We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Pension for 27yr old Son
Sanxxx
Posts: 21 Forumite
My Son is self-employed earning around the UK average wage, he currently has no present or past pension.
I'm going to persuade him to start one, even if only £50-100/month. I was thinking a SIPP with the likes of A J Bell/Cavendish/HL.
Q1 Is that the best option?
Whilst he might save regularly he certainly won't manage it.
Q2 Should the money go into a low cost tracker fund or is there a better alternative?
Q3 If a tracker....UK/Europe/World? or is it pot luck given the timeframe?
Thanks, Russell
I'm going to persuade him to start one, even if only £50-100/month. I was thinking a SIPP with the likes of A J Bell/Cavendish/HL.
Q1 Is that the best option?
Whilst he might save regularly he certainly won't manage it.
Q2 Should the money go into a low cost tracker fund or is there a better alternative?
Q3 If a tracker....UK/Europe/World? or is it pot luck given the timeframe?
Thanks, Russell
0
Comments
-
Similar position with my 3 children, currently considering the Fidelity SIPP option.
AIUI using ETFs/ITs/Shares the annual fee is capped at £45 and the dealing fees are 0.1%. Would use VWRL/HMWO and buy monthly.0 -
For a simple and easy option you might be better looking at a personal pension rather than a SIPP.
https://www.standardlife.co.uk/c1/pensions-and-retirement/saving-for-retirement/personal-pension-easy-option-features.page
or a stakeholder pension
https://www.cavendishonline.co.uk/stakeholder-pension0 -
Yes the Aviva stakeholder pension (signup via Cavendish) is very simple and will run on autopilot in the default strategy for years without any care or attention. It uses the same MyAviva login details as any car, home, life, etc insurance products he might have with them. The main downside is that it has a paper application process and a small initial setup fee.
The DIY SIPP option is more complicated requiring investment choices and management of a cash balance to pay the platform fees and possible penalty fees if he loses track of the cash position.
If he is running a limited company consider making director contributions for extra tax efficiency.
Also consider a S&S Lifetime ISA which has a 25% bonus and no tax on withdrawal from 60+.
Alex0 -
I would say yes, those pension options are good as all above.
If he wont manage it now, i suggest a Global (not UK or EU) tracker. Or a global multi asset fund if offered (high equity ratio)0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.6K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.7K Work, Benefits & Business
- 603.1K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards