Should I join my companies pension scheme?

Greenpete_2

I have just started with a new company at the age of 57 and have been offered to join their "stakeholder pension scheme". I already have 25 years in a "BT Final salary scheme".

My question is is it worth my while joing the other scheme?Should I do something with my BT pension? Would an ISA be my best bet?

Can anyone help?

Regards

Greenpete

McKneff

Dont really know much about pensions (shame on me) but will your new company be contributing to your stakeholder pension. If so, i would seriously think about it. this is all free money after all

Greenpete_2

it just with only 8 years to go to penion would an ISA be better?

EdInvestor

Tax issue to some extent: what are you expecting in the way of income from your BT,state and any other pensions in due course?

Greenpete_2

Not sure of my BT pension as I took redundancy 5 years ago it was frozen then or whatever the term is.

I cannot make any contribtiuons to this pension

I have looked at my new Pension Scheme and due to the low amount of years I think I wouild be better with ISA's than my companies pension. I am also covered by life insaurnce with it so I would have to find a life insurance.

123oleary

what rate are you expecting on your isa. where i work the company will match your contribution up to ten pounds a week so if your company do something similar it must be better to put a tenner less in an isa and put it in the company pension instead

dunstonh

Assuming you were in the 80ths scheme at BT, that would be 25/80ths = 31.25% of your pensionable salary with them. Not likely to be a lot in other words.

I have looked at my new Pension Scheme and due to the low amount of years I think I wouild be better with ISA's than my companies pension

Is there an employer contribution into the pension?

Greenpete_2

No I was in the other scheme.

Yes the employer will contribute to my pension.

dunstonh

If the employer contributes then take the free money. Nothing else will come close to matching it.

Greenpete_2

Thanks for the advice.

Would it be worth my while, if it can be done, to move my BT pension elsewhere?

Jennifer_Jane

Hi Greenpete!

My entire UK pension is based on having only been 9 years in my Company. It's a hybrid final salary scheme, for info. I have, however, been putting in the maximum contributions which also got matched by the Company AND I've started (from July this year for retirement next Aug) putting in an extra £600 per month into AC's which will form the 25% tax free amount to pay off mortgage, have an emergency fund, get new car. So in a relatively short time I've built up enough to help (with the partial Basic State Pension I'll get) to be able to live on. (Cross fingers).

As others have said here, if the company is contributing, then that's one of the key things.

Regards
Jen
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