I am in my mid 30s and am employed full time in the UK. I am currently in a company pension scheme with around 7k in it, but I'm about to start a new job and must leave the scheme. I have the option of taking the money and paying tax on it (at 40%), or transferring it into another pension scheme.
Its a problem I've faced before and took the money, which I now realise was a big mistake as the money was quickly spent. I expect to find myself in a similar position in my future career, I expect to work for several companies and I'm always going to get a company pension, but I'm not likely to stay in any one company for more than 5 years.
The best thing for me seems to be to get my own pension, not tied to an employer, and pay into it, but I don't know what kind of pension to get. What kind of pension can I get that allows;
- transfers in from company pensions (now and in the future)
- regular monthly contributions (probably £500 per month)
- occasional lump sum contributions
It seems the types of pension available are stakeholder pensions, personal pensions and SIPPs, but I don't really know what fits my needs. Obviously I want a good return and don't want to pay high fees. I can probably put some time and effort into managing the pension, but not a great deal and I'm not experienced in the stock market or investments in general.