Pensions for mums

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
5 replies 612 views
lcharleslcharles Forumite
4 Posts
Hi...this is my situ

I've worked for a company for 7 years where the company would not allow employees to have a pension unitl you reach the age of 30. Unfornately the company close the office and made everyone redundant (July 2005).

I'm now a mum working with a child of 2 years old, as a full-time contractor at a major company but obviously I would not be able to reap their benefits. There is no guarantee to be employed by this company and I wanted to know what Pension company to consider...the things to note are that my contract ends June 2008, within this time I may want to consider having another child. When I go back to work after having my second child, it will be part-time.

So my question is do I hold tight and wait until I settle in a company where i can contribute or do I do this off my own back now. My concerns are that I cannot afford the payments once I have my 2nd child

Replies

  • dunstonhdunstonh Forumite
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    Pensions are very much pay as you go nowadays so you can stop and start when needed. To make sure of that you should look to a stakeholder pension (although most personal pensions would be fine as well but some would not suit).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestorEdInvestor
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    If you have no employer's contribution you may find the extra flexibility provided by saving in a stocks and shares ISA to be more useful at this stage.
    Trying to keep it simple...;)
  • dunstonhdunstonh Forumite
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    Ed, you should add the warnings that the ISA will provide a lower income as most people use pensions for income provision.

    The ISA may be more flexible in that you can keep the capital (although if you spend it your income goes down even more) but the pension will provide the highest income.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    Pensions are very much pay as you go nowadays so you can stop and start when needed. To make sure of that you should look to a stakeholder pension (although most personal pensions would be fine as well but some would not suit).


    Thank you for your feedback...so to clarify I can start a pension...stop contributing then go back in? What happens when I join a company who will contribute to my pension? Can they contribute to the one I've done off my own back?
  • dunstonhdunstonh Forumite
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    so to clarify I can start a pension...stop contributing then go back in?

    Yes with all stakeholder pensions and most personal pensions.
    What happens when I join a company who will contribute to my pension? Can they contribute to the one I've done off my own back?

    The company can either pay into it if they wish or you can transfer your pension into their own or you can leave your pension to grow alongside the company one.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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