Pension Help Please?

dacdesigns

Hi,

I don't know anything about pensions and would really like a little help and advice, please :mad:

I was paying a stakeholders pension in 2006 with Scottish widows through my old job who was paying the same amount in as me, however I left for a new job in 2008 and stopped paying the pension. I have contacted Scottish widows yesterday to see if I can continue paying the pension after 4 years of no payments. They have told me that I can continue on a personal payment plan however I am unsure if this is the best thing to do. I am not sure if he meant I would be on a personal pension or still a stakeholders pension (not that I know the difference!).

I only earn around £15000 a year and could pay around £50 per month, is this a worth while amount and is the plan any good?

I am 27 years old, not bothered about having a massive pension just being able to live comfortable.

Any help would be great, thank you... :beer:

atush

We cant tell you anything abt your plan, the company will have to do it. but you need to retire on something so starting it up again can be a good idea. Even a pension pot of 100K won't be massive and will only give you income of around 5K per year. How much is it worth now, and what investments are in it?

Does your new employer not have a scheme too? If not, they will have to by 2016, but you can build up your own contribs in the meantime.

Is 50/m your only savings? Do you have any debts? Any savings? I would sav into Cash ISas until you have 3-6 months spending first if this is your only savings money available but if you have debt this needs paying off first.

Or you could go to the budget board and post an SOA and get help trimming back your spending so you could save more and do cash and pension.

dunstonh

I only earn around £15000 a year and could pay around £50 per month, is this a worth while amount and is the plan any good?

It wont be a personal pension on small amounts like that. £50 is below the minimum premium for their personal pension. Trivial amounts like £50pm would be looking at stakeholder.

I am 27 years old, not bothered about having a massive pension just being able to live comfortable.

Its about being able to live comfortably throughout your life. I don't know you situation so cannot comment on yours. However, many people are funding a current lifestyle by in effect robbing their retirement income. You need to make sure you are not doing that.

dacdesigns

atush wrote: »

We cant tell you anything abt your plan, the company will have to do it. but you need to retire on something so starting it up again can be a good idea. Even a pension pot of 100K won't be massive and will only give you income of around 5K per year. How much is it worth now, and what investments are in it?

Does your new employer not have a scheme too? If not, they will have to by 2016, but you can build up your own contribs in the meantime.

Is 50/m your only savings? Do you have any debts? Any savings? I would sav into Cash ISas until you have 3-6 months spending first if this is your only savings money available but if you have debt this needs paying off first.

Or you could go to the budget board and post an SOA and get help trimming back your spending so you could save more and do cash and pension.

To be honest I only payed a small amount in around £20pm which my employer also put in to make it £40pm. My new employer doesn't offer any pension scheme, it's hard enough getting my wages :mad:

I do have about £3,500 of debt, which was a lot more a couple of years ago. I have an isa which is empty due to trying to get out of debt first, i'm just worried that if I don't pay any money in I will have nothing.

£50 might not sound like a lot but for me it is, 40% of my wages goes on driving costs alone, living in Manchester means I pay through the nose for car insurance, £140pm to be exact for a 1.4 renualt scenic which drinks petrol like it's going out of fasion

I feel like i'm out of my depth when it comes to pension and I think that's why I have put it off for so long.

dacdesigns

dunstonh wrote: »

It wont be a personal pension on small amounts like that. £50 is below the minimum premium for their personal pension. Trivial amounts like £50pm would be looking at stakeholder.



Its about being able to live comfortably throughout your life. I don't know you situation so cannot comment on yours. However, many people are funding a current lifestyle by in effect robbing their retirement income. You need to make sure you are not doing that.

Maybe he was meaning persona payments then

I think the comment about funding your current lifestyle is true however my lifestyle is going to work Monday to Friday and bringing up a 3 year old boy, not going out drinking, eating or anything like that. To be honest I can't remember the last time we went out for a drink, might have been christmas two years back :rotfl:

atush

If you have debt, apart form saving a smallamt of say 100-250-500-1000 (depending on if you own a car, house white goods etc) for absolute emergenices there is no question of SAVING until you pay off all debt.

Join a pension after that (and your current emplpyer WILL have to pay into a pension for you by 2016) and save outsie in cash ISAs until you have 6 months spending.

then come back to us or the savings board for more ideas ;-)