Pension Advice...

[Joe1989]

I'v just started a new job, and im 21, i couldnt really care less about a pension to be honest but the work are offering me one,

Its a shareholder pension from friends provident, but im not entirely sure all of the in and out of it, does anyone have this sorta thing?

do you think its worth it?

anyone on here old enough to have gotten there pension and have any advice?

cheers for any help

Joe

 

[oneman]

I would 110% start your pension ASAP. At 21 your input will be small and you will get a decent payout. At your age, I would also look at getting a portable pension so if you move jobs you can take your pension with you.

I would speak to a financial advisor and check out moneysavingexpert.com is a great site for any financial related information.

 

[Evastar]

I'v just started a new job, and im 21, i couldnt really care less about a pension to be honest but the work are offering me one,

Its a shareholder pension from friends provident, but im not entirely sure all of the in and out of it, does anyone have this sorta thing?

do you think its worth it?

anyone on here old enough to have gotten there pension and have any advice?

cheers for any help

Joe

are your job offering to put money into a pension for you, or just offering to stop money from your wages to put into your pension? i believe there is a law now that they have to make a pension available to you, but not necessarily contribute themselves.

if it was a company pension scheme where they paid a certain percentage of your wages into the fund i would say definitely go ahead, if it is just a private pension plan that they are offering to deduct the money for at source you might be able to get a better deal elsewhere by setting up one yourself, talk to your bank, or do some research on what's currently available.

 

[oneman]

are your job offering to put money into a pension for you, or just offering to stop money from your wages to put into your pension? i believe there is a law now that they have to make a pension available to you, but not necessarily contribute themselves.

That is right, I think all companies with more then x employees must offer some sort of pension scheme. Most smaller companies just outsource it but they should be offering a contribution scheme where the company match contributions for the first x amount.

As you say find out what sort of scheme it is.

 

[iant]

Companies over a certain size have to offer a pension, but they currently do not have to contibute any money (I believe that is about to change in the near future).

Find out if your company are offering to contribute into the pension - if so then effectively it's free money (even if you can't touch it for a quite a few years).

If it's a stakeholder pension then it will be yours to take with you from job to job. If in doubt, have a chat with human resources who will be able to give you advice.

Your 21 now but trust me, time will fly. If you start putting a %age of you wage in a pension now you can forget about it (you'll probably not miss it) - it will put you in a stronger position later on!!

 

[little_pob]

... If you start putting a %age of you wage in a pension now you can forget about it (you'll probably not miss it)...

Top advice! If you have the pension taken out from the get go, you won't miss it. It's surprising the number of people in our office not in the pension, that are now used to the "extra" 6.5% each month.

Even if you don't have any commitments currently, in the any future spouse or civil partner would be entitled to continue claiming a part of your pension after you died (usually approx 50%).

 

[Joe1989]

Thanks for all the advice folks, i guess your all right and i decided today i would stick with the 6%

They match what every i put in so i guess im accully getting 12% of my salery into the pension!

Its my 2nd proper decent job after coming out of uni, so what i dont have i wont miss as said above so i'll guess i'll keep doing it, also i checked it was transferable and it is which is also a bonus

cheers!

 

[seeking]

With around a current 1 Trillion pounds black hole in the public pension fund, and in the future even less people working to support retirement; the future is very bleak without a independent pension. If the company is offering to put money in as well, you have to accept it.

 

[Utopie]

Only 21 mate, but as someone has said time somehow picks up speed and goes faster and faster as every year passes... 12 months goes by in the blink of an eye... Don't ever take life too seriously but as hard as it might be to understand at your age, you will be old one day...

I think by the time our generation reaches retirment age there will be a hell of a lot of people living hand to mouth as currently most people only seem to live for today and piss their money up the wall on new car finance schemes and iPhones, just to have a BS 'image' - you don't want to be one of those people mate and you'll be the one laughing in 45 years

Sounds like they have offered you a good deal mate... Snap their hands off!!!!!!!!!!!!

 

[oneman]

Thanks for all the advice folks, i guess your all right and i decided today i would stick with the 6%

They match what every i put in so i guess im accully getting 12% of my salery into the pension!

Its my 2nd proper decent job after coming out of uni, so what i dont have i wont miss as said above so i'll guess i'll keep doing it, also i checked it was transferable and it is which is also a bonus

cheers!

don't forget that pension contributions are tax free so if you are in the 40% tax bracket for example that is effectivily 40% extra that you are putting in there.

 

[hatab]

the advice you have been given is the same sort of things i was told when i finished my apprenticeship and went on the full mans wage many years ago. an old chap in the stores explained it and i signed up at 21 it was a no brainer.

ive been quite lucky as i have a protected rights on one pension so although its worth diddly squat in real terms because of stock market ups and downs and various government's over the years changing the rules its still will payout a tidy sum.

talking now, 30 years after joining the first pension scheme, to some of the other lads who i did my apprenticeship with they didn't bother and if you excuse the phrase "pissed it up the wall" they all now realise that to get a half decent pension they need to put a huge amount in every year just to catch up with those that joined.

tbh you must be working for a decent firm if they are paying 6% into your pension that is much higher than most, and as you have worked out if you don't join that money is lost to you for ever its like saying i don't want that pay rise.