Starting a new pension

[ChocolateHelps]

Hi oh wise ones!

I'm in a position to start a new pension

I'm 48 (nearly 49)!years old. Have my own business and earn around £35k per year. 2 children. Husband pays 40% tax rate and has his own pensions. Mortgage of about £160k left on a 10 yr fixed. Will have about £60k balance to pay at end of 10 year fix.

Before children I started a pension about 15 years ago which I feel like I paid very little into but has now grown into a pot of £80k. I pay £50 a month into this and can't increase my payments.

Where do I start to find a new pension? How do I choose? I guess I've got 18 years to pay into one given my state pension won't start until 67 years old.

I will have £500 per month to pay into my new pension.

Any tips or pointers gratefully received!!

Make sure your business is making the pension contribution for you. You'll save corporation tax that way. .

Have a look at Royal London.

@Blankiefan

Make sure your business is making the pension contribution for you. You'll save corporation tax that way. .

Good point. Annoyingly my co-Director (it's just the two of us in Ltd Co) doesn't want a pension so it's hard to work out how to make it 'fair' if I have pendion contributions and she doesn't

Look at low cost SIPP. If having your limited company pay in is not an option (do talk to your co-director and accountant to see if you can come up with a way to do it) then you can personally pay in to a SIPP and the SIPP provider will claim basic rate tax relief on your contribution.

Keep things simple, one multi asset, as global as possible fund is often all you need. If you feel 100% equities is too much, then go for something which gives you a mix of bonds and equities.
Personally I am mid 40's and I use a Vanguard Lifestrategy 80% equities fund within my SIPP as my core investment.

Read, watch, listen to guidance from UK financial planners. Meaningful Money, Maven Money and The Retirement Cafe are good podcasts.

Vanguard SIPP

Minimise your fees, both the platform fee and the fees on the funds you can invest in. You can't control returns, you can control fees.

Thank you Nanny Nik and Darasda

That's so reassuring!

I set up my first ISA 2 years ago with Vanguard 60% fund. I choose it because of the low fees and it seemed to be a good broad mix of funds when I know absolutely nothing about picking individual investments.

I've since moved my children's very old Child Trust Funds into their own Junior ISA'S with Vanguard and they've seen really good gains of 8% since moving in Feb 2020

Never knew that Vanguard could offer the same funds for SIPP.

I'll have a look and see if I can get started.

Thank you everyone

Easy enough to sort out with your co-owner, just reduce your gross salary you take out by the value of the pension contribution.

make sure you invest your money ethically (if you want your kids to have a better future).

makemymoneymatter.co.uk

Easy enough to work out how to be ‘fair’. When they see your money remain gross and theirs pay corporation tax AND personal tax, they may have a rethink!

Watching with interest. I’m self employed and similar position to you.

I’m new to this too and in the same position, I’ve set up vanguard sipp it’s currently invested in “Target Retirement 2050 Fund - Accumulation” how do I switch it to life strategy 80 do I have to sell and rebuy Or should I leave it where it is? I find it a bit confusing as you can tell!

@Iwishiwereamillionaire

I’m new to this too and in the same position, I’ve set up vanguard sipp it’s currently invested in “Target Retirement 2050 Fund - Accumulation” how do I switch it to life strategy 80 do I have to sell and rebuy Or should I leave it where it is? I find it a bit confusing as you can tell!

I would give Vanguard a call or message them thru your account. I've done this a couple of times with questions that were obvious to them but scary to me and they were lovely and quick and efficient and understandable replies.

I have a pension from 10 years ago with Aegon. I have very little in it but recently started to top it up. I often see Vanguard recommendations in these kind of threads but never Aegon. I should probably do a bit of research into what one offers that the other doesn’t.

ChocolateHelps good idea thank I’ll do that.

@Dailywalk Aegon is a provider, but Vanguard is an investment house. Depending on which Aegon product you may be able to buy vanguard funds. If it’s an older pension contract, check the charges, they could be high.

[quote Dindundundundeeer]@Dailywalk Aegon is a provider, but Vanguard is an investment house. Depending on which Aegon product you may be able to buy vanguard funds. If it’s an older pension contract, check the charges, they could be high.[/quote]
Oh ok! I didn’t know this! Thanks. Shows how clueless I am. I need to do some research on this! How I wish I had started thinking of this twenty years ago.

Now trying to figure out what Aegon product I have…

It's made me more think to put £1000 for both of my children into a pension fund for them now...they are 12 & 16....& watch it grow and have it be a good conversation starter and general good start on the pension saving for both of them.