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Help! Starting a pension.

booringbloke
Posts: 1 Newbie
Hi all
I have just turned 30 and am thinking of starting a pension, but there is no company pension where I work. I could put away about 250/month.
I have heard about SIPP's, but am told you they are only for those who know what they are doing. are stakeholders any good? are there any other types?
Basically is it worth it?
How to I start?
Is there anything I should beware off?
I also have a lump sum of 'spare' cash. Is it worth putting some of this in to kick start my fund?
I know that i am asking a lot but I would appreciate any advice you can give.
I have just turned 30 and am thinking of starting a pension, but there is no company pension where I work. I could put away about 250/month.
I have heard about SIPP's, but am told you they are only for those who know what they are doing. are stakeholders any good? are there any other types?
Basically is it worth it?
How to I start?
Is there anything I should beware off?
I also have a lump sum of 'spare' cash. Is it worth putting some of this in to kick start my fund?
I know that i am asking a lot but I would appreciate any advice you can give.
0
Comments
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I have heard about SIPP's, but am told you they are only for those who know what they are doing. are stakeholders any good? are there any other types?
You have stakeholders, personal pensions, fund supermarket pensions/hybrid SIPPs and full SIPPs. You would go with the one that offers you the options and features that allows you to invest in the way you wish. You also have stocks and share ISAs to consider as well.Basically is it worth it?
Basic state pension is little over £4500 a year. Second state pension may bring in another £3000-£4000 a year.(assuming that still exists when you get to your state retirement age of 67/68 depending on when in the year you were born).
So, do you want to live on that little amount a year? That is when you decide if its worth it or not.How to I start?
How do you want to invest? once you know that, you then research the providers and type of pensions that allow you to do that and the best one for doing it.Is there anything I should beware off?
Investing is not one level of risk. Its a sliding scale. Make sure your portfolio of funds (assuming funds as that is where most end up) matches your attitude to risk. Dont look at past performance as a guide to future returns. Especially at the riskier end of the scale.I also have a lump sum of 'spare' cash. Is it worth putting some of this in to kick start my fund?
Maybe, maybe not. Utilising it in a stocks and shares ISA may be a good idea.
The Govt is launching the NPSS in 2012 (may be late as the Govt has been late on all the other financial things so far). This will force employers to start a pension scheme which they pay into or enroll into the state scheme. You will want to join that when its launched as it will be free money. However, it will only be upto a certain amount. Probably less than your £250. Plus investment options, although adequate, are not going to be great. So, you may want to use S&S ISAs until 2012 and see how this NPSS comes out.
Many expect the NPSS and the FSA proposals on retail distribution to kill off the stakeholder pension as a product. So, wait and see and use ISAs in the meantime could be the best option.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Check your entitlement to the two state pensions here:
https://www.thepensionservice.gov.uk
Note that if you have no company contribution and a big state pension, then you won't get much of a tax advantage from using a second pension - better to go with a Stocks and shares ISA for now.Trying to keep it simple...0 -
Basically is it worth it?
Yes, yes, yes. Start putting the money somewhere and don't withdraw it. A stocks and shares ISA is a good place. Learn about risk profiles and invest the money to match yours. But start putting it away as soon as possible.thoughts on personal finance @ plonkee.com0
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