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Original poster

Help! Self employed pension - what do you use?

16 replies

whistledowntheway · 02/03/2023 09:52

Just as the title says really - I have a few pension pots from old paye jobs that I'd like to consolidate, plus want to start paying in to a private one as I no longer have a workplace pension.
Very new to this and no idea where to start! Would you recommend things like PensionBee/Nutmeg... worried about reviews from people saying they've lost money with them. Is this just to be expected due to the state of the markets generally? Thanks!

OP posts:

Original poster

whistledowntheway · 02/03/2023 10:26

whistledowntheway · 02/03/2023 09:52

Anyone?

OP posts:

DemonSpawn · 02/03/2023 11:51

Just open a SIPP with HL or Vanguard and transfer them all into it - a bit of form filling to do but it’s easy - well it was when I did it a decade ago.

And then buy a low cost S&P500 index tracker.

All investments go both up and down from time to time, the key to success is the long time frame and low fees.

LookingOldTheseDays · 02/03/2023 11:55

worried about reviews from people saying they've lost money with them

Pensions are invested in stocks/bonds etc., so when those investments go down in value (as has generally been the case over the last year), so does the pension. It's just how the markets work. Anyone blaming this on the investment platform that they use is financially illiterate.

If the investment platform has genuinely mislaid someone's money in a transaction, that is different, but I'd be willing to bet that's not what happened.

So TL:DR - ignore those reviews.

LookingOldTheseDays · 02/03/2023 11:57

DemonSpawn · 02/03/2023 11:51

Just open a SIPP with HL or Vanguard and transfer them all into it - a bit of form filling to do but it’s easy - well it was when I did it a decade ago.

And then buy a low cost S&P500 index tracker.

All investments go both up and down from time to time, the key to success is the long time frame and low fees.

I echo this advice. Vanguard's fees are lower than HL's, so if you're just looking to invest in a basic tracker fund (and therefore don't need masses of choice of investments), I'd choose Vanguard.

RedDoughnut · 02/03/2023 12:17

Have you looked at Nest pensions? Very simple.

happyfishcoco · 02/03/2023 12:46

why save in pension? not worth it as you can only take the money out when you are 60.

FusionChefGeoff · 02/03/2023 13:18

Look into fees and performance of your existing pensions. If they look decent then just start paying into one.

messybutfun · 02/03/2023 13:37

Although the age will be going up, currently it is 55.

There are a number of reasons why investing in a pension makes sense for most people.

starpatch · 02/03/2023 17:09

OP I am using a self investing pension with AJBell which I am happy with, they are called SIPPs and that is the option if you want to choose stocks and shares or funds. The government one is called Nest and self employed people can use it, they largely choose your investments for you, it is very well regarded. There is a which article about pensions so worth a google.

Hoppinggreen · 02/03/2023 17:10

I have a SIPP with Hargreaves lansdown

Hoppinggreen · 02/03/2023 17:11

happyfishcoco · 02/03/2023 12:46

why save in pension? not worth it as you can only take the money out when you are 60.

Tax relief and not being able to take it out before 60 (it’s actually 55) is a good thing in a lot of cases

FlowerArranger · 02/03/2023 17:23

happyfishcoco · 02/03/2023 12:46

why save in pension? not worth it as you can only take the money out when you are 60.

Well, that's kind of the point, seeing that a pension is meant to provide income when you are no longer working...

I agree with the recommendation of Vanguard. They have a huge range of funds and their charges are way cheaper than other companies. For most people a range of index trackers is all they need, e.g. UK, Europe, US.

The value will always fluctuate. For the past few years the markets have been very volatile, but if your horizon is 5+ years you are likely to gain more than if you invested in cash or bonds.

There also 'Lifetime' funds that consist of mixed investments, with the risk geared to your time horizon, i.e. more aggressive in the early years and more cautious/conservative as you approach retirement.

The Vanguard website has a lot of useful and educational information. [NB: I do not work for Vanguard, by the way, just think they are better/cheaper than most others.]

bottersnikes · 02/03/2023 17:40

I combined some old, small workplace pensions using PensionBee last year and chose one of the funds they offer.

It was very easy, their Help team was really good at answering my questions, and it's easy to manage my fund now, make additional contributions and see whether I'm on track to reach my savings goal (err, not yet!)

I would definitely recommend them!

QueenOfThorns · 02/03/2023 17:42

I also went for PensionBee, it’s really easy to use and the prediction tools are useful.

Cornelious2011 · 02/03/2023 17:44

Do you work through a Ltd company?
I use Penfold pension for my Ltd company pension. I also opened an under 40's LISA.

CatOnTheChair · 02/03/2023 18:06

Yup, Vanguard here too.

Why a pension? Because I want to actually live once I retire.
Plus, as we are fortunate not to need the money currently, the government let me pay in tax free - so it's up 20% immediately.

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