I work for a small company without a pension scheme. I want to set up a personal scheme but don't really know where to start.
I understand that companies will soon have to automatically enrol staff in a pension, but that this is still several years away and I think time is of the essence for getting one set up. Can someone please give me a bit of guidance on the kind of schemes available?
If the company you work for has 5 or more employees then, by law, they have to offer you access to a Stakeholder Pension. This is a relatively cheap pension that is run according to certain regulations on price, flexibility, and other factors that were created by the last Labour government.
If that does not fill you with confidence then you will need to find the cheapest plan in the market that offers you access to the range of funds in which you wish to invest.
You will, obviously, need to decide how much you can afford to save on a regular monthly basis.
Speak to an Independent Financial Adviser or Independent Financial planner. | 11.15.10 @ 12:20
Thanks for this. I will have a chat to our HR department and find out whether they are planning to set something up for us. If not, will start looking at the personal investment options. | 11.16.10 @ 13:40
Further to my previous answer, you need to be aware that the government are going to introduce a new pension scheme from, probably, 2012 onwards. This will be called NEST, (The National Employee Savings Trust). It will almost certainly be run by TATA, and is designed to have low charges. the charges at the moment are likely to be 2% of each contribution, up front, and 0.3% per annum. The 2% inital charge is a set up charge and may be reduced or removed at some stage in the future.
See http://www.nestpensions.org.uk/ for more information, or speak to an independent financial adviser. | 12.22.10 @ 15:00