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Pension - What would you do?

Just landed a new job and the pension scheme seems very good with the new employer. Currently paying 1% into peoplespension and employer contributes 1%.


Here are the options I have with the new employer.
Which looks like the best option? I am young early 20s and still live with parents.

http://oi65.tinypic.com/2d8if6p.jpg

Comments

  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    Pay in at least 4% of your salary if that gets the biggest employer contribution of 7%.
  • JoeCrystal
    JoeCrystal Posts: 3,394 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Pay 4% to get 7% employer's contribution. Extra free money!
  • JoeCrystal wrote: »
    Pay 4% to get 7% employer's contribution. Extra free money!

    Some questions have rather easy answers!
  • dunstonh
    dunstonh Posts: 120,390 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The answers above are correct. You should pay in to get as much "free money" from the employer as possible. Nothing beats free money.

    Plus 1% each from you and employer is peanuts. It doesn't help you at all. Retirement planning is important. You shouldnt pay lip service to it by paying silly amounts in. 11% total contribution for someone in their 20s is spot on to what you would expect to be paying. Having the employer pay 2/3rds of it for makes it a total no brainer.
    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.
  • tasticz
    tasticz Posts: 774 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Thanks guys 4% it is then!
This discussion has been closed.
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