Pension advice please......

joeyvicks

I'm 26 and currently have 2 pensions. 1 has a value of £2,500 and the other has only recently been started which has £500ish.

Its a occupational scheme my company pays 6% of my salary and i pay 4%. Which currently equates to around £225/month.

What im wandering is will this end up with a large enough pension when i come to retirment age? I'm a little short on knowledge in this area and would really appreciate some advice. I've only recently become qualified so my pay over the next 5-10 years will increase by a fair bit and obviously so will my contributions...

ColinJS

Hi
The rate of contributions to your pension fund is good (10%) and much more than most of your age (I certainly wish I had saved as much). You can check the documentation which you got from your pension provider when it began. You should find a keyfacts illustration which shows how much your fund might be worth (making assumptions) at your selected retirement age. If you cannot find it, ask the insurance company to produce a 'projection to selected retirement age' assuming contributions increase at a rate which you think is reasonable. This should give you a rough idea, but don't rely on it as it's based heavily on assumptions.

Each year you'll get a statement showing you what your fund might be worth in retirement. It is worth asking the IFA/consultancy which set up the company pension for a review each year, so you can discuss progress and how the fund in invested, and indeed whether you should top up contributions etc.

Cautious_Investor_3

joeyvicks wrote: »

What im wandering is will this end up with a large enough pension when i come to retirment age? I'm a little short on knowledge in this area and would really appreciate some advice. I've only recently become qualified so my pay over the next 5-10 years will increase by a fair bit and obviously so will my contributions...

Hi

It all depends on how much you want to retire on!

You can ask the providers of your company scheme to give you a projection of the future value, although beware, it obviously depends on your circumstances not changing between now and retirement, investment performance and may or may not make an allowance for inflation.

Once you have this compare it to your goals and you will have your answer!

The Cautious Investor