Personal Pension Comparisons

If you’re looking to set up a personal pension plan, it’s important to do your research and compare the market to make sure you end up with the best available deal. There are a vast amount of products out there and choosing the wrong one could impact your quality of life in retirement.

The good news is that there’s a sure-fire way you can search the entire market with minimal legwork on your part, and this guide will explain what it is.

The following topics are covered below…

How to compare personal pension deals

First and foremost, decide what you’re looking for in a personal pension scheme, as this will affect the type of plan you should narrow your search down to.

Personal pensions can broadly be split into three categories: SIPPs, stakeholder, and private pensions, and each have their own unique features.

SIPPs are geared towards people with a degree of investment know how who want the freedom to decide what they invest in. They are hands-on products that act as a ‘wrapper’ for your assets.

Stakeholder pensions, meanwhile, can be just as flexible but are lower maintenance.

Finally, a private pension is a type of pension plan that is set up by you, rather than your employer. They are usually defined contribution schemes and there are a wide range of investment options. You can find out how more about these products in our guide to private personal pensions.

Once you’ve decided which type of personal pension is the right option for you, your next step should be to compare the deals available. Choosing the right SIPP, stakeholder or private pension is a case of assessing your needs, circumstances and appetite for risk, and matching these to a product.

The best way to identify the product that fits the bill is to enlist the help of an independent financial advisor. They have access to the entire market and can give you bespoke guidance about the type of pension that matches your requirements.

Charges comparison

When doing a comparison of personal pension plan charges, it’s important to weigh up the overall costs and benefits involved. For instance, there’s little point in choosing a scheme with the lowest fees if the potential returns won’t leave you with enough income to live comfortably in retirement.

When comparing pension costs, look for how much each provider charges for the following…

• Management fees
• Service fees
• Inactivity fees
• Exit fees
• Platform fees
• Underlying fund fees
• Contribution charges

Trawling through each provider’s website or contacting them directly to compare charges yourself can take a lot of legwork and also comes with the risk of missing out on a potentially more favourable deal offered by a personal pension company you didn’t even know existed.

With this in mind, the best way to compare personal pension costs is through an independent financial advisor, like the ones we work with. They can scour the entire market for you and find the deal offering the best returns at the most cost-effective price, basing their selection entirely on your specifications.

Why comparison tables don’t give you the full picture

Online rates tables are a quick way to get a comparison of personal pension schemes but you should always take them with a grain of salt. These rates tables aren’t bespoke to your personal profile, are not whole of market and often give prominent placement to sponsored products.

Working with an independent financial advisor will not only give you a complete picture of the entire market, they will give you bespoke guidance every step of the way. With their help, you can rest assured that you will be introduced to the provider best positioned to offer you a favourable deal.

Speak to an expert

If you’re looking for a comparison of the entire personal pension market call 0808 189 0463 or make an enquiry online. We will introduce you to an independent pensions advisor who can compare rates, returns and costs across the whole of the spectrum and match you with the right product.

We won’t charge a fee for introducing you to them and there’s absolutely no obligation to act on the advice you’re given.