What type of pension should i have

system15000

hi i'm 26 and work for the inland revenue, i started in june 06 and took a pension with them which they contribute 3.5%, i pay £45.00 per month.
what i want to know is which is the best way to go about getting a private pension and what are the best types if any, also where can i look this info up

jamesd

Unless you need it to hold pension contributions from the inland revenue, the best retirement investment wrapper for you is probably a stocks and shares ISA. Then you decide how risky you want your investments to be - more risk = more likely growth - and select a suitable mix of funds to achieve that average risk level.

dunstonh

what i want to know is which is the best way to go about getting a private pension and what are the best types if any, also where can i look this info up

There is no one best type. A personal pension is just a tax wrapper that contains your investments. Depending on where and how you want to invest, that is when the "best" provider would be easier to research.

Your occupational pension scheme may have some options available on it as well which could be better or worse than a personal arrangement. You also have equity ISAs available which again, could (or would) be better.

I dont know the current position of the HMRC occupational pension. Is it still final salary or has it moved to money purchase?

system15000

my pension is final salary, but i'm not very savy on investments and just want to retire comfortable, who's the best type of people to speak to about this, i'm looking to invest around £50.00 per month to a pension scheme

dunstonh

26 years old and in the final salary scheme.... You really want to be thinking of utilising ISAs rather than a pension.

Your state retirement age is going to be 68 so you arent getting state pension until then. However, the HMRC scheme retirement age is likely to 60, although it could rise to 65. Your problem is likely to be the gap in between the scheme retirement age and the commencement of the state pension to top it up.

Unless you are a higher rate taxpayer, I would be looking on the stocks and shares ISA front. The pension you have got is fine. You dont want to leave yourself too top heavy in pensions and not enough in capital.