starting a pension

HardCoreProgrammer

dunstonh wrote: »

yes there is. You forget the 25% tax free cash at the end which means only 75% of the pot is taxable (and only the amount above the personal allowance).

Pension policies change over time. OP has more than 40 years to go before drawing the pension. Do you seriously think that it will still be possible to withdraw 25% tax free cash in 40 years time?

dunstonh

HardCoreProgrammer wrote: »

Pension policies change over time. OP has more than 40 years to go before drawing the pension. Do you seriously think that it will still be possible to withdraw 25% tax free cash in 40 years time?

Or the ISA and pension wrappers could be merged meaning all those that got tax relief get more than those that went into ISA.

That said, the 25% tax free lump sum was set in 1988. Nearly 30 years ago. The tax free lump sum existed many decades before that. So, its more than possible.

FatherAbraham

kayleigh_b wrote: »

Hi, i am 26 years old and looking into starting up an account for a pension, looking into putting weekly payments in myself... Has anyone got any advice with who to do this with and what the best thing to do is.
Any info much appreciated.

Kayleigh, this sounds like a great attitude to securing your financial future. Ignore the haters and doom-sayers.

You'll be able to set up a monthly direct debit to contribute to your personal pension (rather than weekly).

There's some great information to get you started in the Discount-Pensions article on this website: http://www.moneysavingexpert.com/savings/discount-pensions

Warmest regards,
FA

atush

HardCoreProgrammer wrote: »

Pension policies change over time. OP has more than 40 years to go before drawing the pension. Do you seriously think that it will still be possible to withdraw 25% tax free cash in 40 years time?

Yes, I do. Can see any govt taking it away committing electoral suicide. Kind of like labor electing corbin leader?

HardCoreProgrammer

atush wrote: »

Yes, I do. Can see any govt taking it away committing electoral suicide. Kind of like labor electing corbin leader?

We may have to agree to disagree, but I have to point out that this statement is facile (you are not putting any of your own money at risk) and misleading (based on the assumption that governments are in a position not to commit electoral suicide - look at what happened to Greece recently).
In case you have missed, earlier this year there were numerous newspaper articles saying 25% lump sum may be abolished.
Are you going to compensate the OP this happens?

Declaration of interest: I have a pension, plan to retire in about 20 years time and am not counting on the 25% lump sum for my financial planning.

greenglide

But it would be childishly simple to transitionally protect any contributions made before the PCLS ceased so it becomes a non - issue in this case.

atush

HardCoreProgrammer wrote: »

We may have to agree to disagree, but I have to point out that this statement is facile (you are not putting any of your own money at risk) and misleading (based on the assumption that governments are in a position not to commit electoral suicide - look at what happened to Greece recently).

Declaration of interest: I have a pension, plan to retire in about 20 years time and am not counting on the 25% lump sum for my financial planning.

We have to agree to disagree, as your assumptions (Please, calling Me facile? REally?).

nothing has yet 'happened to Greece' (or in effect its actual govt however silly they might be).

And

In case you have missed, earlier this year http://www.amazon.co.uk/there were numerous newspaper articles saying 25% lump sum may be abolished.
Are you going to compensate the OP this happens?

In case you may have missed this, labor lost and I can't see any one still saying this will happen. And if they did, I dont believe every thing I read.

philwal_2

There have been rumours about abolishing 25% tax free lump some for many years even more so after it was renamed pension commencement lump sum but it has not happened.

neilvw

philwal wrote: »

There have been rumours about abolishing 25% tax free lump some for many years even more so after it was renamed pension commencement lump sum but it has not happened.

Wasn't the reason for that formal name, the very good reason that it's not always tax-free (since the Lifetime Allowance was introduced)?

LHW99

Going back to the OP's question
Start now, with as much as you can. One main advantage (as well as disadvantage) of pensions is that you can't get at them - there are times in most people's lives when the present needs temp you to use long term savings - pensions are safe from that.
Get the employers' contributions once that starts - and if its only small, you can continue to add to your own savings at the same time.
The aim of the new state pension is to keep people above state benefit level, so any additional private pension savings for someone as young as the OP will improve her retirement income, even if only by a little.