How to Find the Best Personal Pension Plans
Trying to find the best personal pension plan for you can be a daunting task. We all have slightly different needs and requirements, so what may be considered the best option for one person may not be right for somebody else.
In this article we look at all the different factors and considerations which should be taken into account when looking for a personal pension and provider which best suits your specific circumstances.
Which is the best type of personal pension plan for me?
In the UK there are, essentially, three different types of personal pension to choose from, all of which provide a number of unique features and can offer a different approach towards saving for your retirement:
Establishing which of these options would be most suitable very much depends upon what your key considerations are and the strategy you wish to adopt for your pension contributions.
Which type of personal pension plan offers the best value?
If your definition of ‘best value’ is based purely upon which type of personal pensions provide the most cost effective charging structure, then the stakeholder option would possibly be the most suitable.
However, ‘best value’ could also represent a number of other factors such as payment flexibility or choice of investment funds, for example, which are both strong features of standard personal pensions and SIPPs.
What would be the best type of personal pension for a young person?
The sooner you start saving into a pension, the more you will have to provide an income once you reach retirement.
For the younger generation, the best pension option is likely to be one that is very simple and straightforward offering a degree of flexibility to change as you get older and more experienced with different types of investments.
Both stakeholder and basic personal pensions are very easy to understand, providing a solid starting point for your first retirement savings plan. SIPPs tend to cater for someone who has a firmer grasp of more complex investment strategies.
Which type of personal pension is best if I want a wider range of investment opportunity?
If you’re looking for a much more ‘hands on’ approach towards your pension savings, in terms of the diversification of investment funds and the opportunity to switch across a variety of asset classes, a SIPP would be the best choice to suit such needs.
Whilst both stakeholder and basic personal pension providers can offer a healthy range of managed funds, neither can typically match the range of bespoke investments available within a SIPP portfolio.
As you can see, finding the most suitable type of personal pension to cater for your requirements can be quite tricky – this is where we can help.
The advisors we work with can offer you all the assistance you will need to make the right choice, based on your own personal circumstances. Give us a call on 0808 189 0463 or get in touch and we will arrange for an expert to speak with you directly.
Who are the best personal pension providers in the UK and how do I find them?
In order to compare personal pension providers, it’s important to consider a number of key areas in order to identify specific ‘stand-out’ features which fit with your requirements, such as:
- Fund selection
- The reputation of the provider
- Charging structure
- Flexibility of contributions
The best personal pension companies will generally be the ones who offer the widest range of investment choice across an array of different asset classes from low risk corporate bonds or government gilts to high-risk equity funds and property-based investments.
Whatever risk approach you wish to take, the more you can diversify your pension portfolio, the better chance you have to smooth out any peaks and troughs in the overall performance of your fund.
Reputation of the provider
Pensions are long-term savings plans, therefore, when considering which provider to choose it’s often quite important that the reputation of the company is one you feel you can trust.
You may come across a number of niche companies with a particularly attractive charging structure or strong fund performance but without a solid reputation to provide the necessary confidence you’re looking for with your pension savings.
If this is an important consideration then the best personal pension provider for you will not necessarily be the most economical or always top of the performance charts but is the one you feel most comfortable and familiar with.
All personal pension scheme providers will have their own charging structure and its important to check how these charges are applied as, ultimately, they can – and will – affect the overall value of your retirement fund.
Most companies will apply administration fees and investment fund management charges, however, the amounts can differ between providers. Some companies may also include penalties on their personal pension products for events such as late payments or switching funds.
It’s important to remember, though, not to become too focused on charges. The best personal pension plans will not always be the cheapest.
Flexibility of contributions
Whilst all of the above factors are obviously important, it’s also vital that you’re able to find a provider who can offer a flexible payment structure that fits with your budget.
If you’re self-employed, for example, the best personal pension provider could be the one who can cater for a scheme member who has an irregular income and, therefore, needs to make ad-hoc changes to their contributions or even offer payment holidays.
What is the best way to find the top personal pension plan providers?
There’s no doubt a quick internet search will provide you with a large number of popular websites offering a comparison of the best personal pension providers at any given time.
However, whilst the information provided by the majority of comparison sites can be a useful starting point, the amount of detail can be a tad overwhelming and it’s not always clear what to do next or which option is definitely right for your needs.
The best way to find the pension provider who can offer the most appropriate solution for your needs is to use the services of an experienced, professional advisor.
Rather than just pick a product from a list, the experts we work with will be able to help you find a personal pension that best suits your own specific circumstances.
To get started, give us a call on 0808 189 0463 or make an enquiry and we will arrange for an advisor we work with to get in touch.
How do I find the best performing personal pension plans?
Comparison websites, in much the same way as identifying the top all-round providers, can offer a very useful snapshot of which personal pensions currently have the best performing investment funds.
However, an investment fund which sits on top of the performance charts is not necessarily the most suitable choice in all cases. For example, the underlying assets may not match the risk profile you wish to adopt for your pension savings.
It’s also worth noting that the past performance of an investment fund should not be taken as an assured indication of how it will perform going forward.
The best way to find the most suitable investment funds for your contributions is by speaking with a pensions expert who will be able to establish your attitude to risk and, from there, offer an appropriate, diversified, range of solutions for your portfolio.
If you get in touch we can arrange for an advisor we work with to contact you and discuss the next steps.
Speak to a pensions expert
As you can see, knowing where to get a personal pension that best suits your own needs and which provider to use isn’t always as straightforward as it may first appear – this is where we can help.
The advisors we work with will be able to guide you through this process and ensure you make the right decision.
All advice is free and any information is always given in the strictest confidence.
Call us on 0808 189 0463 or make an enquiry to get started.