thread here, I did read you can only have one account, so if that is the case how do you choose the best, to get the best return considering how important the money is.

I would also like to go for the best ISA to get the best return, taking a few risks in the early years and moving it to something safer when I get nearer to retirement.

I have probably over complicated everything.


I am looking to start paying in to an account in four months time, so I suppose for all the delays at least I have some time to think what I am going to do.

In a way, once it is all started I will be much happier and whatever results are at the other end, I will live by.



Martin

dunstonh

The only thing that conerns me now about that option is that whichever ISA I take up, would I have to keep that account for as long as I am saving, my working career.

And through retirement until the day you die. You can switch and transfer the holdings to suit lifestyle changes (such as growth to income) but the money stays in ISA.

I was thinking I could open a fresh account each year, that worried me as well, as the thought of having lot's different accounts did not sit well.

Modern investing utilises fund supermarkets. One administrator (the fund supermarket) but access to 1000 funds from all the different fund houses.

mealmond

Thanks dunstonh, I think a small amount of fog is lifting, although all this reading, hurts after a while.

So, I look for a Fund Supermarket, I will look around this forum for advice, and arrange the best deal available at this point, explain what I would like the funds to do and how much I want to invest each month and then let the process begin.

I am aware of the limit each year that you can invest, I doubt if I will even go close.

I will look for something that can be managed online, at least then I can moniter the progress.

As I said, in the early years, I would like to invest in high risk, in the hope of better returns, and then close to retirement, lower the risk.

I realise the money is for the long term and must not be touched.

I will spend the next fours months, before I can begin, doing the research and if my head has not dropped off by then, I should be on my way.

I only wish I had either kept going with a pension years ago or at least relised where I would end up at 40, I'm not the first, nor the last, but better late than never.



Thanks


Martin