How do you buy/start an extra pension?

Blue_Bird

Hi, I've been having a browse on the forum and a few other places, but just after some pointers from knowledgeable forumites!

How do I start a pension? How do I decide how much to pay into it? Is it possible to vary how much you pay a month into it? I've only ever had company ones, it's a bit scary going it alone!

I've got a Military pension (which is mostly AFPS 15, for those in the know, which means it's not briliant, for those not in the know) and I think it would be sensible to supplement it with another ?one (or more, I have no idea!) I transferred some years from a previous civvy pension, if that matters. I'm 30 years old with a decent disposable income and about to buy a house, which may end up as a BTL at some point, but not for a few years.

Any advice/pointers much appreciated.

Blue

Mistermeaner

Google sipp

Do lots of reading, both in this forum and in savings and investments - then come back with more specific questions and provide more info about you and your circumstances such as to get meaningful answers.

Pension = good , but you don't know what the question is yet so we can't possibly answer it for you

xylophone

Are you currently serving?

Blue_Bird

Mistermeaner wrote: »

Google sipp

Do lots of reading, both in this forum and in savings and investments - then come back with more specific questions and provide more info about you and your circumstances such as to get meaningful answers.

Pension = good , but you don't know what the question is yet so we can't possibly answer it for you

Will do, thanks.

xylophone wrote: »

Are you currently serving?

Yes I am.

xylophone

http://www.moneyforce.org.uk/Managing-money/Plan/Pensions/Personal-pensions

may be worth a look.

Mistermeaner

Good questions to ask yourself and tell us;

How old you are
How's your health
How long will you live
What do you earn now
What might you earn
How long have you been working
How long are you going to keep working
What do you do and how are you paid
Might you get a big inheretence one day
Do you own a house
Do you have a mortgage / rent
Are you married
Do you have kids
Might you have a wife and kids one day
Do you have any savings
Do you have any debts
What does your workplace pension offer


General order of things is pay off all debts, apart from mortgage
If you haven't got a mortgage, it might be good to get one, save a deposit first
Once you have a home and mortgage and debts paid off, save up an emergency cash fund - say 3-6 months expenses
Then look at pension (if you can't do it simultaneously)
Generally any sort of final salary or career average scheme is good
Your workplace should offer you something, usually with them matching your contributions - this is normally good
If you're self employed you may need to make your own arrangements - this can be harder.
Give or take however much you save will pay you 3% per annum as a pension : each 100k you put away will give you 3k per annum back when you're old (inflation adjusted)
That's not much - you need to save lots and lots. If you work for 30 years, and save 10k per year (800/month) your pension will be worth approx 15k per annum (with allowance for growth)
Most people save nowhere near that - you should try and be someone who does

atush

For someone with a DB pension like you, to retire early having a PP or sipp is a good idea. But when to start it will depend on a load of things.

Like any debt? what savings do you have? You should make sure you have an emergency pot (can be put together with your deposit for now for the house, but should be separate later).

When do you plan to leave service? What rate of tax do you pay? If paying BRT, and planning to leave soonish, i'd open a S&S isa for the moment instead of a pension as it is mroe flexible. The money can always be pensioned later.

But if youw ant a PP now, then look at HL and Cavendish online, And look at reading up on investing, here, thru books like Tim Hale's, and thru blogs websites such as Monevator, Motley Fool, etc. Learn about risk, asset classes, compounding returns, diversification etc.

But if you w ant to get started now, look at a global tracker or vanguard funds until you do- as these are diversified. This goes for a pension or an ISA.

Blue_Bird

Mistermeaner wrote: »

Good questions to ask yourself and tell us;

How old you are 31
How's your health Excellent
How long will you live - Women do well in my family, so I'll have a punt at 90

What do you earn now £30k
What might you earn Never less than that without something to fall back on
How long have you been working Since 18 as a civvy, 26 as MOD
How long are you going to keep working Probably longer than state pension age.
What do you do and how are you paid Monthly by the MOD
Might you get a big inheritance one day Unlikely
Do you own a house Not yet
Do you have a mortgage / rent No
Are you married No
Do you have kids
Might you have a wife and kids one day Unlikely (and not just as I'm a straight woman!)
Do you have any savings Yes - House deposit and money I can pull in - approx 3k from holiday/car repairs if absolutely necessary
Do you have any debts No
What does your workplace pension offer Not entirely sure - Seems to be about 3k a year at age 67 at the moment?


General order of things is pay off all debts, apart from mortgage
If you haven't got a mortgage, it might be good to get one, save a deposit first
Once you have a home and mortgage and debts paid off, save up an emergency cash fund - say 3-6 months expenses
Then look at pension (if you can't do it simultaneously)
Generally any sort of final salary or career average scheme is good
Your workplace should offer you something, usually with them matching your contributions - this is normally good
If you're self employed you may need to make your own arrangements - this can be harder.
Give or take however much you save will pay you 3% per annum as a pension : each 100k you put away will give you 3k per annum back when you're old (inflation adjusted)
That's not much - you need to save lots and lots. If you work for 30 years, and save 10k per year (800/month) your pension will be worth approx 15k per annum (with allowance for growth)
Most people save nowhere near that - you should try and be someone who does

Wow, 800 a month is a huge amount :eek:
I suppose it gives a figure to aim for!

xylophone wrote: »

http://www.moneyforce.org.uk/Managing-money/Plan/Pensions/Personal-pensions

may be worth a look.

Thanks, I'm investigating this.

Mistermeaner wrote: »

Google sipp

Do lots of reading, both in this forum and in savings and investments - then come back with more specific questions and provide more info about you and your circumstances such as to get meaningful answers.

Pension = good , but you don't know what the question is yet so we can't possibly answer it for you

This does make sense, I'll do more reading.

Thank you all, much appreciated.

Blue