"rather than the whims of the stock market"
Incorrect, you do not have to invest a private pension into the stock market, you can and will be encouraged in your later years to invest your pot into cash accounts, Secure Gilts or similar......
I agree that it's wise to transfer your pot into cash, gilts, etc when you're near retirement age, although the 30-40 years previous to that time, it should be predominantly in shares! The point is that RM final / average salary scheme gives a set ratio of pension based on renumeration and years worked, a private pension doesn't.
"and the embedded link to inflation when you draw your pension".
When you take a private pension, stakeholder or other it is not linked directly to inflation alone. Paying into a private pension basically saves you a pot of money, which when you decide to draw your pension will buy you an annuity, this is the set rate at which your pension will be paid at, not solely a link to inflation.
I was referring to the RM pension being linked to inflation! Obviously with a private pension you will have the choice whether you link to inflation or not. It may not be the best thing to do.
"But a pension is the only thing that'll give you a guaranteed income for life".
Incorrect, you can take an income for life of an ISA if you so choose.
The point I was making(perhaps not very well) is that ISA's, tax free lump sums, etc can be spent too quickly so people struggle later on, or too slowly so that people don't get the full benefit. Whereas a pension will be paid out until you die and the need to budget your savings over a non-defined length of time is taken away.
In reality, as I intimated, a mixture of asset classes will be best for most people.
"The only thing you really need to find out is what will provide the best pension based on your contribution levels, and that will be the RM scheme".
Not nessecarily the RM scheme, for example: if the individual does not intend to stay in employment with RM then he may be better with a private scheme as you are punished heavily when transfering to another provider
If an individual passes on the RM scheme they are saying no to 'free' money, which would be a bit silly, regardless of how long they intend to stay in the job.
In general, charges are only made for transfers if the fund in invested in 'with profits'. The Zurich fund options that the OP will be investing in, are not with profits!
Oh the bonus plan has made a pot for me to purchase an annuity of well over £5,000 for 15 yrs contribution (£2.88 per week less tax cost me around £2.30 a week) which ain't no life changing sum, but when I finish contributing to at retirement will more than double and you knowwhat they say every little helps
If you assume I stay with RM until I'm 60, my Bonusplan might be worth £15,000 if I'm lucky, which like yours won't be a lot. A level annuity might give me £800 a year, an inflation proved one is probably about £500. I can hardly wait.
I think we're batting for the same side here Cheetah, perhaps I'm the Kevin Pietersen to your Mike Atherton!
Anything for a free lunch... 