Help Please - Choosing a Company Pension Scheme

[roadsweeper]

My company has now reached the point (5+ staff) at which it needs to start offering a company pension scheme to employees; this also gives myself and my co-owner the opportunity to have our own pensions as well as until now we've done without.

I wondered if someone could describe my options in plain English or perhaps recommend a good website I can peruse to develop a basic understanding before I bring in our accountants to talk us through our options.

Thanks in advance!

[miniman]

IMHO it's a shame that businesses are being pushed into providing pensions when what is available on the market is largely terrible. I have a couple of portable personal products which have had fairly large amounts of money paid into them = 5% + 5% for 6 or 7 years in total - and every year when I get a statement they are worth less than has been paid into them. Putting the money under a mattress would have been more useful.

[stevejh]

At the moment you only have to provide access to a Stakeholder pension for your employees. You don't have to make a contribution unless you want to. However you will, probably from 2014 (from memory)for a company of your size, have to either have your own pension scheme to which you and your employees contribute or there is a Government scheme (NEST) which you can use. Some info about NEST below.

http://www.nestpensions.org.uk/schemeweb/NestWeb/p...

If you want a better pension then you really need to speak to an IFA who specialises in Employee Benefits. Your accountant may have an Financial Advice arm or be able to recommend an adviser.

[stevejh]

miniman said:

IMHO it's a shame that businesses are being pushed into providing pensions when what is available on the market is largely terrible. I have a couple of portable personal products which have had fairly large amounts of money paid into them = 5% + 5% for 6 or 7 years in total - and every year when I get a statement they are worth less than has been paid into them. Putting the money under a mattress would have been more useful.

Worth less than the total paid in or less than what you personally have paid in? If you were making a 5% contribution that would be a 4% contribution after basic rate tax relief so if you paid £100pm into a pension your gross contribution would have been £125 plus your employers £125 giving a total contribution of £250. If your fund is really less than the total paid in then you should really be looking at what investment fund your money is going into and talking to the company's pension advisers.

[dalenorth]

This is a really complex area, there are so many changes in the company pension arena, and it will depend on company size as to when and how you enter NEST.

[khushy]

miniman said:

IMHO it's a shame that businesses are being pushed into providing pensions when what is available on the market is largely terrible. I have a couple of portable personal products which have had fairly large amounts of money paid into them = 5% + 5% for 6 or 7 years in total - and every year when I get a statement they are worth less than has been paid into them. Putting the money under a mattress would have been more useful.

Best Investment = HeliBeds

[roadsweeper]

Thanks everyone.