Start pension for son

marylee

My adult son does not think about the future. He has worked only for 22 months in a full time job for the council and did contribute to their pension scheme. I have yet to find what happened to his contributions. For the last 5 yrs since leaving uni, he has worked for agencies on and off for 6 months and then packed his bag to travel round the world.

At the moment, he is doing casual job for the local council and does not or even think of saving any money for a pension. I do not think, he will even get a full state pension due to the fact he has not paid contributions regularly. I am quite concerned and want to save some money for him. He does have a tessa-isa and isa from the beginning worth about £40,000. I did that for both of my children. I have now retired but can still afford to start a pension of £100 for him a month but do not know with which provider. Daughter seems OK, she has her own final salary pension.

I am also wondering whether it is worthy as I have saved £50 a month for 10 yrs with the Royal Nurses Pension Fund and this matures this month and I am getting £7200. I was thinking of something similiar and also if my circumstances change and I can no longer afford it, he could leave the lump untouched until it matures. I understand I could set this for him under gift from income for tax purposes as well coming from our joint account so that it can be carried over as long as of us is still alive and can afford it.

Please can somebody recommend a provider with low cost. Thanks

penrhyn

Do you still do his washing and have his dinner eady on the table when he gets home?
You've already given him a £40,000 ISA what more does he want?
Its entirely up to you of course but he will never take responsibility of his own life while there is good old mum to fall back on.
Spend the money on your self you've worked for it!

marylee

That's what he actually says to me to spend my money on myself, he does not expect it from us. As a mum, I want to do everything to give him a head start, you are only young once and he should make the most of it. I did not have the opportunity to do it when I was young and it gives me pleasure to help him. I come from a different culture and it is difficult to understand, I know we are too over protective and indeed this does not help, I am turning him into an irresponsible adult. Thanks for your comments, point taken.

exil

At the age of (I guess) 27, if he has 40k in an ISA he is further towards making provision for the future than many people his age.

If he'd contributed towards a regular pension scheme, after 5 years he'd probably have less than 10k towards a pension.

dunstonh

I am also wondering whether it is worthy as I have saved £50 a month for 10 yrs with the Royal Nurses Pension Fund and this matures this month and I am getting £7200. I was thinking of something similiar and also if my circumstances change and I can no longer afford it, he could leave the lump untouched until it matures.

These 10 year plans are now obsolete. They only exist in mailshots and direct marketing now as no financial advisor would touch them. Expensive, too many tie ins. They are in effect 10 year endowment policies.

Not being funny but if you keep giving him money, he will never do anything for himself with that regards. He never joined one of the best pensions you can get when he had the chance.

Look after yourself. He will benefit from your assets one day, in the meantime, why dont you benefit from them?