Extra Pensions

DELBERT

Hi

I currently paying into a company pension with seven trent water, currently paying in 6% of my salary about £100 per month which they then add to, this will give me a pension of around £13,000 when i reach 65 plus a state pension of about £5100.00, I also purchase shares through the companys save as you earn system at £110 per month, these mature every 3 years and I always take out a new policy when offered on these.

I would like to have an additonal policy to top my pension but i am unsure what i can do with already paying the full allowance i can into my company pension, i want to have a descent retirement fund so I dont have to worry about money in my old age, I am currently 33.

If anyone could give me a bit of advise i would be very gratefull

dunstonh

first thing is that your state retirement age isnt 65 but 67. So, if you are planning on a 65 retirement age, you are going to have to fund those extra couple of years until the state pension kicks in.

With you fully utilising your occupational pension scheme, the next options are normally investment ISA or pension (personal/stakeholder). ISA gives most flexibility (we arent talking cash ISAs here but stocks and shares. Cash ISAs are no good for long term planning). However, if you are a higher rate taxpayer, you may still see some benefit in 40% tax relief on the personal pension.