Pension MoneySaving: Buy a different way to boost returns Article Discussion Area

EdInvestor

What will you get from the two state pensions when you are due for them?That is related to whether or not you should take more lump sum or more pension income for the company pension now.The reason is to do with tax.

You can't actually get your state pension until you get to the relevant age, but you need to plan with it in mind.

NoStrings

Is a pension recommended if you can contribute more than £7,000 a year. Say if over a year I can make monthly contributions of £800, would it be best to put £583 a month into a maxi isa and the remainder into a pension?

EdInvestor

The amount you can contribute is not really relevant.Are you a higher rate taxpayer? Will you get extra money from an employer if you do this?

NoStrings

I am not a higher rate tax payer but I am in an employers GPPP. They contribute 5% of my salary and I put in £40 per month. I am now in a situation where I can afford to put away £800 per month. If as you recommend I max out my ISA every year that is £583 per month, I was just wondering what to do with the remaining £217, up my pension contributions or are there any other alternatives?

EdInvestor

Invest direct in shares or funds.Use a discount broker for both your ISA and the direct investment.

jestaminnit

Many thanks to all who replied... I have all the I need for the moment.
But once again thankyou to everyone.

sammybee

i have got two pensions and an AVC of which are frozen, one was for contracting out of SERPS. i stated a works pension about 7 years ago and now that is being changed.
would it be wise to put all into 1 but not the works pension

twist

cheerfulcat wrote:

I think that it should be pointed out that tax is only deferred; income from a pension is taxable. I would also suggest that someone in their twenties now should think very long and hard before contributing to a personal pension; unless they find it very difficult to keep their paws off their savings, an ISA might be a better place to start.

I also wouldn't describe the cash fund option as " safe ", because it isn't. You are nearly guaranteed to lose money to inflation over the long term.

hey i'm in my twenties and looking for a pension? any ideas for a total novice?

lizballymena

are aegon, formally Scottish Equitable any good for pensions. my son 21 is being offered a pension. he pays £5 per week and his employer pays 3% of his wages. would this be a good investment and what if the firm were to go bust?

dunstonh

Aegon Scot Eq have a decent product but their service levels are dire. The free money from the employer makes it a no brainer.

what if the firm were to go bust?

There is not much chance of Scot Eq going bust. Just make sure he sticks to unit linked funds in the pension.