Second pension

Jimmyc

I'm curently exploring options for boosting my income in retirement.

I currently have a pension at work and am contributing the maximum, my employer contributes 2 x what I contribute.

I'm mid 30's and only started my pension a few years ago and have only recently maxed out my contributions.

im looking at starting another pension to increase my income during retirement.

The amount I want to invest at the minute is around £30-£50 a month but in a couple of years when my work shave save finishes I will increase this amount to £100-£150.

i would rather start now even though the contributions are small.

A stakeholder pension seems the best option due to the contribution rate, And it looks like available have the lowest fee's.
Would this be my best option or would something suit me better.

ischofie1

You say the Co pay's 2 x what you pay but there's normally a limit on they pay, I.E. to a max of 10% or whatever.
This doesn't stop you continuing to pay more after the Co contribution has maxed out.
Stakeholder pensions are a bit niche (old hat) so probably not the best.
For such a smallish (£30-£50) contribution, a 2nd pension may not be an option.
I think many want £125 as a minimum.
Upping your existing contribution may be your best & simplistic route.

Jimmyc

I pay 5%, they pay 10%.
We used to be able to but I don't think we can contribute anymore. I will have to check, I'm sure I called up before, and they said we couldn't.
I've seen a few around still which allow an investment from £20 upwards.

TBagpuss

As ischofie says, first check the rules of your work pension.

I suspect it says something like [Employer] will pay 2% of salary for every 1% you pay in, up to maximum of £x / x%. That wouldn't stop you paying in an extra £30-£50 month, it would just mean that your employer would't pay in an extra £60-£100 as well.

If you want, you could go to see an IFA with pensions expertise to discuss whether either now, or once you can afford £100-£150 more each month, it would be best to pay it into your current workplace pension or whether you would be better looking at other options.

ischofie1

Just to follow on from previous post.
HR often don't give the right info & they may not be used to people wanting to put more in.
If they say no then press them on the subject because it is unusual not to be able to put more in.

Regards

bigadaj

Jimmyc wrote: »

I currently have a pension at work and am contributing the maximum

100% of salary, that's impressive

Anonymous101

To add to the importance of checking on the work scheme depending how you pay into it you may also benefit from national insurance savings should you be contributing via a salary sacrifice scheme.

Certainly worth asking about.