Pensions advice needed!

BWZN93

Hi all

Im currently working for a building society and am enrolled in the smart pensions scheme, which is currently taking 5% of my salary. I have also been adding another 2.5% AVC's into a Fidelity plan, which I intend to increase to 5% starting this month. I have forgotten (oops) which of the funds I opted for initially for the AVC, but as soon as I can get online access to the info I was planning to amend this so I get an equal split into the BGI UK equity index fund and the BGI World (ex-UK) equity index fund.

Unfortunatley, my employer cant offer advice on the AVC's so I need to look at my pension provisions myself (and confuse myself greatly in the meantime...). The UK equity has a risk rating of E-2 and the World equity is E-3. I am 27yrs old, I dont have kids or a mortgage, and I would like to figure out what I should be doing because I have a payrise due soon and want to start saving for a mortgage, and I want this organised so I can forget about it for a couple of years! As for savings, I tend to find myself dipping into them so I have an equity ISA (low risk) with my employer which I bung spare cash in now and again, and will probably use this primarily to save for property. I also have the debts listed below (which are actually smaller now - woohoo!) which I am currently snowballing away.

Basically, I dont understand pensions at all, and my impression is that the smart pensions is a cash fund, then there is a state pension, and the returns from the fidelity AVC's. Would this be correct? If so, is it a good idea to have 10% of my salary going into a split smart and AVC pensions? How can I find out what these could be worth at retirement? Should I be looking at putting the AVC's elsewhere or in something safer? If so, do you know of any good pension planning guides so I can look at my options? I dont really want to spend good money on an IFA if I can help it because id rather just stick the money in the AVC (along with my head in the sand.... Sorry!)

Jo x

(I apologise if my post makes little sense....)

EdInvestor

The two funds in your pension are index trackers: fairly high risk but that's quite OK for your age. AVCs are very inflexible.You might be better to use that money to pay off debt for the moment.

What funds is your "low risk" equity ISA invested in?

BWZN93

Sorry for late response! Its a Nationwide Balanced fund - http://www.nationwide.co.uk/investments/equity-isa-unit-trust/Funds/balanced.htm

Jo x

EdInvestor

Those fund choices are nothing to write home about.I suppose it's not poSssible to move the ISA to a provider with a better choice? :rolleyes:

You would be much better to throw spare money (other than anything getting an employer contribution in the pension) at paying off debt at the moment IMHO.