I have never had a pension before...

mboro

Hi all,

I have recently landed myself with a better job than my previous one.

They have a pension scheme for my age bracket which is below. I have always been wary of pension schemes, I expect the government to take it all at the last second before I retire, Hence I save part of my wage each month and pop it in the bank.

Is this a good pension to be a part of, what can go wrong???



Age 35-44, my contribution 4 %, Employer contribution 10 %, total 14 %

stinktankcynic

That's a good chunk of money, 10% for your contribution of 4% less tax relief. I'd jump at that.

Yorkie1

Absolutely a good idea to join.

Free money and tax free status, what's not to like!

bigadaj

Brave post. Prepare yourself for many responses saying don't be stupid it's free money, and that is right.

Who is the pension with, presumably it's defined contribution, but still for every pound you put in the company puts in two pounds fifty, and your pound only costs you eighty pence or sixty line depending on your tax rate.

For he pessimistic then he worst that can happen is that your company goes bust and you get 90% of your pension up to around throty grand. Generally with defined contribution schemes you would build up a pot of money held outside the company, so if they did go bust the. That pot would be he.d separately.

So you should join, post back with more details and I'm sure people can help further.

Edit-didn't post quickly enough!

mboro

Thanks for the feed back, I am ashamed to say that I know nothing about pensions, but I tell you I am learning quickly.

I have not got the paperwork yet so I am not sure who the pension scheme is really with. (If thats what you mean) I will be working for Marie Curie.

JoeCrystal

mboro wrote: »

Thanks for the feed back, I am ashamed to say that I know nothing about pensions, but I tell you I am learning quickly.

I have not got the paperwork yet so I am not sure who the pension scheme is really with. (If thats what you mean) I will be working for Marie Curie.

There is nothing to be ashamed about knowing nothing about pensions. Someone got to start somewhere. As it is, it is a good deal. I believe that an average employer's contribution is 6% so getting 10% is very good.

Cheers,
Joe

benalder284

I have always been wary of pension schemes, I expect the government to take it
all at the last second before I retire, Hence I save part of my wage each month
and pop it in the bank.

This is not a rational response to uncertainty and is a recipe for poverty in old age. A pension especially where one is on offer with an employers contribution should form an important part of your long-term savings strategy - unless you plan to die before you get old as Roger Daltrey once said

mboro

That's good to know, thanks JoeCrystal and others.

atush

I have always been wary of pension schemes, I expect the government to take it all at the last second before I retire, Hence I save part of my wage each month and pop it in the bank.

wherever did you get this misguided idea? Why would the govt want to take your pension as it would just then have to support you instead?

I honestly don't understand where people get these crazy ideas.

Anyway, fab pension, free money, join it tomorrow morning!!!!!!

mboro

Thanks for the information.
Looks like I will be taking the pension.