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Clueless on Pensions

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Comments

  • Cotta
    Cotta Posts: 3,667 Forumite
    Is my overall best option to speak to a financial advisor on this as was suggested earlier in the thread?
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,263 Ambassador
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    I don't think it is worth paying for a financial advisor fee at this stage as your funds are still quite low. As has already been said your current pension which is a lifestyle one seems to be holding up in its sector. If you can afford to up the contributions this is what I would be looking at doing. Get some projections from them, you should either have access online to this information through your pension provider or they may send you annual pension statements. That way you can see as your pension grows how much you are actually going to receive in retirement. We overpaid into our pensions from our mid twenties and it massively increases the amount you will get especially as you are still relatively young. It is also the most tax efficient way of saving there is.
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  • Cotta
    Cotta Posts: 3,667 Forumite
    I don't think it is worth paying for a financial advisor fee at this stage as your funds are still quite low. As has already been said your current pension which is a lifestyle one seems to be holding up in its sector. If you can afford to up the contributions this is what I would be looking at doing. Get some projections from them, you should either have access online to this information through your pension provider or they may send you annual pension statements. That way you can see as your pension grows how much you are actually going to receive in retirement. We overpaid into our pensions from our mid twenties and it massively increases the amount you will get especially as you are still relatively young. It is also the most tax efficient way of saving there is.

    The projections for the pension I currently pay into are as follows:

    Low

    Projected Pension Fund Value - £85,357.
    Tax Free Cash - £21,339.
    Projected Pension Each Year - £2641.

    Medium

    Projected Pension Fund Value - £192,174
    Tax Free Cash - £48,044.
    Projected Pension Each Year - £7,720.

    High

    Projected Pension Fund Value - £428,127.
    Tax Free Cash - £107.032.
    Projected Pension Each Year - £21,524.
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