Help I'm New to Pensions

JB77_2

Hi, Hope someone can help.

I have just started to work full time and have decided it is time to begin paying money into a private pension, as the company has no scheme.

My problem is I don't know what to look for in a pension, can anyone point me in the direction of what to look for etc, etc

Thanks for your help in advance

JB77

EdInvestor

If you are a basic rate taxpayer you might be better to save up in an ISA, as other wise you will lose that tax relief.

The pension rules will change soon, which means you can getthat tax relief later on nearer retirement.

Lychee

Hi,

I don't like starting new threads so I hope JB77 doesn't mind me adding to this thread. After all, I am most definitely new to pensions!

I've just received a letter from Inland Revenue asking for a voluntary contribution towards my State Pension. Apparently I did not contribute enough in National Insurance contributions for tax year 2003/04. I was a student at university working part-time and can't think how such a thing could have happened. Now I am being given the 'choice' to make a voluntary contribution of £200++ so that I will receive a better State Pension... ?

Well, I don't even know what a state pension is or how I am entitled to one. I don't know any 'adults' I feel comfortable asking. Could someone explain please? And should I pay this voluntary contribution?

Thank you

[Deleted User]

Lychee, I am in the same position and would also like to know, I hope someone has an answer for us!

wannabestayathomemum

This is a reply for the original question from JB77. My reply is more to do with the fact that you say your employer doesn't have a pension that you can join. If you have only just started working for them it is possible that they do have a pension scheme, but you are not eligible to join yet (the waiting time is quite often 6 months). It might be worth asking the question before you set up your own plan because often you can get lower charges on "group" type pension. If they say they do not have a scheme then they may be breaking the law as generally speaking an employer with 5 or more staff has to provide access for its staff who have been with them for 3 months or more to a stakeholder type pension scheme (although they do not have to pay into it themselves)

Hope this helps

Anya

Really sorry but can I jump in with a question too?!
I had decided that this year I would need to start looking into pensions for me and my husband. We are both in our mid twenties but it has been niggling me for a while now. We currently put about £50 each into an ISA each month. My ISA is labelled as a contingency fund and my OH's is labelled as long term savings (i.e. until we got a pension sorted).
I currently only work part time for Iceland, but our store is one of the ones which has been bought out by M&S, who seem to offer a really good pension scheme where they double whatever I put in. Has anyone any opinions on whether it would be a good idea for me to start this up with them seeing as though I wouldn't be able to put that much in each month anyway, and also that there maybe a possibility of me taking maternity leave at some point next year. Is it better to wait until I have a long term job planned before I start saving or should I jump at the chance whilst it is there? If I were to take a career break could I continue making payments into the pension or would I have to stop? Really sorry for all the questions - I'm not very clued up on pensions at all! Any advice would be very welcome.