Understanding the basics....

IWantToBeFree_2

I don't have much understanding of how pensions work... I have been working full time for nearly 4 years now (I am 22) and have decided that its about time I started putting funds into a pension.

When I made the decision it was before the markets crashed, and now I am in two minds whether its a good time to invest or not.

I thought I would just say I wanted to contribute to the firms GPP (with Winterthur) and that would be that, I never realise that I would have to chose where my money would be invested (a bit naive I know!).

So now I am faced with the decision about whether to actually go ahead with it, where I should invest my funds, and its all a bit confusing, can anyone offer me some advice?

dunstonh

When I made the decision it was before the markets crashed, and now I am in two minds whether its a good time to invest or not.

It shouldnt infuence your decision.

1 - crashes like this happen relatively frequently. Once every 6-7 years. Last one at the start of the millenium saw the FTSE drop more than it did this time round.
2 - You are going to see more of these in the future. Probably 8 or 9 at your age.
3 - investing doesnt have to mean stockmarket.

can anyone offer me some advice?

We cannot offer you advice. Board is not regulated and authorised to do that. Only discussion and comment. If the employer pays into the pension, even more reason to join. If not, then you could compare the employer offering with your own individual plan. At your age, a number of personal pensions would be dirt cheap and could offer better value if there is no employer contribution.