Start a New Pension or stick?????

Ystrad_Lad

I'm totally lost on where to go for good advice.

I'm 54 with a 3 year fixed contract from my current employer. I have a final salary local authority pension with 5 years' service and a separate AVC facility managed by Clerical Medical. I also have a Standard Life Stakeholder pension invested in their Equity Fund. This currently stands at £107,000 but seems to be falling on a daily basis. This was set up on the recommendation of an IFA in 2003 when he arranged for my other small pensions to be transferred in to it.

I'm a lower rate taxpayer and I want to save £500pm towards enhancing my pension.

I'm not convinced that I received good advice from the IFA and now don't know whether to start a new private pension, continue to contribute to the Standard Life Stakeholder or use the AVC facility and take the money out as a lump sump on retirement (which could be in 3 years time).

Any thoughts would be greatly appreciated!!!!

jonathon_hart

You might not be able to use the AVC facility as you no longer work for the employer.

EdInvestor

In any case you might be best to start putting additional savings in the maxi ISA ( 7.2k a year) and the same investments availale as for a pension, since you are a basic rate taxpayer with no employer contribution..

This ISA will provide tax free income - your pensions will be taxed (as will your state pension). With the ISA, you also keep control of the capital - with the pensions you lose it.

Use a discount broker which rebates charges such as https://www.h-l.co.uk

dunstonh

This currently stands at £107,000 but seems to be falling on a daily basis. This was set up on the recommendation of an IFA in 2003 when he arranged for my other small pensions to be transferred in to it

.

You may not follow the news but there has been a drop in the stockmarket recently. However, its only back to around 2006 prices and the gains you made between 2003 and 2006 would have been significant. You have to average out as the value of your investments will fluctuate. That is normal.

I'm not convinced that I received good advice from the IFA

On what grounds? Nothing in your post sounds like bad advice and you dont seem confident on what you are doing (i.e. talking about taking out another pension for some reason).

Use a discount broker which rebates charges such as www.h-l.co.uk

I dont see that as being a good solution. The OP is clearly confused and doenst understand investing. Telling the OP to go DIY could be a very expensive mistake.