Should i pay more into company pension?

cashbackproblems

Hi guys

I recently joined a new firm and their pension scheme is 12.5% of your salary non contributory but you can contribute yourself extra which they will match (up to a certain amount per year). I was wondering if I should contribute additionally? I am 25 with no other pension and currently in process of buying an apartment.

I have been paying £100pm in an HL S+S ISA in a few self selected funds for 2 years, which i intend to use for retirement as well but havent got a clue how much this will be worth aged 55-60.

Thanks

molerat

If they will match the contribution then yes. The fund will only need to perform at half what you can get elsewhere to keep up.

BobQ

You would be silly to ignore an opportunity for additional self contributions where the employer matches the contributions.

12.5% is relatively good but probably not enough to fund a good retirement income, particularly if you have aspirations to retire earlier than the state pension age or you do not have total confidence in the financial services industry's ability to invest your money.

atush

12.5% is pretty darn good, but getting even more 'free' money is even better. So I would put in as much as you need to, to get their max matching contribs if you can.

Good to see a 25 yr old thinking of retirement, you are in the minority lol.