private/employer pension

elantan

Hi wonder if anyone can help me ... this may be a silly q but i thought i would ask anyway

i currently have two private pensions one that i pay £64 into every month ( i think it is a stake holder ) and one that i pay £136 into every month ...

my company do offer a pension but they dont pay anything into it currently ( hence the reason why i got my own) i was wondering ... if i took part in the company pension would i pay less tax as the money comes off at source compared to just now i get paid then pay my pension

i understand that i get 20% ( i think it is) contribution paid by the tax man every month as it is ... but was wondering if i pay even less tax at source ( hence having a bit extra in my pocket) due to having a company pension rather than a private one

hope you can help ( if you can understand what i am trying to say ... i'm confused myself lol)

i'm just looking at my pensions just now and trying to get them to work better for me

also how often should i se a pensions advisor for a review?

dunstonh

i was wondering ... if i took part in the company pension would i pay less tax as the money comes off at source compared to just now i get paid then pay my pension

No. Tax relief is the same. Only if your employer offers salary sacrifice would you have an extra gain (reduced NI).

also how often should i se a pensions advisor for a review?

Depends on the size of the pot and how you are invested. The larger the pot and the more diverse you spread your investments, the more reviews it needs. Once a year typically. Small pots could go a few years. Large pots with more specialist pots maybe twice a year. Annual is most common though.

elantan

thanks for the info i thought that was maybe the case but wasnt sure ...

yikes i think i may be overdue getting it checked then ...

ok another silly q ( just thought of it sorry) i am going to make an appointment with an independant pensions advisor ... how will i know if they are just out to sell me something and line their own pockets with a bad investment ( i fully expect to pay for the services) ... yes i know they possibly wont ... but are there any questions i should ask? ..or things i should look out for be wary of etc?


sadly i dont know much about pensions but would love to get on top of mine ... i now have the time to commit to srting it out where as before it was a case of just paying it and leaving it to grow ..keeping my fingers crossed all the while ...

can anyone recommend books/websites etc that i can read so that i can understand things better ?

thanks again

dunstonh

how will i know if they are just out to sell me something and line their own pockets with a bad investment

Statistically, its unlikely for starters. However, you can usually tell just by applying some common sense. If the person giving advice gives little or no detail or reasons why then they are probably more of a seller than an adviser. Ask why and look at the research. We have software that can tell us many things. That software outputs the data to show you if you want to see it. So, whilst you may not understand it all, you should be able to tell if its logical or sounds correct. Good advisers will focus on your risk profile and use defined investment strategies (for active investors) or portfolio funds for lazy investors.

Investing is about opinion. There are very few rights but quite a few wrongs. Opinions will sometimes be wrong but if you follow a recognised strategy then you will usually end up better off (such as having a diverse spread which is rebalancing periodically rather than picking funds at near random and leaving them to their own devices).

elantan

thanks for the help dunstonh... i doubt if they would be trying to fleece me but you know how with lack of knowledge comes predators ... and trying to protect yourself through asking the right questions etc can make all the difference

i think i would like to look into investment strategies but would need to learn all about them before i do ... just now i have the lazy persons type of pension but i want that to change now