Where to start - private pension?

tootoo

Hi,
My dh is self employed and I currently work part time due to having little ones.
Neither of us have pensions and I have been advised my work one is not worth it.

Where do I start? I have had a look at a few providers but I am always put off by the fact that the investments are performance related and can be less than we put in. Are plain savings a better option?

Thank you in advance.

[Deleted User]

tootoo wrote: »

I have been advised my work one is not worth it.

Who advised you of this, and what are the particulars of your work pension? You're much better off going with an employer pension if you can because they normally offer contribution matching, which is in effect free money. If you can explain the details of your employers pension scheme people can let you know if it is worth it or not.

sandsy

Who says your work one is not worth it and why? Does your employer contribute? If so, it's almost certainly worth it otherwise you're giving up part of your remuneration.


Plain savings are hardly ever a better option than investing in a pension. You'd be lucky if they kept their value after inflation. You'd have to earn as much interest on them every year as the inflation rate for them to keep their buying power.


The big advantage of a pension is the tax relief you get as you invest each contribution.


And unless your very close to retirement, you should be looking for investments that, over the long term, should beat inflation to give a real return. Yes, these are the same investments whose value will fluctuate up and down in the short term. But a pension is not a short-term plan - it's an investment for holding for many years and you want it to be worth quite a lot when you retire, given how life expectancy is improving and these savings need to last you for your remaining lifetime.

xylophone

I have been advised my work one is not worth it.

By whom? What does the scheme offer?

xylophone

https://www.moneyadviceservice.org.uk/en/articles/pensions-for-the-self-employed

But see single tier state pension details https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

For a personal pension he could consult an IFA? http://www.unbiased.co.uk/

atush

Every 80 you put into a personal pension is made up by the govt to 100 (tax relief). So even a PP is worth it. Add in money added by your employer, and you are quids in.

Yes, the value can go down on aoccasion, but youare investing monthly so when the price goes down, you get more units for the same amt of money. In the end (ie oer periods of 10 years or more) cash always loses out in this game.

and I have been advised my work one is not worth it.

Whoever told you this is most likely, not very clever

kidmugsy

"I have been advised my work one is not worth it." If true, it's most unusual.

tootoo

Thank you. I shall speak with hr and ask for more details.