The good news is that you already have some pension benefits built up through your Armed Forces pension. While this will provide a useful pension for you, it won’t be enough to retire on.
It is understandable you’re confused about the range of pension options available to you.
Thankfully, there isn’t a huge difference between a stakeholder pension, personal pension and so-called low-cost self-invested personal pension (Sipp), and most modern plans will let you start and stop contributions if you need to – without any penalties.
You’ll typically find a personal pension has more investment options than a stakeholder pension and a Sipp will have more options than a personal pension. All three options have their merits.
If you’re not confident in making your own investment decisions, a straightforward choice is to select a stakeholder pension from a mainstream provider and then pick its default fund option. This approach should stop you going too far wrong.
f you want to pick your own investment funds, a personal pension from one of these companies or one of the other main providers should provide you with enough choice. Each of these products will provide a list of available funds with the level of risk and charges explained.
You always have the option to transfer to a Sipp in the future as your pension fund grows and if you want to have a wider range of investment options.
Patrick Connolly is a certified finanical planner for Chase de Vere.