Personal Pension Enquiry

SDM85

Hi there everyone.

My father passed away three weeks ago at just 55 years old. His passing away has led me to think about my own future, and part of that future is setting up a personal pension for myself.

At the moment, I am 24 years old. I will be 25 in May. I am in full-time employment, but my earnings at present are barely above minimum wage. I have no company pension. I have been to university and I owe around £13,000 to the Student Loans Company, although that does not start getting paid off until I am earning more than £15,000 per annum. I intend to train to become an electrician, and if that happens, I will most likely be self-employed so a personal pension seems to be the best option as far as I can see.

I would like to hear people's opinions on whether a personal pension is the best type of pension for me, given my current situation and future plans? Where is the best place for me to start a personal pension? How much would be a good amount to pay into a pension monthly? Should I pay a lump sum initially?

I am very new to all of this so would really appreciate any advice anyone can offer.

Thanks.

dunstonh

I would like to hear people's opinions on whether a personal pension is the best type of pension for me, given my current situation and future plans?

Possibly a stakeholder pension or a personal pension depending on how you want to invest and what levels of flexibility you will need.

Where is the best place for me to start a personal pension?

There is no one best plan. Each has pros and cons which can suit different people and they way they buy the pension will impact as well.

How much would be a good amount to pay into a pension monthly?

Like any savings plan, what you get back is only as good as what you pay in. You need to find the balance between affordability and what you want in retirement and when you want it. 10% of your income would be a good starting point. However, you also need to build up savings to ensure you have an emergency fund and to cater for near future spending requirements you may have.