Any advice on 'The People's Pension'?

ripplyuk

My partner has just signed up to this through his employer but he doesn't know much about it at all. All he was given was a very short brochure. It says that his employer will match the contributions he makes, which sounds great. Also that he will be paying 5% of his salary each month into it and it uses the money for investments, either low, medium or high risk. He's automatically in the medium risk category as he didn't state a preference.

The problem is that neither of us know anything about pensions and we'd really appreciate any advice on this. He's 48 and has never paid into a pension before so we're wondering if it is worth his while starting now. What details should we be checking regarding this pension plan?

Your_Hero

ripplyuk wrote: »

My partner has just signed up to this through his employer but he doesn't know much about it at all. All he was given was a very short brochure. It says that his employer will match the contributions he makes, which sounds great. Also that he will be paying 5% of his salary each month into it and it uses the money for investments, either low, medium or high risk. He's automatically in the medium risk category as he didn't state a preference.

The problem is that neither of us know anything about pensions and we'd really appreciate any advice on this. He's 48 and has never paid into a pension before so we're wondering if it is worth his while starting now. What details should we be checking regarding this pension plan?

Yes absolutely worth the money in starting a pension, particularly as the employer pays into it too.

You have little choice over the pension as it is an auto-enrolment scheme. The only thing you can look into is the default fund choice and change it to something else if you don't like the look of it.

ripplyuk

Is this scheme likely to be a better option than a private pension? Is there any way of finding out what amount of money the pension will pay him when he retires?

Your_Hero

ripplyuk wrote: »

Is this scheme likely to be a better option than a private pension?

You have no choice in the scheme like I said. If you choose to have a private pension instead, then your employer will not contribute to it.

Is there any way of finding out what amount of money the pension will pay him when he retires?

You may have received some illustrations from the pension provider already, check the packs they've sent you. Or phone up People's Pension and ask them to give you an illustration of what you might get at your chosen retirement age.

MittySmit

My wife has been signed up to this one too and while the investment options are limited you should be able to move money accrued here at will and allegedly whilst still with the same employer. Better to pay in here first and get your contributions matched.

xylophone

as a very short brochure

There seems to be a deal of information here

http://thepeoplespension.co.uk/employees/what-is-the-peoples-pension/the-peoples-pension-in-a-nutshell/

Thrugelmir

ripplyuk wrote: »

Is there any way of finding out what amount of money the pension will pay him when he retires?

Much depends on the future performance of both the UK and Global economies. Look on it as a bonus. The more you contribute the larger the pension will be. Don't expect investment returns to do the heavy lifting for you.

dunstonh

He's 48 and has never paid into a pension before so we're wondering if it is worth his while starting now.

What do you plan to live on in retirement?

Is this scheme likely to be a better option than a private pension? Is there any way of finding out what amount of money the pension will pay him when he retires?

If you choose a personal pension instead of this pension you would
a) be classed as an opt out and many providers will not transact with you.
b) not get the "free" money from the employer

It would be difficult to think of any reason that it would be suitable to pick a personal pension instead of an auto enrolment scheme.

mgdavid

...worth pointing out that there is nothing to stop you having a personal pension as well as the auto-enrolment one.