New To Pensions

shaz77_2

Hi All

I am new to pensions and I was hoping to get some good advise here before embarking on the package offered by the company I work for.

1. In the current climate of economic uncertainties is it a bad idea to take out a pension?


2. The scheme I am thinking of taking out allows me to input 3% of my wages into it and it will add 5% to this, I am thinking of backdating this to January, is this a good idea?

3. The pension available is called a "Defined Contribution" scheme in which I pay 3% of my gross salary into and the company contributes 5%, the company underwrites the scheme. Does this make sense and does it seem like a good option?

The company offers a range of investment options from which I can choose from:

1. Euro Freeway pension fund
2. Celtic Freeway pension fund
3. Bond Freeway pension fund
4. Cash Freeway pension fund
5. China Freeway pension fund
6. Emerging Market Freeway pension fund
7. US Freeway pension fund.
8. Technology Freeway pension fund
9. Technology Freeway pension fund
10. Biotech Freeway pension fund
11. UK Freeway pension fund
12. Japan Freeway pension fund
13. Latin America Freeway pension fund

dunstonh

1. In the current climate of economic uncertainties is it a bad idea to take out a pension?

pensions dont change with the economic climate. The rules stay the same. They dont make or lose money. They are just a container to put your investments in. Its the investments that give the returns.

Events like those happening currently occur on average once every 7 years. They are generally seen as buying opportunities for the long term but with short term volatility. For those paying monthly and a long time to go, current events are quite useful.

2. The scheme I am thinking of taking out allows me to input 3% of my wages into it and it will add 5% to this, I am thinking of backdating this to January, is this a good idea?

3. The pension available is called a "Defined Contribution" scheme in which I pay 3% of my gross salary into and the company contributes 5%, the company underwrites the scheme. Does this make sense and does it seem like a good option?

Free money. Always take as much free as money as you can. Remember that your contribution is gross not net. So its actually costing you 2.4% but you are getting tax relief upto 3 and the employer is adding another 5%. Nothing else will come close to giving you the same sort of return over the long run.