Personal Pension

[Minibiker]

Hi all

Looking to set up a personal pension, any recommendations on who to set up with?

Hargreaves Lansdown have popped up a few times, I have junior ISAs with them already..

Any help appreciated

Thank you

 

[OpenToSuggestions]

Are you under 40?
If so you can open a Lifetime ISA where the government adds 25% on top.
You can't take it until you're 60.
I've put mine in very high risk as I though I am 25% up already so worth a dabble - I put in £40 and get £50.
My aim is to create a fund to bridge the gap between state pension and when I want to retire.

 

[MrRockliffe]

Would be looking at a SIPP.

You could go to an IFA and ask for help, or if you’d be happy to, you could do one yourself.


My recommendation, not advice, would be Interactive Investment

SIPP – Open an Award-Winning Self-Invested Personal Pension - ii

Open a SIPP (Self-Invested Personal Pension) account in minutes. Get a low cost & flexible SIPP account with flat monthly fees.

www.ii.co.uk

You pay a flat fee per month vs paying a percentage of your wealth.

 

[Minibiker]

Are you under 40?
If so you can open a Lifetime ISA where the government adds 25% on top.
You can't take it until you're 60.
I've put mine in very high risk as I though I am 25% up already so worth a dabble - I put in £40 and get £50.
My aim is to create a fund to bridge the gap between state pension and when I want to retire.

Yes I'm 35 so not far off 40, I've had previous pensions but the last year or so I haven't... Any recommendations on what platform to use for the Lifetime ISA please?

 

[MrRockliffe]

Yes I'm 35 so not far off 40, I've had previous pensions but the last year or so I haven't... Any recommendations on what platform to use for the Lifetime ISA please?

You’ve got 2 main options:

Cash LISA or Stocks and Shares LISA


In your position, I would look at a S&S, since you’d benefit from a higher risk portfolio - typically used for longer term investment strategy (I.e. you don’t need access to the money in a couple of years - you can ride the waves for the next 20+)



Check out MSE for a comparison of S&S LISAs inc their ongoing fee

Top Lifetime ISAs (LISAs)

MoneySavingExpert's guide to the Lifetime ISA which allows 18-39yr olds to save for retirement or a first home and get a 25% bonus.

www.moneysavingexpert.com

 

[Minibiker]

You’ve got 2 main options:

Cash LISA or Stocks and Shares LISA


In your position, I would look at a S&S, since you’d benefit from a higher risk portfolio - typically used for longer term investment strategy (I.e. you don’t need access to the money in a couple of years - you can ride the waves for the next 20+)



Check out MSE for a comparison of S&S LISAs inc their ongoing fee

Top Lifetime ISAs (LISAs)

MoneySavingExpert's guide to the Lifetime ISA which allows 18-39yr olds to save for retirement or a first home and get a 25% bonus.

www.moneysavingexpert.com

Ok thank you, I already have a normal S&S ISA with Trading 212, should I just keep putting into that then or also open a S&S LISA?

 

[MrRockliffe]

Ok thank you, I already have a normal S&S ISA with Trading 212, should I just keep putting into that then or also open a S&S LISA?

Eggs and baskets - it’s good practice not to put all your investments into one place.


Keep your S&S ISA and open a S&S LISA, in addition to a SIPP with II.


In your position I would put everything into a properly global all cap index fund, such as Vanguard’s.

Vanguard Asset Management | Personal Investing in the UK | Vanguard UK Investor

www.vanguardinvestor.co.uk

With a fund like this you’re generally asking “do I think the global economy is going to grow over the next 30 years” - rather than “do I think the UK economy is going to grow over 30 years”, as an example.


Funds like this can be a safer bet than investing in say, S&P 500, where you’re banking on the US doing well.



Don’t forget about ISA limits in case you open any cash ISAs. I’d probably have at least one for a rainy day fund.

 

[hornetstinger]

After hearing people losing £100,000+ on pension with the maxwell thing, I never looked into it, apart from bare minimum

I'd be mad as hell if I paid say £250+ a month, every month for decades only for some slimeball to run off with it.

 

[OpenToSuggestions]

Yes I'm 35 so not far off 40, I've had previous pensions but the last year or so I haven't... Any recommendations on what platform to use for the Lifetime ISA please?

I use Cushon for a stocks and shares ISA but that is because the company i work for reduces the fees. I don't know any other platforms I'm afraid!

 

[Conanius]

Do your research, speak to an advisor, watch stuff on youtube and gen up on it.

I have a SIPP with AJ Bell, and my money is in Vanguard Trackers which accumulate. There is a lot to consider and make sure you understand.

 

[Minibiker]

Eggs and baskets - it’s good practice not to put all your investments into one place.


Keep your S&S ISA and open a S&S LISA, in addition to a SIPP with II.


In your position I would put everything into a properly global all cap index fund, such as Vanguard’s.

Vanguard Asset Management | Personal Investing in the UK | Vanguard UK Investor

www.vanguardinvestor.co.uk

With a fund like this you’re generally asking “do I think the global economy is going to grow over the next 30 years” - rather than “do I think the UK economy is going to grow over 30 years”, as an example.


Funds like this can be a safer bet than investing in say, S&P 500, where you’re banking on the US doing well.



Don’t forget about ISA limits in case you open any cash ISAs. I’d probably have at least one for a rainy day fund.

I have a few shares in my Trading 212 Account, Vanguard S&P 500 being one of them

 

[MrRockliffe]

I have a few shares in my Trading 212 Account, Vanguard S&P 500 being one of them

I can’t offer advice here as:

A. I’m not knowledgeable enough to do so
B. Even if I was I couldn’t without more context of your background


Damian talks money is a good resource on YouTube - may be worth checking him out for a bit more context so you can make more informed decisions for yourself, if you choose not to go down the route of proper advice (which I’d always recommend because these people spend countless hours studying and engaging with the subject as a hobby and career).

 

[Minibiker]

I can’t offer advice here as:

A. I’m not knowledgeable enough to do so
B. Even if I was I couldn’t without more context of your background


Damian talks money is a good resource on YouTube - may be worth checking him out for a bit more context so you can make more informed decisions for yourself, if you choose not to go down the route of proper advice (which I’d always recommend because these people spend countless hours studying and engaging with the subject as a hobby and career).

Cheers bud I'll go over to his channel and watch a few

 

[radderfire]

After hearing people losing £100,000+ on pension with the maxwell thing, I never looked into it, apart from bare minimum

I'd be mad as hell if I paid say £250+ a month, every month for decades only for some slimeball to run off with it.

That was him raiding the company pension scheme and abusing his position. A personal pension is basically a tax free wrapper, and the key is choosing a reputable company to hold it with. For various reasons this is different to a company pension scheme. They are held with standalone investment companies.

To the OP, the Investors Chronicle magazine would give you lots of info about personal pensions. You've got to choose a reputable company to hold it with, and then work out your investment strategy. It's not rocket science, you'll be able to do it yourself. Personally I do all personal finance stuff myself. If you take investment advice, you'll also be paying away large percentages of fees to your advisors, it's not worth it IMO, and some financial advisors cannot be trusted as they are more interested in making money for themselves.

 

[hornetstinger]

That was him raiding the company pension scheme and abusing his position. A personal pension is basically a tax free wrapper, and the key is choosing a reputable company to hold it with. For various reasons this is different to a company pension scheme. They are held with standalone investment companies.

To the OP, the Investors Chronicle magazine would give you lots of info about personal pensions. You've got to choose a reputable company to hold it with, and then work out your investment strategy. It's not rocket science, you'll be able to do it yourself. Personally I do all personal finance stuff myself. If you take investment advice, you'll also be paying away large percentages of fees to your advisors, it's not worth it IMO, and some financial advisors cannot be trusted as they are more interested in making money for themselves.

Regardless, three people I know lost around £100,000 each.

 

[EvilRob]

After hearing people losing £100,000+ on pension with the maxwell thing, I never looked into it, apart from bare minimum

I'd be mad as hell if I paid say £250+ a month, every month for decades only for some slimeball to run off with it.

That's likely the biggest financial mistake you'll ever make in your life and you've made it for absolutely no logical reason. Well done.

 

[radderfire]

Regardless, three people I know lost around £100,000 each.

What, all Maxwell employees? It's just one case of company pension scheme fraud vs the millions of company or personal pensions in existence. It's not exactly common.

 

[hornetstinger]

That's likely the biggest financial mistake you'll ever make in your life and you've made it for absolutely no logical reason. Well done.

Well I'm on benefits now so not a big deal. and tbh wouldn't want to continue working for that company anyway, plus on crap pay low hours so portion of money going out wasn't really an option

Just saw a job, full time, £25,000 for six day week. LOL having a laugh

 

[200sols]

After hearing people losing £100,000+ on pension with the maxwell thing, I never looked into it, apart from bare minimum

I'd be mad as hell if I paid say £250+ a month, every month for decades only for some slimeball to run off with it.

The dumbest thing I've read on here in a while. £250 a month compounded for decades, you've literally lost yourself hundreds of thousands there without even realising it.

 

[hornetstinger]

The dumbest thing I've read on here in a while. £250 a month compounded for decades, you've literally lost yourself hundreds of thousands there without even realising it.

Not sure how much I was paying into pension, not much. maybe £50 a month or so? Pay was crap, I couldn't afford £250 a month going out.