Which Pension Option may be Suitable for me?

Stakeholder pension: suitable for someone who doesn’t have access to an occupational scheme, wants a pension at the best price they can but with no real regard for the better funds.

Personal pension: Suitable for someone who doesn’t have access to an occupational scheme who is happy to pay a little more for fund choice

SIPP: Suitable for those who want their money managed professionally by an investment adviser and are happy to pay that little bit extra to do so. They may also be keen to have access to their capital to invest into property. Read our section on: 'What is a SIPP?'

Income Drawdown: Suitable for those who want to increase the potential income at retirement by taking a risk with their capital whilst leaving it invested rather than drawing an annuity. They will be aware that there is a chance their fund could fluctuate downwards and interest rates could also drop, leaving them with a much lower income at retirement than they thought they might have. 

An Annuity: Suitable for someone who wants a clear guarantee of what they will get at retirement and doesn’t want any risk at the expense of potential future growth.