Looking for beginers pension advice

Edmundo

:hello: Hi guys,
As the title says, i am looking for some pension advice. I'm just stating to look into it so go easy on me please;) . I am 28 and I own my home with my partner and can pay mortgate and bills no problems and have no other debt(credit cards, car loans etc). Recently i set up a stading order from my current account to my northern rock isa to start saving a bit more. I am saving £69 per week (to just keep me under the £3600 limit per year). After reading this forum i stated to think the money might be better off in a pension but havent a clue where to start. Me and my fiancee both have around £6000 each in our isa's so not a bad cushion. My employer doesnt contribute to a pension if i set up one but my fiancee(eventually wife) has a pension scheme thru her job(teaching assistant in school, but unsure the details). Do you think my money might be better off in a pension or stick to my isa. Have heard negative things on pensions although probably from people who dont really know what they are talking about. Thanks in advance!
Neil

jem16

Your fiancee should definitely join the pension scheme which will probably be the Local Government pension Scheme - one of the best around. It's a final salary scheme with great benefits.

As to yourself you should have some retirement plan. With no company contributions you have the choice of arranging your own pension or using an ISA. However it's not a cash ISA you would use for retirement but a S&S ISA. Cash ISAs will not give you the return needed for long term planning.

Edmundo

So you think it would be better for me to put my money in a S&S ISA or do you think i should go and speak to a IFA?

jem16

Personally I would go and see an IFA who can see what the best option is for you.

Edmundo

Anybody else got any input...Cheers

dunstonh

Have heard negative things on pensions although probably from people who dont really know what they are talking about.

Good view. There is nothing wrong with pensions. Most of the myths are about certain types. Your modern options work the same way as ISAs and unit trusts with the exception of the maturity process.

EdInvestor

First, you both might like to get a forecast of your state pension enetitlement (there are 2, so may be higher than you think).

https://www.thepensionservice.gov.uk

Second, if eligible your partner should certainly join the local govt or teachers pension schemes, these are both excellent.

In your own case as a basic rate taxpayer with no employer contribution, I would suggest you go for the "other half" of your ISA - the stocks and shares bit - rather than a pension at the moment.

The S&S ISA will give you the same investment options, but is far more flexible.Later, if you move to paying higher rate tax, you can shift the ISA money into a pension and get 40% tax relief instead of 20%. Pnesions are a much better deal for HRTs.

Edmundo

Thanks guys. Think im going to get in touch with a IFA