Pension vs Debt?

loubie_lou

Hi All
Apologies if this has been asked before but I started a new job recently and I have a pension meeting coming up at the end of the month.

As you can see I have debts below so I was wondering what your views are about starting up a pension whilst you have debts?

I'm only 24 but the company I work for are offering a really good pension!

Thanks

CLAPTON

given you tell us nothing about the pension scheme's benefits and nothing about how much you will be paying into it and whether you will be able to reduce the debt, it is a little difficult to comment.

However bear in mind the following :
any money you pay into a pension is free of tax and you pay a lower rate of national insurance on your money........so by not paying you save less than you think. If as many do is also has life insurance aspect that might be seen a reducing your need to have private such insurance.


without knowing any facts but, if the pension fund is a good one and you are currently managing your debts (ie paying all your minimums and snowballing one then I would pay into the pension fund.

THE_LONE_RANGER_4

state soa and more about the pension but in my opinion pension would be classed as a priority,mine is deducted from my wages when i set up my payment programme and my wage was asked for it was done after the deductions were made tax, ni, union,pension
reguards andrew

loubie_lou

It doesn't really matter about the ins and out of the actual pension at the moment.

I'm just wondering whether people in my situation would start a pension even tho they have debts (or higher) like mine?

Thanks

mintymoneysaver

Personally I'd always go for the pension.You will get rid of those debts over the next few years, and you will have something to live on when you retire.

THE_LONE_RANGER_4

a pension is a must and paying when in work is a must i note your age but every one should at least start one by 24and as i said class it as a priority payment reguards andrew

jobbingmusician

Depends on the T & C of the pension.

Basically my decision would always be to go with the highest interest rate. Some employers have pension schemes where they match employee contributions, to a max of x% of salary. I would go for this as it seems to me like 100% interest on your 'savings'. On the other hand, if you are paying 29% APR on a credit card and your excellent pension brings you in 25%, I would personally want to pay the CC off first....

loubie_lou

jobbingmusician wrote:

Depends on the T & C of the pension.

Basically my decision would always be to go with the highest interest rate. Some employers have pension schemes where they match employee contributions, to a max of x% of salary. I would go for this as it seems to me like 100% interest on your 'savings'. On the other hand, if you are paying 29% APR on a credit card and your excellent pension brings you in 25%, I would personally want to pay the CC off first....

Thanks everyone so far!

Hi jobbingmusician. I'm paying it off and closing it on friday when I get paid!

jobbingmusician

Hey, party on Friday then!!! :bdaycake: _party_ _party_