I want to start a pension
- Thread starter Woots
- Start date
I used to pay a pension when I first started working. Mainly because my first couple of jobs offered good employer contributions. Stopped when I went to a job with no pension scheme and life got more expensive with house, wife, kids etc.
I'm now mid 30s and spoke to my financial advisor about pensions last year. Naturally he was eager to get me on one but it was estimated that I would need to pay around £300 per month in to get anything even remotely worth while back if I retired mid 60s. I decided to just sack it off as that money can be enjoyed now.
I would say that paying £50 or even £100 into a pension even at your age will probably be pointless. It put the money somewhere that you can get access to it to invest yourself in the future. I now wish I had the money from my 2 pensions in accessible accounts because I could make it work/grow a lot better than what the funds are doing.
I'm now mid 30s and spoke to my financial advisor about pensions last year. Naturally he was eager to get me on one but it was estimated that I would need to pay around £300 per month in to get anything even remotely worth while back if I retired mid 60s. I decided to just sack it off as that money can be enjoyed now.
I would say that paying £50 or even £100 into a pension even at your age will probably be pointless. It put the money somewhere that you can get access to it to invest yourself in the future. I now wish I had the money from my 2 pensions in accessible accounts because I could make it work/grow a lot better than what the funds are doing.
pvr said:
ive had them in the past but never kept them long enough to get use out of them....being newly married etc with some bad financial decisions in the past means im now in debt, so currently trying to pay off 2 C/C's and a loan, so maybe i should pay them off asap to save money on intrest and then possibly save up as much as i can in an isa, and then when its full transfer it into a pension pot? so say in 5 years ive saved 5000 and im debt free i can whap tht away and then add 100ish per month into that
looked at pension calculators for military folk and seems that when im 65 i should be gettin about 15k a year based on a very achievable rank etc....
Some great stuff on this thread, but it's not even painting half the picture. Pensions can pass on untaxed wealth between generations. You just need to find the right one.
Woots - Stuart is right. Go see a Financial Adviser. Pensions are extremely complicated. You might need to pay £500++ for the advice, but the peace of mind it will give you is totally worth it. An adviser can give you the full run down of options, and select something that suits your circumstances best. A pension isn't like a savings account, there are too many pensions out there to choose from, and picking the wrong one could be the difference between £10k per annum and £20k per annum when you retire. A pension that works great for one person might not suit another.
I've worked in pensions product development on and off for 5 years and can send you a whole load of information if you want it, covering the types of pension plans, benefits at retirement etc etc...
Sent from my iPhone using Tapatalk
Woots - Stuart is right. Go see a Financial Adviser. Pensions are extremely complicated. You might need to pay £500++ for the advice, but the peace of mind it will give you is totally worth it. An adviser can give you the full run down of options, and select something that suits your circumstances best. A pension isn't like a savings account, there are too many pensions out there to choose from, and picking the wrong one could be the difference between £10k per annum and £20k per annum when you retire. A pension that works great for one person might not suit another.
I've worked in pensions product development on and off for 5 years and can send you a whole load of information if you want it, covering the types of pension plans, benefits at retirement etc etc...
Sent from my iPhone using Tapatalk
Ever though about premium bonds? We moved savings out of the bank/building society due to the current crappy interest rates, and put them into premium bonds. It's actually worked out a lot better, although an increased return is not guaranteed.Taz x said:
Tapatalking...
Independant advice is the best, good to see you are thinking about it at 22 the money I paid into my pension from 22to 28 when I was earning peanuts so my contributions were very small made up the most of my pension as it was invested for the longest time. My main regret is in 1984 when I had to leave my pension plan I started a private pension paying in the same, it payed out peanuts at age 60. I could have bought a second house in my area, a semi then was about 25,000 and rented it out with the rent and my same payments covering the mortgage it would have been paid off by 60 and worth about 250,000 then, wish I had thought of it then.
Good luck choosing, retirement looks a long way off at 22 but now at 66 I can't believe how fast the time has passed.
Henry1
Good luck choosing, retirement looks a long way off at 22 but now at 66 I can't believe how fast the time has passed.
Henry1
jicholasnackson
Member
I too have been considering my retirement life, and I still have 40+ years working like left. My workplace pension is reasonable, but at this moment in time I think I would much rather invest in more property rather than get caught into pension. Been doing some calculations and I would have to pay silly money in to see a decent return compared to what I would get from rental income on another property for half the money..
jicholasnackson said:
have a read of this then things may be a little clearer http://www.amazon.co.uk/Rich-Dad-Poor-Robert-Kiyosaki/dp/1612680003/ref=sr_1_1?s=books&ie=UTF8&qid=1354920955&sr=1-1
i was already on the right path but it still proved financially educational & you will see money in a different way afterwards
jicholasnackson
Member
So what was the right path for you then?