Pension advice please - aged 22 and clueless.

Southernman

I currently put into a work pension each month. I put in 4% amounting to around £62 a month.

Now my first thoughts are that this realistically isn't enough? I have been paying the £62 a year now and have put away £800 roughly. The employer does not match the amount i put in. I am thinking of increasing it to 5 or 6% the next chance i get (when we get an option to alter amounts) and re-evaluate my financial situation again in a years time.

Secondly i put 60% of my pension into an index linked gilt. I heard it rises with inflation but there are also drawbacks and not really that beneficial? Some also goes into a growth fund and a 'lifestyle option'?

I'm ridiculously clueless though and i'm worried i'm making the wrong choices. This is an RBS employee scheme.

Southernman

Definitely the wrong forum. Is there a way of getting threads moved?

oops

Thrugelmir

Repost in the correct place is the easiest way.

hcb42

the key is you are doing something...far better than nothing , your income and contributions will rise, as will the fund, so keep going..

dunstonh

I currently put into a work pension each month. I put in 4% amounting to around £62 a month.

Without your objectives it is difficult to say. However, to put some perspective on the amount, it is lower than the minimum premium of most personal pension plans.

Secondly i put 60% of my pension into an index linked gilt. I heard it rises with inflation but there are also drawbacks and not really that beneficial? Some also goes into a growth fund and a 'lifestyle option'?

If you are running a structured rebalancing portfolio then gilts can be good (as with other fixed interest securities. Timing can influence how good they are). If you are doing a bit of a random hit and hope and you have decades until retirement then gilts can be a very bad idea. You understanding of gilts is correct but not a gilt fund.