pension schemes

Dugganator

Dugganator

Dugganator

Associate
Joined
7 May 2006
Posts
1,965
Hello everyone

Right i've been thinking today that I'm 23, dont have have a pension and been thinking its time to start looking at setting one up. I dont know what people views are. I dont know the first thing really about them and who would be the best company or people to go with or if I should just get a savings account and put money into that instead.

I mean I've heard a lot of bad press about our government ones which will be worth nothing in the future or so we're made to think. Well any advice on who to go with or what to do instead of a pension would be helpful. Oh and I'm looking for the best return possible.... like everyone would hope for :D

Cheers
 
You require an Independent financial advisor to be honest - nobody here is really qualified to mess around with your potential future!
I started mine when I was 18 and have been paying in quite regularly ever since.
This should mean that I can retire early, which is something I've always wanted to do.

Check with who you work for and see what kind of scheme they offer.
Where I am currently working they don't have their own scheme, however they match £ for £ any contribution I make to a recognised pention scheme.
So I'm putting around £120 in a month and my work puts in the same.
 
Go speak to an IFA. Some should have a free initial consultation.

Does your work have a company scheme? Pensions are tax efficient as you receive relief on your premiums - assuming basic rate for every £78 you put into a pension £100 will actually be invested. This will change to £80 in April as income tax is being lowered to 20%

However, whatever you put in you can't have until usual pension age (50) you could look at an ISA which is tax free and there are a few different ways to invest in an ISA. You can encash an ISA at any time.

This year is a toughie to judge with regards returns. Fortunately you've missed the peak of last year but no one is really sure if we've stabilised or heading for more falls.
 
thanks see I didnt know any of that to be honest so you have been a great help so far. I think my company have some sort of sceme but i ll have to talk to them about it i guess.
 
I'd recommend checking with your employer to see if there is a company pension scheme. That way you may benefit from employers contributions.
 
Duggan said:
Oh and I'm looking for the best return possible
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The forces offer a non-contributary pension based on your final salary and the years of service you completed. If you complete the entire length of service you begin receiving the pension immediately.

Probably not what you're after mind :p
 
Defo check with your employer, it's free money!

Mine only does 1:1 but i've got a few industry mates who get as much as 1:3!! which is fantastic. They put in the max so if, for example, their pension came to £500pm they'd end up with 2k a month pension.

The earlier you start the better.
 
Thanks for the advice. I've emailed my boss asking about the scheme here and what they offer. Do you think its worth to have a private one as well or pointless?
 
Duggan said:
Thanks for the advice. I've emailed my boss asking about the scheme here and what they offer. Do you think its worth to have a private one as well or pointless?
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I have a work one and am considering a private one. However, consider the fact that your work will allow you to overpay into your pension. While they may only match you to a certain % you can often top it up.
 
I've got a work pension which is 1:1 matched (upto 10% of salary), but once I've maxed that out in terms of employer contributions I'll most likely start filling my ISA each year too.
 
I was thinking about this a few years back. I already had an ISA set-up that I was paying so much into. Instead of taking out a private pension I just upped the amount I transfered into my ISA.

Speaking of which, interest gets paid at the end of this month. Yay
 
I just got onto my companies final salary scheme - I put in 6.5% of my pay, they put in 18%, then it is years of service x highest year of pay x 1/60 :cool:
 
homerio said:
I just got onto my companies final salary scheme - I put in 6.5% of my pay, they put in 18%, then it is years of service x highest year of pay x 1/60 :cool:
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Prefer my companies scheme - I pay nothing, and get 2% of my final salary (averaged over the last 3 years I think) for each year worked, up to a max of 40 years :)
 
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