My company doesn't offer any pension...

wilsons

Hi all,

Just started work and the company doesn’t have a pension scheme. Read through the articles and the only thing I managed to retain is that I need to be investing 13% of my income! Now should I be looking at pension schemes or setting up a standing order for the amount to go to a mini cash ISA? The ISA will work in the short term, but I'm hoping to get a pay rise before I retire so unless the £3k limit is increased, I guess i need to look an pensions. If I get something set up, is it rude to ask my employer to pay the 13% of my wage into it for me before tax?

On a different note, I recently moved money from an old ISA into a new one I just opened and am I right in saying this doesn’t affect the £3k limit?

Thanks for your help…

Andy_L

Are you a higher rate tax payer?
If you're not & your employer dosn't pay anything into your pension conventional wisdom on this board is to save in an equity ISA (not a cash ISA) rather than a pension and, perhaps, transfer that into a pension when you become a HRT payer.

Scully's_Girl

wilsons wrote:

On a different note, I recently moved money from an old ISA into a new one I just opened and am I right in saying this doesn’t affect the £3k limit?

Correct. Contact the provider and they can send you the correct paper work. Ensure you remind them this is an ISA

Scully's_Girl

arg! Unsure why the above post didnt show all text. Ask for an ISA transfer form from the bank you want to switch TO, and they'll take it from there. It does not count towards your annual allowance. IR will tell you the same thing.

wilsons

Andy_L wrote:

Are you a higher rate tax payer?
If you're not & your employer dosn't pay anything into your pension conventional wisdom on this board is to save in an equity ISA (not a cash ISA) rather than a pension and, perhaps, transfer that into a pension when you become a HRT payer.

Thanks dude. Not a HRT payer. Is it ok to ask my company to transfer a portion of my pay into it before tax if i get them the isa details and paperwork?

dunstonh

There are advantages salary sacrifice within a pension but this would not apply to an ISA.