Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • RMR
    • By RMR 15th Apr 19, 10:45 AM
    • 2Posts
    • 1Thanks
    RMR
    Making new pension arrangements
    • #1
    • 15th Apr 19, 10:45 AM
    Making new pension arrangements 15th Apr 19 at 10:45 AM
    Good morning,

    Iíve been in an employers pension scheme for around 30 years, ever since I left school. My earnings have never been particularly high but my employers pension together with my state pension will be enough for me to live on.

    Iím now self employed and can afford to pay a small amount into a pension arrangement, which I know would be tax efficient, but I simply donít know where to start. Iíve tried reading up on the different schemes available, charges and financial advisers but there is just so much conflicting information out there.

    Any pointers in the right direction would be gratefully received.

    Thank you

    RMR
Page 1
    • Albermarle
    • By Albermarle 15th Apr 19, 11:44 AM
    • 582 Posts
    • 326 Thanks
    Albermarle
    • #2
    • 15th Apr 19, 11:44 AM
    • #2
    • 15th Apr 19, 11:44 AM
    You do not need a financial advisor to start up a pension scheme , especially if the sums involved are small.
    If you are not very knowledgeable about investments etc , I suggest you try the websites of a couple of household names like Standard Life or Aviva . They have 'easy' options where you only have to pick one of four risk levels . They might not be the cheapest in terms of charges but you can worry about that when you have built up a bigger fund .
    • xylophone
    • By xylophone 15th Apr 19, 2:12 PM
    • 29,251 Posts
    • 17,765 Thanks
    xylophone
    • #3
    • 15th Apr 19, 2:12 PM
    • #3
    • 15th Apr 19, 2:12 PM
    You might consider a simple stakeholder which suits modest contributions.

    https://www.cavendishonline.co.uk/stakeholder-pension

    Have you obtained a state pension forecast?

    https://www.gov.uk/check-state-pension
    • OldMusicGuy
    • By OldMusicGuy 15th Apr 19, 2:49 PM
    • 895 Posts
    • 1,946 Thanks
    OldMusicGuy
    • #4
    • 15th Apr 19, 2:49 PM
    • #4
    • 15th Apr 19, 2:49 PM
    It's worth having a read of this book: DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning, by John Edwards.
    • fronty
    • By fronty 15th Apr 19, 2:49 PM
    • 16 Posts
    • 2 Thanks
    fronty
    • #5
    • 15th Apr 19, 2:49 PM
    • #5
    • 15th Apr 19, 2:49 PM
    If you don't want the hassle, just want something easy, you could just start squirrelling some money away into an ISA - there's pro and cons and you can probably argue forever about which is better, obviously you won't get tax relief on your contributions but it'll be tax free when you withdraw it. You could always invest it in a pension later on if you wanted and claim the tax relief then.
    • Albermarle
    • By Albermarle 15th Apr 19, 3:57 PM
    • 582 Posts
    • 326 Thanks
    Albermarle
    • #6
    • 15th Apr 19, 3:57 PM
    • #6
    • 15th Apr 19, 3:57 PM
    If you don't want the hassle, just want something easy, you could just start squirrelling some money away into an ISA
    There is more than one type of ISA.
    A cash ISA is simpler but with low returns . A stocks and shares ISA should hopefully give better returns in the long terms (> 5 years ). However in the latter case you still have to pick investment funds so not much different from a pension in that respect . Apart from the fact it is less tax efficient than a pension , although you can access an ISA before age 55.
    You could always invest it in a pension later on if you wanted and claim the tax relief then.
    You can only do this , if you will pay sufficient amount of income tax in the year that you put the money in the pension.
    • RMR
    • By RMR 15th Apr 19, 4:50 PM
    • 2 Posts
    • 1 Thanks
    RMR
    • #7
    • 15th Apr 19, 4:50 PM
    • #7
    • 15th Apr 19, 4:50 PM
    Thank you all, much appreciated. I will have a look at the suggestions and have a think. I've got a state pension forecast and I also have an ISA, so was really thinking of carrying on with a pension in some way. Thank you for taking the time to reply. RMR.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,784Posts Today

7,323Users online

Martin's Twitter
  • Have a great Easter, or a chag sameach to those like me attending Passover seder tomorrow. I?m taking all of next? https://t.co/qrAFTIpqWl

  • RT @rowlyc1980: A whopping 18 days off work for only 9 days leave! I?ll have a bit of that please......thanks @MartinSLewis for your crafty?

  • RT @dinokyp: That feeling when you realise that you have 18 days of work and only used 9 days of your annual leave! Thanks @MartinSLewis h?

  • Follow Martin