It’s not like the old days – the internet lets you make your OWN decisions

THERE is still a bit of a weird ‘headmaster and pupil’ dynamic between pension providers and investors.

Many of us still think of pensions as something served up by authoritarian figures and that we have to just grin and bear them. To do as we are told.

But these days, an online pension (often known as a selfinvested personal pension) looks just the same as an online investment account, just with its own set of tax rules.

I think of online pensions as a later-life investment drawer that we cannot open until we are 55. But we can choose what goes into this drawer and look at it online whenever we want. We no longer have to politely just accept whatever is served up to us.

Pensions can be simple in the saving phase but hellishly complicated at retirement stage. If you are in your 50s and want to start taking some of your pension in the next ten years, you should pick an online firm with a strong pensions heritage – and teams of skilled people who can tackle your more complicated questions.

Here, AJ Bell Youinvest and Hargreaves Lansdown lead the pack. In the main, you will talk to good people on the phone who know their stuff. Of the two, AJ Bell Youinvest has lower charges but a less slick online experience than Hargreaves Lansdown.

Many less enthusiastic savers will find these websites daunting. If you prefer to stick to bigger brands which offer simpler, more ‘vanilla’ services, then I think Aviva is worth a look. This huge brand will also offer comfort to those who want to deal with an old, solid and established firm. It offers a simple online journey and you just need to pick one of four investment choices, so it does not overwhelm.

As for charges, expect to pay an online pension provider between 0.3 and 0.4 per cent annually for administration and a further 0.75 per annum for the investment funds you choose to put into the pension.