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No idea where to starting setting up a private pension!

4 replies

shalalala · 30/07/2021 17:53

Gratefully hoping someone could give me some pointers.
I'd like to set up a pension to enhance my measly workplace one - using online calculators I need to invest another £400/£450 a month which I can afford but have no idea where to start. I've looked at Aviva and Legal & General, is that a good starting point?
Is there a way I can start 'easy' and then look more into investing as I learn more?
Ive been putting this off for three years so know I just need to get going!
Thank you

OP posts:
nannynick · 30/07/2021 20:23

Vanguard Investor has a SIPP where you can have Target Date funds or you can pick a "fund of funds" which has a certain equity percentage - Lifestrategy funds.

It is low cost, 0.15% fee for the platform and fund fees of around 0.23%. So total fees well under 0.5%. Being a percentage based platform it is good for small investment amounts. Once you have £75k or so then you may find that a fixed fee provider like Interactive Investor becomes lower cost.

If you know what you want to invest in and it is not available on the more simple platforms like Vanguard Investor, then look at AJ Bell YouInvest and Hargreaves Lansdown, who provide SIPPs.

SIPP is a type of pension wrapper - Self Invested Personal Pension.

Podcast which talks about wrappers:
meaningfulmoney.tv/UG5

nannynick · 30/07/2021 20:26

L&G has some good low cost tracker funds, such as L&G International Index Trust which can be obtained at as low as 0.06% fee plus the platform fee.

I don't know what L&G offer as their own platform to buy/sell funds. I would look at the fees because they maybe quite high for an individual investor. Insurance companies often do workplace schemes, with various pricing deals.

shalalala · 30/07/2021 20:37

Thanks @nannynick
I was looking at Vanguard but wondered if a SIPP would be too complicated for an absolute novice like me. Sorry for being ignorant, is something like Vanguard a 'classic' type pension? I don't know what I mean really! All I know is that I need to get on it and organising something and can't procrastinate any longer!
Is something like this better than an Aviva or L&G which traditionally i've read about?
Thank you for your time

OP posts:
Defender90 · 30/07/2021 23:44

Years and yonks ago when I was 20 my mum marched me to Abbey National and we started a private pension, it's now royal London and financial advisor said I'm fine staying where I am.

Dad had about 6 pensions, they've now been consolidated and are with royal London.

Try and find a local advisor. Ours asked, what do you want from yours, whether it was abs save save or die with £1 in my account he would steer me right.

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