Who has lowest charges on a stakeholder?

Red_Uakari

Hello there. Perhaps someone has a quick answer to the question in the title

Since I'll be saving for the next 30 years I'm intending to stick my money into
trackers for some time and see how they get on. So I'm not interested in
stakeholders that claim to have brilliant fund managers, or huge numbers of fund options (how would I know which to choose anyway?)

Instead I want loooooow charges.

I've found that Haregreaves and Lansdown offer a Norwich Union one for 0.85% annual charge, going down to 0.75% as the fund grows, and H and L also offering a Scottish Widows one at a flat rate of 0.78%

Does anyone out there know of a) lower charges or b) a site that gives tables for comaprison?

Thanks in advance

Red

shaunrc

Hi Red

Firstly I am an IFA so please do not take this post as advice as that has a specific meaning for a regulated person like me.

Actually the cheapest charges these days are with personal pensions.However they have routes to this which aren't always expressed in immediate up front charges.What I mean by this is that they offer bonuses if you keep paying into the plan say after 15 years. Another way that they can do it is to offer large fund discounts.

If you are looking over a period of 30 years these type of things can lead to much better value than initial amcs. As a tip the best clue is given by the reduction in yield figures rather than the intial amcs.

To give more of a clue I would need to know your monthly contribution,current age and planned retirement age.

Dithering_Dad

I'd be interested in the calculation for me...

My age:39, Monthly Contrib: £300, Current Pension pot: £83,000, Desired retirement age:60.

(Hope the op doesn't mind the slight hijack)

dunstonh

I agree with shaun. Personal pensions would be cheaper than stakeholder. Potential amc's at 0.3% on nil commission basis. Problem is that many of the online execution only providers only offer stakeholder or basic personal pensions and not the whole of market range.

I've found that Haregreaves and Lansdown offer a Norwich Union one for 0.85% annual charge, going down to 0.75% as the fund grows, and H and L also offering a Scottish Widows one at a flat rate of 0.78%

An IFA earning virtually full commission could match those so there isnt much of a discount there.

I'd be interested in the calculation for me...

DD, as a rough guide, if you have 20 years or more to retirement, then a "factory gate" priced personal pension will be cheaper than a stakeholder pension as the annual management charge doesnt pay towards the cost of advice or profit (in the case of the online providers the OP has mentioned).

shaunrc

Hi Dithering Dad

Firstly I am an IFA so please do not take this post as advice as that has a specific meaning for a regulated person like me.

This is an area I have been looking at and to give you an idea there is a personal pension which I have used for customers in your circumstances would pay me for giving advice but charge the customer an amc of 0.5%. So as a business I have been able to give someone improved terms whilst getting paid. This charge is for their internal funds but is still a wider choice than from a stakeholder.

Esssentially it works around your age and hence likely term to retirement and your fund size ( essentially they are looking for £50k plus ).

Only other factor is if there are any penalties for switching out of your existing plan.

EdInvestor

To get the full benefit of the low charges of tracker type investing you may be better investing via ETFs(exchange traded funds) which are cheaper than tracker funds in a maxi ISA and then shifting the money into a pension wrapper at a later date preferably when you are a high rate taxpayer.

Red_Uakari

Thanks team