Pension

tisha

i have paid into a career average pension for about 5 years, now the company i am working for has changed all the pensions stopping the final salary pensions and the career ones, they now want us to start again with another company friends provident, not sure if i want to do this i am 53 i was thinking of putting money into an isa as i do not want to work till i am 65 would it be wise to do this or to start a new pension, i don't know how long i intend to work for, maybe another 5 years. any ideas please would be grateful

dunstonh

If the employer is making contributions into the Friends Prov GPPP, then you should take that free money.

Pensions do not have to be taken at 65. The GPPP can be commenced at any age between 50 and 75 at this time.

as i do not want to work till i am 65 would it be wise to do this or to start a new pension, i don't know how long i intend to work for, maybe another 5 years. any ideas please would be grateful

Look at your goals. You say you dont want to work until 65. Will you be able to finish early and have sufficient income. At this stage in life, whether you use an ISA or a pension, that really isnt going to make a significant difference. Its a case of how much are you going to save and how much is that going to pay you when you need it.

david78

tisha,

You should accept the companies offer, because if they are making a payment into the pension you will be taking a pay cut if you don't. You would then be able to make additional provision for your pension, either by topping up the company scheme or by taking out a supplementary private pension. Putting some money in an ISA would be a good idea too.

You should find out what is happening to your frozen "average salary" pension and the rules for keeping it in-line with inflation.