Another Question

[milly143]

As well as buying a property I have been advised by a few people that I really need to take out a pension. I don't know anything about pensions and find it all quite confusing. Any ideas on what type of pension would be best for someone in my position?

[Miss Zippy]

In a nutshell, if your employer offers an occupational pension scheme, it is widely acknowledged that this is the best pension provision available (ok, we�ve heard of occupational schemes going bust, but these are the exception and not the rule). If your  employer offers a final salary scheme, these pensions are probably the best you can get (but you do need to work for the same employer for many years to get the full benefit). If your employer does not offer an occupational pension scheme, it must offer a stakeholder scheme if it employs 5 people or more.  Your employer does not have to contribute to a stakeholder pension, but if it does, it might be an idea to join it as you as both you and your employer will be making contributions. If your employer offers no kind of pension provision at all, the final option is to take out a personal pension and for this you really should seek professional advice

[Oneeyedvic]

It depends very much on a lot of things - eg your salary (pensions are far better if you are a 40% tax payer), your expenditure, your disposable income plus of course your age.

 

There is also a school of thought that pensions are in essence savings - and you should not be doing this until you have no debts (ie mortgage). The counter to this argument though is that you should spread the risks - ie property AND savings.

 

Pensions advice can be very confusing. A company scheme is always best if they are contributing. If not, you really need to go to an IFA - and ask them to explain things in plain english.

[NoGood Boyo]

If you want to find out how pensions work, take a look at www.tiptopmoney.com and click on Knowledge. The information section is totally free to read and use.