Views on pensions

[katealpha]

I am trying to work out at the moment whether I should continue paying into my private pension.

My previous employer did not have any pension arrangements so I continued my pension from the employer before that, which is with Standard Life, and simply converted it into a private pension. Then I went self-employed and set up a small business but thought I better keep paying something into my pension, so set the payments at £100 a month i.e. not much but, I thought, better than nothing.

However, looking at the value of the pension it has gone down since last year, and I can't imagine that with all the turmoil on the stockmarket this situation has improved, so the fact I've being paying into it seems like a bit of a waste. I'm just wondering if I'm better off putting my £100 a month into an ISA for now, or some other kind of investment. Or I am being too short sighted?

I am 33 so it is a while before I retire.

[Tony]

is the small business you run a limited company? If so, you have quite a lot of flexibility when it comes to setting up a pension. See this link: Registered pension schemes for directors and owners | Business Link

[barbarp]

Yes kate I would absolutly keep paying into that pension, if you can put a bit extra away in an isa as well it wouldn't hurt.
The thing is that all the evidence shows that women continue to live longer but have less pension provision. You're about the same age as me so I can understand the feeling of it being a while till you retire but look at it this way, have you had kids yet? If not are you going to want to not pay into a pension for that year/couple of years when you're pregnant/child rearing?

Simmilarly quite frankly will there be a state pension available when you and I get to retirement age? Quite frankly I think there won't be one and the retirement age will be much higher.

On the plus side, if you keep paying into a pension and paying into an isa then I'm going to whisper two little words to you that may cause you to become quite excited...listen....lean in close


early retirement

its sure as hell what I'm aiming for!!

[scotchlass]

Okay I am worried now. I am 28 and do not have any pension arrangements. It's one of those things on my to do list. I suppose with having 2 kids I better start thinking, no actually start doing now. Any suggestions on the best pension to have?

[barbarp]

I would say it you can get a pension scheme through your work then thats always a good one to go for because theres a degree of protection and different companies have schemes like with mine {NHS} where you can buy back years by paying a bit over the basic rate and put more away.
That being said there's nothing to stop you getting a private pension as well.
Although this is aimed at over 50's it has some quite good advice.

Personal and private pensions : Directgov - Over 50s

The Pension Service - Useful links - Private pensions and your finances

Personally I would go with banks like the Co-op or the building societys where you get features like money back as part of the dividend not banks where they invest your pension stake on the stock market