bce vs pension advice needed

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shadyadie
shadyadie Posts: 53 Forumite
in Pensions, annuities & retirement planning
I will try and explain this as best I can.
several years ago I worked for an employer who had just joined bce pension fund and I was put in it, but I left soon after.
I started my own pension with natwest and my last employer paid into that. ( They weren't in Bce).
My current employer has offered to pay into a pension for me, but due to issues with duel payment into my natwest account, I looked into getting one with the bank of scotland, but they have told me that because my current employer is part of Bce and I have a Bce account they are unable to offer me a pension as Bce would be better. Is it worth me looking elsewhere or should I just let my current employer pay into my Bce account (it currently has about £90 in it)
thanks for any advise
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  • dunstonh
    dunstonh Posts: 116,389 Forumite
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    Both natwest and BoS pensions are poor. BCE stakeholder is cheaper. Investment range isnt great but the free money should certainly be taken and put in there. Any extra could go in there or you could look for better investment options than you currently have.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • shadyadie
    shadyadie Posts: 53 Forumite
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    So as my current company is in Bce is there any point in me looking else where for him to pay into? (he is asking me to look in to this)
    Or is my best option to just let it go into the Bce?


    Thanks Adie
  • dunstonh
    dunstonh Posts: 116,389 Forumite
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    BCE is cheap but limited on investment potential. If you want cheap but dont care about investments, then its fine. If you care about where it is invested, then there are better options. Especially if the employer is willing to pay into the pension of your choice.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • shadyadie
    shadyadie Posts: 53 Forumite
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    What are the better options open to me?

    thanks shadyadie
  • dunstonh
    dunstonh Posts: 116,389 Forumite
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    shadyadie wrote: »
    What are the better options open to me?

    thanks shadyadie

    Can't say. Pensions advice is regulated and it would be a breach of FSA rules and board rules to make such recommendations.

    You have to remember that this money is going to be invested for a long time and you have to consider your risk profile as well. There is no point investing in a index tracker if you have a cautious risk profile. Even if it costs a little less. You need to make sure your investments match your risk profile.

    How do you want to invest? Do you want areas like India, China and Far east or do you not want to bother with that? Do you want it under review or do you just want to invest and forget and not be bothered with the investments? (it is worth noting that for a 30 year old, a difference of 2% a year until retirement in investment returns can double the amount of the final value).

    The best option available to you will depend on what you want from the pension.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    This is a very simple pension. It's charges are low - 0.8% p.a.It has two investment options: a medium risk managed fund with a mix of shares and bonds, and a cash type fund.By using the cash fund, you could if you liked, treat it as a kind of "cash ISA with extra tax relief" - a pension like this wouldn't likely grow as much but it would have no risk.

    http://www.bandce.co.uk/members/StatementFAQ.pdf

    I would go for it, especially as you have employer contributions.Later on, if you get interested in investment and want something a bit sexier you can always move it.

    You could then put your other investment money into a more upmarket stocks and shares ISA, which could be invested in some top quality funds through a discount broker.

    That way you would have your state pension, plus your reliable workhorse low risk BCE pension boosted by the free money, plus your racier stocks and shares ISA.

    Might work out quite nicely.:)
    Trying to keep it simple...;)
  • shadyadie
    shadyadie Posts: 53 Forumite
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    spoke to him last night about it, and he is still on about putting it somewhere better, but the amount it is I'm not sure if its worthwhile looking, as it seems any other policy will have to prove it's self to be better :confused: (is that right?).

    Can anyone suggest a company to try?.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    The other end of the scale would be a SIPP at Hargreaves Lansdown.

    https://www.h-l.co.uk

    There you can choose the best quality funds.

    Something in the middle would be a personal pension at say Scottish Widows or Standard Life. But you might pay a bit more for a similar quality of funds as you would at H-L.

    The advanatge of the BCE pension is it's cheap and it's simple.You don't have to bother about choosing funds, which you will have to do with all the others.
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 116,389 Forumite
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    But you might pay a bit more for a similar quality of funds as you would at H-L.

    Both Scot Wid and Std life would have lower charges than HL if bought on the same basis.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • shadyadie
    shadyadie Posts: 53 Forumite
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    Thanks I will take a look at that









    http://adriancannon.co.uk
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