28 and no pension

carl5363

I'm 28 and on 28k a year - currently contributing 0 to a pension fund.

My employer will be auto enrolling me in April next year. Am I best waiting until April or opening one myself now?

It's all confusing!

Thanks all

JoeCrystal

Well, does your employer already have the pension you can join now? If so, how much are they contributing if any? That should be your first port of call. The important thing is to start one and even more importantly, to contribute enough according to your need.

Pension is never confusing, this is what this forum is for! To answer the questions and hopefully clear up any confusion regarding the pension.

carl5363

JoeCrystal wrote: »

Well, does your employer already have the pension you can join? If so, how much are they contributing if any? That should be your first port of call. The important thing is to start one and even more importantly, to contribute enough according to your need.

Pension is never confusing, this is what this forum is for! To answer the questions and hopefully clear up any confusion regarding the pension.

Thanks for your response! No they don't have one now - I'm starting to get a little panicy. I should have started one 10 years ago!:(

carl5363

I've just opened a SIPP with HL, where I'll be putting in £80 a month (£100 including £20 from the government).

Their online system seems easy to use - in terms of picking the investments I've gone with the ones they recommend on their website.

Am I best speaking to an IFA regarding investment choices?

bigadaj

carl5363 wrote: »

I've just opened a SIPP with HL, where I'll be putting in £80 a month (£100 including £20 from the government).

Their online system seems easy to use - in terms of picking the investments I've gone with the ones they recommend on their website.

Am I best speaking to an IFA regarding investment choices?

Sums are really too low to deal with an ifa, also if you use an ifa they would normally manage investments and you've gone diy with hl.

What investments have you chosen, hl are a bit notorious for recommending those that pay then most rather than are best for the investor.

dunstonh

I've just opened a SIPP with HL, where I'll be putting in £80 a month (£100 including £20 from the government).

Thats a start but you need to be ramping those contributions up as you are at the minimum contribution level for most providers and paying an amount you can get away with at 18 but not so much at 28.

Am I best speaking to an IFA regarding investment choices?

If you were going to use an IFA, then you would not use HL as IFA platforms are cheaper than HL. However, the cost of the IFA would bring the cost higher in the short term (but recovered in the medium term).

Your contribution level doesnt really make it cost effective to use an IFA unless there is a family IFA.

carl5363

I actually changed the funds and went for a couple based on some research I did:

Old Mutual UK Alpha (Class U1) Accumulation
BNY Mellon Long Term Global Equity (Class Inst W) Accumulation

Also I could up the contributions - what would you suggest I contribute to make it worth while?

dunstonh

Old Mutual UK Alpha (Class U1) Accumulation
BNY Mellon Long Term Global Equity (Class Inst W) Accumulation

These are single sector funds that are really aimed to be held as part of a wider portfolio of single sector funds. The idea being that you put x% into each sector to build your own portfolio. Your amount isnt worth doing that (with around 10 sectors in most models). So, multi-asset funds would likely be best.

Also I could up the contributions - what would you suggest I contribute to make it worth while?

How much do you earn now?
Are we to assume you are looking at state retirement age for retiring (68-70)?

carl5363

£28k per annum, although with bonuses and overtime I earnt closer to £35k last financial year.

My employer will be auto enrolling me into the compulsory one from April 2017 also but I don't have any details of this as of yet. I don't expect anything other than the minimum contribution from them though.

Thanks for the advise on the funds, I'll look into it further.

Based on me starting a pension at this late stage then not sure I will be able to retire before the state pension age. Me and my partner will own a house soon though so could be used later down the line.

atush

Do you have any debts? Any cash savings? Do you use your S&S isa allowance?

I would certainly be saving your money somewhere, if in a pension or not when you will have one starting in less than a year I am not sure.