Almost 21 Years Old, I Want To Start A Pension Now

kteara

xylophone wrote: »

But as you wanted to know whether your age affected your ability to join the scheme you should have done?

However, the literature is on its way to you and should clarify - if it doesn't you'll need to ring again.

If you are able to join, the matching contribution is 4.5% of salary- does the £40-ish more or less equate to this?

Its true, that was silly on my behalf I just seemed to have forgotten to ask.

The 4.5% contribution is near enough correct however I was a little thrown off because I was expecting to pay £100 ish. Anyways, would I benefit from paying more than the employers contributory percentage or should I keep it as 4.5% ?

xylophone

As far as I can see, you could contribute more (which benefits you as retirement savings) but the employer would not match over the set amount.

kteara

xylophone wrote: »

As far as I can see, you could contribute more (which benefits you as retirement savings) but the employer would not match over the set amount.

I currently earn less than £10,000 a year. I get paid roughly £850 a month. If I paid £100 a month into a pension what tax breaks do I get and how much would I have in my pension pot per month with the contributions?

many thanks

stu12345_2

ur not paying any tax at mo i believe, under 10000 wages, so dont think u get ant tax breaks, u only get employer contribution and urs. can anyone confirm this, thats why autoenrolment is for those above 10000 a year.

but its better than nowt and i suppose u get a wage rise in future. every little helps. save when ur as young as you can.

kteara

I will be changing jobs this year which might lead to me earning just over the £10000 or so threshold therefore meaning I'd have to pay a little bit of tax.

stu12345_2

a little tax, yes, less 20% of the tax is what will happen if u pay pension. above 10000

ViolaLass

stu12345 wrote: »

ur not paying any tax at mo i believe, under 10000 wages, so dont think u get ant tax breaks, u only get employer contribution and urs. can anyone confirm this, thats why autoenrolment is for those above 10000 a year.

but its better than nowt and i suppose u get a wage rise in future. every little helps. save when ur as young as you can.

Incorrect, read post 19.

atush

If you contribute 100 a month, 125 will go into your pension.

But at only 10K per year, i'd look to saving in cash and S&S isas over the employer match at this time. So put in 4.5% if that is the max the employer matches.