Getting started - how much & how?

argiebargie_2

Hello all, I'm a 36-yo married man and soon to be a dad. hence the more serious consideration of my financial future...

At present I earn about £18kpa self-employed income. I also get about £14kpa part-time from an employer who is offering a pension scheme (contributing 7% themselves).

I have an endowment, left over from an old mortgage; I kept the policy open and just reduced the payments into it, thinking to use it as kind af an investment vehicle. It's set (at present) to pay about £50k when I turn 50.

I'm thinking it would be wise to get into the company pension plan, as contribution ones seem to be on the way out these days. But the amount I will be getting isn't huge. Could I just supplement it from my other income (and how much?), or would it be wiser to look for another product elsewhere to cover my needs?

I'd appreciate your thoughts..... thanks, A-B

Emmamumof2

Id definitely get in on the pension scheme if your employer will contribute 7% - you can add more to it if you want to and you will get tax relief on your contributions so if you put £80 in the amount actually going into the pension would be £100. Its a tax efficient way of saving for retirement! Is the employer contribution based on you contributing a certain level or can you choose how much to contribute? Id take their contribution even if it is a small amount, why wouldn't you, unless they are asking for you to match at a level which is not affordable!?