Pension advice for 20 year olds

bic321

I am so confused with setting up a pension. I don't know where to start.
I will soon be placed into the word based pension, however I am not happy in my job and wish to move soon. If I pay money into the pension can my employers take any money away when I leave?


I am thinking of setting up a private pension, do I need to see a financial advisor for this?


Any tips on how to start this process is great!
My salary is 20,000, so I know I cant save much. But any advice or step by step on how to set one up id be grateful . All the different advice online is confusing me

dunstonh

If I pay money into the pension can my employers take any money away when I leave?

In most cases, you can transfer the pensions to another.

I am thinking of setting up a private pension, do I need to see a financial advisor for this?

No you don't.

Any tips on how to start this process is great!

Wait until you get into work and join the workplace scheme.

My salary is 20,000, so I know I cant save much.

So, you could be looking to pay around £160pm gross (including employer contribution)

All the different advice online is confusing me

You dont get advice online. That is what the adviser does.

zagfles

The TPAS site is quite good at explaining pensions in plain English http://www.pensionsadvisoryservice.org.uk

El_Torro

You're better off focusing on your workplace pension as your employer contributes to it too, which makes it more attractive than getting a personal pension.

Pincher

I would view a pension as a way of collecting other people's money: Employer's contribution, tax relief. A personal pension means YOU are paying the set up charge, ongoing management fees.


Then there's Help To Buy ISA, with top-ups from the government,
which is traditionally a way of building a nest egg, by buying a house, and so a form of pension, too.

xylophone

In your position I would join the scheme in order to get the employer's contribution.

If you leave ( not before having secured another job, one hopes), you can explore the possibility of transferring the pension to your new employer's scheme, or to a personal pension.

Even if this were not possible, you could leave the benefits accrued in the scheme and draw them when you became eligible.