Paying peanuts into a pension fund. Is there really any point?

Gra76

xylophone wrote: »

A stiff whisky?:)

http://www.dailywritingtips.com/poring-over-pore-and-pour/

I shall pore over the numbers while I pour a stiff whisky :D

atush

first of all, you will want the 25% tax free cash. It is the most tax efficient way.

Second, if you aren't buying an annuity (but i would look at them as a past cancer sufferer you may get a better enhanced rate) then you would need abt 250K in your fund at age 65 to get 12K in income after you take your 25% TFLS.

atush

Basically at 5 a week or 21.67 per month/ 260 yr(was this before or after tax rel?) you were paying in too little.

In general, you are supposed to raise these amts as your salary raises each year. As 22 quid was a larger bit of your salary all those years ago then now.

So yes, until your employer puts some in (and probably after all well) it is best to pay in as much as you can.

by saying this, I am assuming you have no debt apart from a mtg, and you have an emergency cash pot of savings? Do you have any S&S isas?

And you do need to find out where your contracted out pension went. It has to be somewhere if you did it.