Time to think about my pensions

kingrulzuk

I started working full time since I was 18. Only took 4 months off when I went to Australia in 2010. Came back and started working full time again. Now I’m 30 years old have my own flat mortgage paid and a house paying mortgage. I don’t have any big savings and I don’t know if I have any money put in my pension pot. I do have cash Isa and I do save for the rainy day. My tax code is 950L. NI Category A

How can I find out about my pensions?

Any Advice Plz
Many thanks

Maven

Linton

Your cash ISA will lose you money in real terms, so you do need to look towards something better. The easiest way to start with a pension is to ensure you are opted into your employer's scheme assuming you have an employer.

You say you dont know whether you have a pension. What was your employment history, were you a member of your previous employers schemes? You can find out your current pension status by contacting them.

buglawton

You could try this
https://www.gov.uk/find-lost-pension

kingrulzuk

Always paid my Tax and NI and thought that was going towards my retirement?

Last year when I got a letter from my employer about the employer pension schemes. I did not know what to do and I ask some of my work mates and they said it was another way of taking money from us. So opt out of the scheme.

Now I don’t understand those Last 12 years I’m working full time and paying tax and NI does that not go towards my future pension?

Where can I find out how much I have put into my pension pot in last 12 years?

atush

So you have a state pension only. Do you think you cold live on 5-7K?

You have no POT as you didn't invest in one? What you do have is a number of years towards the 35 you will need for the full SP. Contact DWP for a pension statement (not forecast as the pension is changing in 2016) showing the number of years you have so far, and how much S2P you have so far.

Who do you work for, and do they have a pension scheme (if they don't they will soon have to). How much do they pay in?

Seems to me you have nearly 100% of your money in property. While property is fine (and more than fine for your main home) you really need to diversify into equities as well.

Cash loses ground to inflation, and property is illiquid if you need money quickly.

So join your work pension, or set up a PP. at your age, starting so late, you should be putting in about 15% of your gross salary (bearing in mind it will cost you less than that with tax relief). Savings outside a pension, once you have sufficent cash for emergencies, I would suggest a S&S isa.

Linton

35 years of NI will entitle you to a State Pension of around £150/week inflation linked. So in 12 years you have accumulated about £50/week pension. Will you be happy living on £150 a week for perhaps a quarter of your life?

Dont rely on your colleagues in financial matters - they probably know less than you do. In opting out you are saving your employer money as they will almost certainly be contributing to the pension. Suggest you find out the details and opt-in asap.

jem16

kingrulzuk wrote: »

Always paid my Tax and NI and thought that was going towards my retirement?

Only the state pension which will not get you that much.

Last year when I got a letter from my employer about the employer pension schemes. I did not know what to do and I ask some of my work mates and they said it was another way of taking money from us. So opt out of the scheme.

Very bad idea and very foolish work mates who obviously know nothing.

What kind of pension is your employer offering and how much do they contribute? You are basically throwing away free money by opting out.

Now I don’t understand those Last 12 years I’m working full time and paying tax and NI does that not go towards my future pension?

Yes - a future state pension of £144pw. Can you live on that?

Where can I find out how much I have put into my pension pot in last 12 years?

You don't have a pension pot if you have never joined an employer's scheme or set up a private pension. You will have an entitlement to a state pension of around £144pw provided you meet the requirements at state pension age.

You really need to look into pensions and start putting some meaningful money away for your retirement. First of all find out about the employer's pension.

kingrulzuk

First of all I want to say thank you to every one for ur reply.

Now to answer some of the question

I’m working full time for Standard life in security operation department. We do have pension schemes. But on Monday I will find out more about it and join ASAP.

And yes you guys are right £144pw SP is way to less.

jem16

kingrulzuk wrote: »

I’m working full time for Standard life in security operation department. We do have pension schemes. But on Monday I will find out more about it and join ASAP.

If it's Standard Life and it's this pension, you and your colleagues would be mad not to join - 9% non-contributory pension. You might even find they will contribute more if you contribute something.

http://www.standardlife.com/careers/benefits.html

atush

That is a great pension, and I regret to say you have been throwing away 9% of your salary each year. For how many years? Does that sound like it was good advice from your mates? Who are rejecting a pension that could have cost them nothing (had they joined it at 19-20).

In your case, I would add 6% (including tax relief so should be under 5%) on top.

Of course, SL might move south of the border, with that great pension.

xylophone

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

But on Monday I will find out more about it and join ASAP.

"A good idea, son!"