Pension for 25 yr old.

Reue

somethingcorporate wrote: »

Having just turned 30 I now have around 60k in my scheme and my wife aged 29 has about 40k in hers. That's a lot of income we have sacrificed over the last 6 years but then again it's worth it to avoid living in poverty when (if) we reach our old age.

Out of my ~60k more than half has been growth/tax relief/employers contribution.

Those are very impressive figures! What % did you put in for those 6 years to reach that pot size?

worried_jim

somethingcorporate wrote: »

I did the same at 24 as a young, pretty naive graduate. My Dad gave me a good talking to.

Having just turned 30 I now have around 60k in my scheme and my wife aged 29 has about 40k in hers. That's a lot of income we have sacrificed over the last 6 years but then again it's worth it to avoid living in poverty when (if) we reach our old age.

Out of my ~60k more than half has been growth/tax relief/employers contribution.

Started mine at 20, I am 40 now and the funds are nudging £100k, I currently contribute 5% of my salary and my employer pays 13%. I too had the good talking to and now I sleep like a baby!

Riddar

worried_jim wrote: »

Started mine at 20, I am 40 now and the funds are nudging £100k, I currently contribute 5% of my salary and my employer pays 13%. I too had the good talking to and now I sleep like a baby!

I also contribute 5% of my salary and my employer pays 13%.

I believe it is foolish for anybody to not make the most of their employers contributions as it really does make a difference.

jamesd

ipri wrote: »

He's heard stories about schemes collapsing just before payout due!....As I have. Are rules about such things different now?

THings are very different these days.

For the old fashioned defined benefit schemes that today mostly exist for new joiners only in the public sector, the Pension Protection Fund will take over and pay the pension if the pension scheme doesn't have enough money to cover it's projected pension liabilities. There are limits but those are generous enough that most non-senior employees don't need to worry about them.

For the types he's likely to be offered, defined contribution, the money is paid by the employer each month into a pot in his name and it's completely independent of the employer's situation from that month on. The Financial Services compensation scheme provides good protection for these but beyond that, the regulations require that the customer money is kept apart from the pension company or investment company money as well, so a failure of either of those wouldn't have a negative effect.

So he can forget about schemes going bankrupt and pensioners losing their pensions, the chance of it happening for either type of pension in the UK these days is insignificant.