Should I make pension contribution in next 3 weeks

whizzing

I was in a good company pension and also paid extra contributions, for a long time, but left over 3 years ago and have made no contributions towards a pension since then. I feel I should do something (in this tax year?) as I would be only be paying £78 for every £100 put in with the govt paying the rest. It seems a no brainer. It was just so easy with a company scheme that I don't know where to start. I seem to naturally shy away from banks and insurance co since they seem to give such bad advice and finding a Independent Financial Advisor doesn't seem easy either. I'm sure an expert on here will tell me what to do.

bargainhunter90

I always wonder about pensions. I have one at work where I pay in either 3 or 4 % and my employer matches the minimum. I can also pay in extra but don't. Instead I took out another pension a Stakeholder one with standard life that I can also use at the post Office and pay in when I like.

Its nice to plan for the long term, but you also need to think of the short term, such as clearing debts and having your own home.

Also ISA's are a good way of saving money

dunstonh

finding a Independent Financial Advisor doesn't seem easy either.

www.unbiased.co.uk is the UK database of IFAs. Search by postcode but dont use any other filters (highly flawed and results in no or hardly any advisers coming up).

EdInvestor

whizzing wrote: »

I feel I should do something (in this tax year?) as I would be only be paying £78 for every £100 put in with the govt paying the rest. It seems a no brainer.

Of course the income is taxed when you receive the pension, so unless your can keep your total pension income at retirement under 10k (including the state pensions) there is no advantage for the vast majority of the money. Plus you can never get the capital out and the income you can take is strictly controlled as well as taxed.

Annual limits for pension contributions have been abolished, now there is a lifetime limit, so it's better to put money in when you're older and hopefully paying higher rate tax.

The stocks and shares ISA is a better way to accumulate a retirment pot for a basic rate taxpayer who has no employer pension IMHO.

There's a lot of info on this discount broker site about what kind of funds may be worth investing in:

https://www.h-l.co.uk

dunstonh

From an income point of view, it shouldnt be forgotten that a pension will provide more income than an ISA even after tax.

It may not have the flexibility and you may pay tax but it will pay more and if you need to maximise income, then pension beats ISA from about age 60 onwards.