Pensions confusion

[girlynut]

Just started a new job. The company has invited me to join its stakeholder pension scheme from December. As an employer, they currently make no contributions but it means I'll be able to put something away.

However, auto-enrollment kicks in for them in May 2014 and they've stated they may well change provider at that time

If so, I'm going to have quite a small pot of money and could well end up with less than I put in.

It feels like a pointless exercise and I think I'd do better to put some money away in savings until next May and then try to contribute a higher amount in the new scheme from May onwards.

But equally, I'd still be able to transfer anything in the old scheme into the new scheme, wouldn't I?

What do the financial whizzes on mumsnet think? TIA.

DC (stakeholder type) schemes are a con. Avoid.
SAve your money in ISAs its safer

I would want to clarify with the employer what their policy is going to be. Are they going to change or not? What do they intend existing employees in the pension scheme should do with the money they have accrued? Switch to the new provider? Carry on contributing to the existing provider?

Stakeholder pensions are not a con, they are a very tax-efficient method of long-term saving. ISAs may be safer and lower risk but with low risk comes low rewards.