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First Time Pension
Alison_B
Posts: 2,124 Forumite
Can anyone offer any advice for my son.
He will be 20 in a couple of weeks time and is in full time employment. He has no debts except a small loan he had off us for his car which he will pay off by September and he is on a really good salary. At present he doesn't make an effort to save and pays us a small amount of money a month for his board and logings.
His company run a stakeholder pension scheme but he has to show his interest by the end of February and it will start in April. He can put in up to 10% of his salary and the company will match what he puts in, so if he puts in 10% the company will put in 10%. If he only decides to put in 1% the company will put in 1% plus an extra 1% as an incentive for his putting something into the scheme.
Once he has signed up for the scheme, he has to stick with what he has decided on for the remainder of the year, when we believe he can change what he puts in the year after. Would you recommend him going for 10% for his first year to kick start his pension. Can't see him looking to move out any time soon, so it isn't as though his money is needed.
Any advice will be appreciated.
He will be 20 in a couple of weeks time and is in full time employment. He has no debts except a small loan he had off us for his car which he will pay off by September and he is on a really good salary. At present he doesn't make an effort to save and pays us a small amount of money a month for his board and logings.
His company run a stakeholder pension scheme but he has to show his interest by the end of February and it will start in April. He can put in up to 10% of his salary and the company will match what he puts in, so if he puts in 10% the company will put in 10%. If he only decides to put in 1% the company will put in 1% plus an extra 1% as an incentive for his putting something into the scheme.
Once he has signed up for the scheme, he has to stick with what he has decided on for the remainder of the year, when we believe he can change what he puts in the year after. Would you recommend him going for 10% for his first year to kick start his pension. Can't see him looking to move out any time soon, so it isn't as though his money is needed.
Any advice will be appreciated.
0
Comments
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You won't miss money you never saw in the first place.
He will find it easier to put 10% in now and keep putting 10% in, rather than putting in 1% and trying to up this amount (because 1% is nowhere near enough) in the future when he is used to spending it every month.0
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