Help? 27 no pension scheme at work

kberry_78

Hi,

I just need some guidance as to how to sift through all the different types of pensions. I really can't pay much into one as I have an 8 month old and my husband works part-time. My current company doesn't offer a pension scheme and I don't expect they ever will. I need to start sorting one for myself as I have a little one depending on me. I look at it this way it's going to cost me £250,000 to take care of her until she is 18. At that time I'll be 45. Then I will have to fork out anywhere between £20,000-£60,000 for university ( all figures taking inflation into consideration). So how could I best utilise the £100 p/m surplus I'd like to reserve for my pension?
I've just started to panic :eek: as she may not be my only child and this figure may have to be double or tripled.
Don't get me wrong, husband is just going through a dry patch so things aren't only on my head/pocket.

EdInvestor

First, get a forecast for your state pension when you retire - it may be larger than you think.If there are any gaps in your record, consider paying up any missing NI contributions first.

If there's no company pension on offer, it's better for a basic rate taxpayer to save and invest in an ISA.You can put in 7k a year and the investment options are the same as for a pension. The ISA is much less rigid than the pension, and under the new rules,you can pick up the pension tax relief much closer to the retirement date.

Now it's the ISA which is the annual "use it or lose it" tax perk.

ihatepasswords

First of all - I am not qualified to offer financial advice, but regarding cost for University etc.

We've setup a OEIC FTSE tracker and pay £10 a month into it for both our children, plus any money they get for birthdays and christmas and so far we've got about £1000 in the fund for our daughter who is 3 years old.

I'm not saying it will be enough for all the costs to put her through University (if she wants to go) but it should help.

MrChips

Hi, you say your employer doesn't offer a pension scheme - are you sure?

Under current legislation, if they employ more than 5 employees, they have to. They don't have to make any contributions on your behalf however.

This link might be helpful to you

http://www.adviceguide.org.uk/index/your_world/consumer_affairs/pensions.htm

kberry_78

Even though I have individually thanked you all, I must say that the advice has been great and the hole doesn't seem as dark and deep. Thank you

kenshaz

stake holder pensions

dunstonh

kenshaz wrote:

stake holder pensions

... are pretty awful on the whole nowadays with most personal pensions offering equal or better terms but with a much bigger fund range.

That said, personal pensions usually have a higher minimum premium than a stakeholder. ISAs are usually best for those on a budget.

ohmsoft

...first of all aggree with what has been said above - your employer should at least offer an affiliated stakeholder pension.

kberry_78 wrote:

Even though I have individually thanked you all, I must say that the advice has been great and the hole doesn't seem as dark and deep. Thank you

Personally I think your one of the lucky ones! your very young and your actively taking action to sort out your retirment - £100 supluss is a considerable investment which will make a noticable difference.

Happy days! :j

Jake'sGran

ohmsoft wrote:

...first of all aggree with what has been said above - your employer should at least offer an affiliated stakeholder pension.



Personally I think your one of the lucky ones! your very young and your actively taking action to sort out your retirment - £100 supluss is a considerable investment which will make a noticable difference.

Happy days! :j

Yes, I agree, £100 is a decent amount to invest each month. I would be inclined to do some research on Unit Trusts or Oeics. Most of them allow monthly contributions with a minimum of £50 or £100. If you choose one with a really good record and reinvest the income you could have more at the end of the period than you would ever get in any type of savings scheme. As a result of the scandal of the mis-selling of pensions etc many people have decided not to invest in them now but to do their own thing. I have given advice to my son in law about this and he has set up a SIPP and seems really pleased to have sorted it all out. He is keeping up contributions to his company scheme also.

dunstonh

As a result of the scandal of the mis-selling of pensions etc many people have decided not to invest in them now but to do their own thing.

If they have done it for that reason, then its daft because pension mis-selling was mostly down to occupational pension transfers or opt outs. In those cases you wouldnt choose a personal pension/PEP or ISA anyway.

I have given advice to my son in law about this and he has set up a SIPP and seems really pleased to have sorted it all out. He is keeping up contributions to his company scheme also.

Although an ISA would probably be better than the SIPP as an occupational scheme exists.

Jake'sGran

dunstonh wrote:

If they have done it for that reason, then its daft because pension mis-selling was mostly down to occupational pension transfers or opt outs. In those cases you wouldnt choose a personal pension/PEP or ISA anyway.



Although an ISA would probably be better than the SIPP as an occupational scheme exists.

He does have an ISA too.