Pensions for dummies...

loubel

I'm quite embarrassed to ask this, but I will need to start a pension in a few years time and I really don't understand how I will go about this as I had always assumed I would have a job that included a pension as part of the benefits.

Can anyone help without making me feel too much of a simpleton?

Velcro_Hotdog

Don't worry it's not as complicated as you may think, have a chat with a couple of IFAs after you have thought about how much you would like to pay into a pension and how much money you will need in retirement. Most IFAs will then be able to give you some quotes and set up a policy for you should you wish to go ahead.
http://www.unbiased.co.uk/find-an-independent-financial-adviser/
The link above will help you find an IFA, if that the route you choose to go down.

HTH

bendix

Spending a few hours in this part of the forum will be a good investment too. There's a wealth of good advice here.

loubel

Thanks for the replies. Can I ask a couple more quick questions:

I know my bank offers pensions so would it be bad to use them rather than an IFA?

Is there a formula for working out how much I need to pay in, or does the IFA/bank help work that out?

Finally, how do I know they won't lose my money?

dunstonh

I know my bank offers pensions so would it be bad to use them rather than an IFA?

Yes. Banks operate on a salesforce mentality and only sell their own products or a limited panel. IFAs offer products from across the marketplace. An IFA should come in cheaper and/or better than a bank every time.

Is there a formula for working out how much I need to pay in, or does the IFA/bank help work that out?

The adviser has software for that.

Finally, how do I know they won't lose my money?

The investments will be made based on an analysis of your risk profile. However, nothing is risk free. Even cash is not risk free. Indeed, for long term planning it can actually be quite risky as you are replacing investment risk with shortfall risk and inflation risk.