Best stakeholder pension?

Costy · 3 September 2017 at 10:09AM

I want to start a stakeholder pension for my son, who has learning difficulties. I will also have to start one for my other son, who doesn't, because it wouldn't be fair otherwise! They are 23 and 21, my business is doing well at the moment, and I want them to benefit from the sort of financial planning that I made when I was their age. So, I want stakeholder pensions, what sort of charges are good? My eye was drawn to Virgin, as they already have ISAs with Virgin, they want 1% a year, is that good?

firefox1956 · 3 September 2017 at 10:29AM

Who says that Stakeholder Pensions are the best option for your sons ??
Just because a Stakeholder pension was good for your situation it may not be for your two sons.
If your business is 'doing well' you would be better getting paid for professional advice for your sons.
My opinion only of course.

bigadaj · 3 September 2017 at 11:19AM

OP, how much are you thinking of contributing?

Costy · 3 September 2017 at 11:47AM

I don't have a stakeholder pension, and I work like a dog, strangely, the harder I work, the better I do :-) - you have attitude Firefox.

I want a stakeholder pension so that I can pay in variable amounts when I am doing well and when not so well, likewise when I retire they can do the same.

Bigadaj I was thinking of a lump sum of £1k to start off, and £100 a month each for now.

xylophone · 3 September 2017 at 12:05PM

https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

Be careful when making provision for a child with learning disabilities.

(Effect on means tested funding.)

dunstonh · 3 September 2017 at 12:08PM

1, my business is doing well at the moment, and I want them to benefit from the sort of financial planning that I made when I was their age. So, I want stakeholder pensions, what sort of charges are good

There are not many stakeholder pensions left nowadays. However, Virgin is about the worst one out there.

So, I want stakeholder pensions, what sort of charges are good?

0.55% for small values.

and I want them to benefit from the sort of financial planning that I made when I was their age.

Yes, the younger you start, the cheaper the monthly contributions can be for the rest of your life (as long as you inflation link the contributions).

firefox1956 · 3 September 2017 at 12:44PM

Costy wrote: »

I don't have a stakeholder pension, and I work like a dog, strangely, the harder I work, the better I do :-) - you have attitude Firefox.

I want a stakeholder pension so that I can pay in variable amounts when I am doing well and when not so well, likewise when I retire they can do the same.

Bigadaj I was thinking of a lump sum of £1k to start off, and £100 a month each for now.

I find your reply to my sensible comments on your original post to be extremely rude & rather offensive.
Have a good day my friend.

cloud_dog · 3 September 2017 at 1:37PM

Costy wrote: »

I want to start a stakeholder pension for my son, who has learning difficulties. I will also have to start one for my other son, who doesn't, because it wouldn't be fair otherwise! They are 23 and 21, my business is doing well at the moment, and I want them to benefit from the sort of financial planning that I made when I was their age. So, I want stakeholder pensions, what sort of charges are good? My eye was drawn to Virgin, as they already have ISAs with Virgin, they want 1% a year, is that good?

Would a LISA be a better option for both, i.e. flexibility, re a property if appropriate (at some point) or for retirement? Because of the current LISA bonus there isn't a difference wrt pension tax benefit.

greenglide · 3 September 2017 at 2:10PM

there isn't a difference wrt pension tax benefit

If one of the children has no income and does not expect to have significant income then the pension may have significant tax advantages.

Costy · 3 September 2017 at 6:54PM

Yes, he is quite capable, he is running a small business that I set up for him, but he is never going to be a high flyer. He does have a help to buy Isa that he pays the maximum into each month, the other one just has a huge studen loan. I just want to help with them their future while I can. So which pension should I think of, if at all?

cloud_dog · 10 September 2017 at 4:05PM

greenglide wrote: »

If one of the children has no income and does not expect to have significant income then the pension may have significant tax advantages.

Sorry, missed this post.

Can you explain, as my understanding is that the addition of the LISA bonus is (in essence) the equivalent of the tax benefits (gross) on pension contributions, thereby making the overall financial benefits equal (that's my understanding).

Whether there are additional 'benefits' considerations for the one child for a pension or a LISA I am unsure without investigating further.

Best stakeholder pension?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free