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Pension or not to pension that is the question
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Mr.Tunisia
Posts: 17 Forumite
I work in a government body and have had a pension with the local council since I started working 6 years ago. Everybody I have spoken to says that my particular pension is one of the better pensions currently available so I have stuck with it.
This week, however, I just realised that I really don't understand how pensions work. I know I put a monthly contribution towards them and then when I reach a certain age I recoup a monthly income but is it worth it?
I am currently putting 6% of my monthly income towards the pension (which works to be about £150) of which I have little idea where it is going.
I am currently developing a property business and £150 per month would make a big difference to me in this regard.
Is it business, savings or pension?
This week, however, I just realised that I really don't understand how pensions work. I know I put a monthly contribution towards them and then when I reach a certain age I recoup a monthly income but is it worth it?
I am currently putting 6% of my monthly income towards the pension (which works to be about £150) of which I have little idea where it is going.
I am currently developing a property business and £150 per month would make a big difference to me in this regard.
Is it business, savings or pension?
0
Comments
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The pension is likely to be really good value I think. Probably a final salary scheme - If you leave the council it migt be worth going back to work for them just before you retire as the pension will be opened up and calculated on your new salary - that's assuming it's higher. (I might be out of date with that an pensions are always risking the rules when you retire).
Downside is that the money is tied up unlike savings.
Your business might do better with the money - but that's your choice.0
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