starting a pension

[PitchPerfect]

Hi,

I will be getting married later this year and my spouse-to-be has never had any pension provision.

His income is sporadic and so something he can add to on an ad hoc basis would be preferable to a regular payment in order to account for any peaks and troughs in cashflow. He is 39 and self employed (sole trader).

I have always contributed to a company pension while in employment however this wouldn't go very far split between two.

What is the best way for him to make a start?

Thanks,
PPx

[Alaric]

What is the best way for him to make a start?

I would have thought to open a SIPP with one of the many on-line providers. That deals with putting money in when available. He will still have to decide where to invest the now ring-fenced savings. Collecting the tax relief at basic rate is handled by the SIPP provider. If there's any Higher Rate Tax relief available, this comes through the annual Tax Return.

[Urbandreamer]

In addition to my company pension I also have a SIPP.

Until recently this was funded on a ad-hoc basis whenever I had a spare penny or two.
It's quite easy, although Visa did have a habit of assuming that contributions of £1k or above must be fraud and requiring me to contact them to verify that I was really using a debit card for such a large transaction. Which is why it's now funded by DD.

I enjoy playing the market, but if your intended doesn't then there are a huge number of good investment trusts and funds that would be suitable. My SIPP is with A J Bell and my company scheme with Aviva. Both seem very easy to work with and Aviva have a pension planning calculater (free even if you don't use Aviva) that has had good reviews (though I've never used it).

I would recommend that your intended plan on LARGE contributions. Starting late and not having regular contributions could seriously hamper pension provision.

[swill453]

It's not something I'd do myself, but if the thought of having to self-manage a SIPP is off-putting, you could set up a Personal Pension through a broker like Cavendish. This will give you access to big names like Aviva, Aegon etc., but they won't charge the same fees as you would get from a financial advisor.

See https://www.cavendishonline.co.uk/pensions/personal-pensions/

Personally I'd go for the SIPP, but this is an option.

Scott.

[Urbandreamer]

Hi,

etc

I had to quote to ensure you saw this as a reply. Just a quick point that this months MoneyObserver has a good editorial about how easy DIY pensions can be. OK, it may be a great mag, but subscibing for one editorial is a bit much. I suggest a quick trip to Smiths. Either buy a copy or make him go with you.

Ps, I subscribe and do think that it's a great mag (for those who don't want tips on companys to research and buy shares in).

[StepOne]

It's not something I'd do myself, but if the thought of having to self-manage a SIPP is off-putting, you could set up a Personal Pension through a broker like Cavendish. This will give you access to big names like Aviva, Aegon etc., but they won't charge the same fees as you would get from a financial advisor.

Personally I'd go for the SIPP, but this is an option.

Scott.

Hi Scott,

Can I ask what the advantages of the SIPP route are over Cavendish online? Just asking as I set up a Cavendish one a couple of years back. Is it just the ability to purchase individual shares etc?

Thanks,
StepOne

[swill453]

Can I ask what the advantages of the SIPP route are over Cavendish online? Just asking as I set up a Cavendish one a couple of years back. Is it just the ability to purchase individual shares etc?

Well yes, pretty much. At the "building" stage of a pension, I preferred full control over what I was investing in. Currently invested in Investment Trusts, ETFs and preference shares, though I have had individual company shares in the past.

I'm now at the "spending" stage of my pension, and appreciate the flexibility my SIPP provider (Youinvest) has in ways to take drawdown. Though I have no knowledge of what you could do with Cavendish.

Scott.

[StepOne]

Well yes, pretty much. At the "building" stage of a pension, I preferred full control over what I was investing in. Currently invested in Investment Trusts, ETFs and preference shares, though I have had individual company shares in the past.

I'm now at the "spending" stage of my pension, and appreciate the flexibility my SIPP provider (Youinvest) has in ways to take drawdown. Though I have no knowledge of what you could do with Cavendish.

Thanks for that. It's prompted me to take a look at this pension again - I need to find out if there might be a better way of doing things, but I think I'll start a new thread for that,
StepOne

[Loup321]

I know you asked specifically about a pension, but I think that your partner could also look into the soon to be released LISA. The amount that can be saved is lower than you can in a pension, but is more than my partner and I save jointly in our SIPP and employer schemes. The cutoff for starting one is age 40, so he would need to apply soon (assuming he doesn't reach this milestone before the launch in April). Details are here https://www.gov.uk/government/uploads/s ... lained.pdf

LouP

[PitchPerfect]

Thanks everyone for the advice and suggestions. We have a bit of research ahead of us!

PPx