Best option for me?

richierobot

Hello experts.

Im hoping for some advice. I currently have a Scottish Widows pension as well as a Scottish Widows Stakeholder penson. I only put under £60 a month in both but after receiving a recent statement my pension will be all of £1920 per year! To me its such a false ecomoney I may as well open a seperate bank account and put it in there.

I am completely clueless when it comes to things like this so im asking if anyone has some advice on what I should do. Why i got sold two pensions im not sure, probably led up the garden path by Lloyds. Perhaps I should go for an ISA each year. I could certainly contribute far more than I am currently.

Any advice would be gratefully received.

jem16

It's not the pension that is losing money or making money - it's what you have invested inside it that counts, i.e. the funds.

Both an ISA and pension are simply wrappers. Neither will make more or less than the other. What kind of ISA are you talking about? If you mean a cash ISA it's totally unsuitable for retirement as it won't grow enough above inflation.

What matters most in both cases is that you invest in the right funds within the warpper and that you invest a decent amount of money. Less than £100pm won't go that far.

richierobot

Thanks Jem 16. Would it make sense to have just the one pension and put say £200 in it?

jem16

Your SW personal pension will probably have access to better funds and would probably be the best place for £200pm.

Why not get an IFA to look at your options and decide what would be best for you?

dunstonh

Why i got sold two pensions im not sure, probably led up the garden path by Lloyds

If at the same time then no reason at all. Although bank staff are targetted on policy count as well as overall earnings.

only put under £60 a month in both but after receiving a recent statement my pension will be all of £1920 per year! To me its such a false ecomoney I may as well open a seperate bank account and put it in there.

Investments zig zag over the years but historically outperform savings accounts over the long term but may not in the short term.

Whilst your value has gone down in recent months, the number of units you are now buying is much greater and having drops like this in the early years isnt great now but in the long run it is brilliant news as those units you are buying 20% cheaper (currently) will make the most money in the long term.

So, in years of zags, remember that there will be zigs and you need to average them out.

I do suggest you get an IFA to look at it though at £60 into two different SW pensions is daft. Plus, being lloyds bank recommendations means that they will not be invested in the best way.

richierobot

Thanks everypne, where would be the best place to find a reputable IFA? Talking wth my wife she would like her pension looked at also. Can we combine?

jem16

http://www.unbiased.co.uk/ is the best place to start unless you have a recommendation from a friend.