From: Daytona 
Newsgroups: uk.finance
Subject: Re: Pension advice for young person?
Date: Thu, 04 May 2006 16:43:04 +0100

"Ted"  wrote:

>   What would be the best general advice to give to a young person who is 
>still a student at uni but who is interested in starting a pension scheme. 
>Should they look into stakeholders? 

There are huge benefits to be gained from any investment when you
start young . The most
important thing is not the investment vehicle/wrapper, it's the fact
that they're saving.

As a rough guide to work out how much to aim for, work back from the
state and S2P pensions of approx £4,000 each, for a worker on average
salary. Most financial advisors ignore or denigrate these in an effort
to get you to pay more into their preferred commission paying pension
plan.

It's a FAQ; see the following threads


An ISA gives more flexibility and less chance of the government
restricting access - the government can and has, changed the rules on,
for instance, when you can access funds in a personal pension (which
includes stakeholders). The tax treatment ends up being similar unless
you can be sure that you are getting more tax relief on money in than
the money out will be taxed at. I believe she will need to earn some
income to be eligible for an ISA.

If she want's a pension consider stakeholders and also these good
value for money SIPPs -  &


Investment types in order of preference -

FTSE Dividend + index Exchange Traded Fund - 


Equity Income - 
Investment Trusts - 

Unit Trusts & OEICS - 


Exchange Traded Fund (ETF) index trackers -


>I think company schemes are amongst the 
>best 

It's free money so it's worth having.

>but in this case she doesnt yet know where she will be working .Can you 
>be in a company scheme and still hold  a stakeholder without penalty?

I believe so.

>             Any good links that give good advice without plugging products?

General investment/saving advice

There's a good pensions forum here 
 and SIPP forum 
here . 

I believe a good investment return (on current figures) can be had by
making class 3 NI contributions to the state pension.

General links and info on my webpage 
 

Daytona