If you are looking for a private pension to support you through retirement it’s vital you pick from the best pension funds. Here’s how to compare the best private pension schemes so you can retire with a comfortable income.
It’s fair to say that you can no longer rely on the state pension to support you finically when it’s time to stop working.
So hundreds of thousands of people in the UK are taking matters into their own hands and paying into a private retirement pension scheme to provide a second source of income throughout their retirement.
This is something well worth considering if you don't have a good occupational pension scheme.
However, self invested personal pension plan schemes can vary dramatically so before you start paying into a personal pension plan you need to be compare what’s on offer so you can make an informed choice about the best pension plans for your retirement.
How do you want to save?
Before looking for the best personal pension plan you will need to decide how you are planning to save for your retirement.
The vast majority of pension plans will allow you to save on either a monthly or annual basis, and/or by depositing a lump sum from the outset.
How you want to save can have an impact on the personal pensions you might choose, so it makes sense to decide how you plan to save before you start looking for a pension plan.
Pick a fund type
Deciding where to invest is a big part of choosing private personal pensions and can be crucial in determining how profitable your retirement pension scheme proves to be over the years.
There are a number of factors that you need to consider when choosing a fund, including the asset class, the account manager and the where in the world you money is invested.
For more help picking a fund read our guide: 9 Steps to Finding an Investment Fund That Will Maximise Your Profit.
Check the fees
The main determining factor of the cost of retirement pension scheme plans is the fees that they charge.
Fees are usually quoted as a percentage-based annual management charge and can vary anywhere from 0.3% up to 1.5%. While this may not sound like a large amount hefty account fees can erode the profitability of even the very best pension funds so are worth taking into consideration when making your choice.
Once you’ve narrowed you choices down to the best pension plans for your circumstances based on the underlying investments and performance, you should compare the fees applied by the different personal pensions to find the option that will cost you the least.
You can compare private personal pensions and self invested personal pension plan deals using our private pension schemes comparison table.
