Redundancy, effect on pension?

ronnie_2

My employer has been paying into my pension fund, however iam being made redundant shortly and have been advised what my pension will now be at my retiral age.

The fiqures they have given me are, retire at 60 on £3564pa

Now if anyone can give me some advice, each year my employer gave me a note of how much my pension would be at 60 but broke the fiqure down, telling me how much it would be if i took a lump sum payment out etc. If anyone has any experience please can you tell me is it likely i will still have this option or am i totally stuck with this low pension. ie without a lump sum.

I am guessing i am going to need to pay a lot of money into a pension my self now, i am 32 so would i be thinking right that i need to put by roughly 15% of my salary each year or should i look at buying shares etc and hope they are worth a lot more when iam an old man

dunstonh

If anyone has any experience please can you tell me is it likely i will still have this option or am i totally stuck with this low pension. ie without a lump sum.

Lump sum should still be available. There are some possible events that could potentially involve no lump sum being there but it would depend on the type of pension you have. They are not that common but without details, nothing can be ruled out.

i am 32 so would i be thinking right that i need to put by roughly 15% of my salary each year or should i look at buying shares etc and hope they are worth a lot more when iam an old man

Will 15% get you want you want?

Also, a pension is just a wrapper. It isnt what you invest in. Its just a container to hold the investments. \it doesnt make money or lose money. Its what you put in it that does. Shares are a type of investment which can be held in a pension, in an ISA or directly. Which is best would depend on your circumstances, goals, your personality (often the deciding factor) and if you have considered the range of alternatives.