Pension advice, please.

[nomadd]

OK, long story short, here.

I have a Executive Pension Plan which I started about 15 years ago. Haven't put anything in it for the last 5 years. Currently value is about £90k.

I've had a decent 3 years (in finance) contracting recently, so have approx. £200k sat in the company account. At 47, I think it's about time to start dumping some of that into a pension. Also, this might help keep that profit out of the pesky eyes of the IR35 inspectors, as these are bound to be given more of a push looking at what a state the country is in right now (and especially given today's news on "an aggressive clampdown on tax avoidance..", which seems to show the colours of this present government...)

Anyway, had a call a couple of months ago from the guy who set up my EPP all those years ago. Says that they are too expensive to run these days and recommended a switch. A few weeks later his "switch" looked bloody expensive in charges - i.e., all told, about 5% of the first years contributions. Not going through all that again, as I got stung enough the first time round 15 years ago...

Anyway, just wondered what the rest of your guys/gals are doing as regards pension? What would you recommend? Seems these SIPPs are the bee's knee's these days. Is that the route to take? Can I move the EPP over to one of these? Do you know any pension provider/advisor I can actually trust - one who isn't going to stomp me for charges?

All advice greatly appreciated.

(And yes, of course I will be doing far more detailed research of my own over the coming weeks/months before leaping, so not looking for anyone to give me the 'perfect' response. )

Cheers,

Nomadd

[scooterscot]

What would I do? Talk to my IFA.

Was in a similar position some years ago but without all the capital in the bank to invest.

The advice given to me was back to front from in terms of finding a product that would serve my interest when I retire.

For example, I was asked, what would I like my pension to provide me on a monthly basis when I retire? I said £2k.

So I contribute the cash to make that amount. The idea is to set myself a target.

With the cash that remains? Life is too short. Buy a fast car...

[Fred Bloggs]

Look seriously at Hargreaves Lansdown for a SIPP. I use them for mine which I invest in unit trusts. For shares/investment trusts I'd look seriously at Alliance Trust SIPP if I were you as HL are more expensive for these class of investments. It will cost you zero to set the SIPP up with HL. HTH.

[pmeswani]

Look seriously at Hargreaves Lansdown for a SIPP. I use them for mine which I invest in unit trusts. For shares/investment trusts I'd look seriously at Alliance Trust SIPP if I were you as HL are more expensive for these class of investments. It will cost you zero to set the SIPP up with HL. HTH.

I agree. But also shop around the SIPP market place to find out which one is best for you. Call up a few up and ask them how much they charge you to transfer your pension across and also find out how much your current provider charges you to transfer.

[dancemore]

Hi Nomadd,

I'm a Financial Adviser at a company in Essex. I would be happy to have a chat about what you're looking to achieve and the options available to you. Message me if you think that would be of use and I'll provide you with my contact details.

Cheers,

dancemore

[moorfield]

Anyway, just wondered what the rest of your guys/gals are doing as regards pension? What would you recommend? Seems these SIPPs are the bee's knee's these days. Is that the route to take? Can I move the EPP over to one of these? Do you know any pension provider/advisor I can actually trust - one who isn't going to stomp me for charges?

The two most popular SIPPs to look at first are Hargreaves Lansdown and SIPPDeal. Work out what you are likely to be investing in - HL are better priced for funds, SIPPDeal for individual shares. Speak to them both re the EPP transfer if you can get them to do it - do. For an investing idea/strategy you could look at Motley Fools HYP idea.

[Waldorf]

I save for my old age outside the pension regime, although there are tax advantages, the forced purchase of an annuity is not what I want, the annuity rates have been slashed over the last ten years and I would not be surprised if they fell further as a result of longer life expectancy.

Pensions do have a place but not for me with the current rules and restrictions.

[nomadd]

I save for my old age outside the pension regime, although there are tax advantages, the forced purchase of an annuity is not what I want, the annuity rates have been slashed over the last ten years and I would not be surprised if they fell further as a result of longer life expectancy.

Pensions do have a place but not for me with the current rules and restrictions.

Yep, that's been my mantra since I stopped paying into the EPP a few years back. It's still an option, I guess. Take the cash out of the company as dividends (small amount each year to keep my under the top-rate bracket), and then just stuff it in ISAs instead (which is what I've been doing.) It's just that trying to keep under the top-rate bracket is leaving quite a lot of cash in the company account, and the IR35 Police have me worried about it. Hence why I was thinking of starting to draw some of it down into a SIPP, say £1k per month. Might not be worth that much ultimately as a pension, but at least it would get some of the cash out of the company account...

Decisions, decisions.

Cheers for all the replies so far.

Nomadd

[moorfield]

the forced purchase of an annuity is not what I want,

Out of date view - You are no longer forced to buy an annuity.

If for example you are invested in companies paying reliable divis you can remain fully invested drawing off the divis as your income. Capital gets passed to your heirs - albeit heavily taxed - on death rather than an insurance company. That's my plan at least.