saving V pension

nat_d

Hi

i will be starting a new job where the pension contributions from myself and my employer will be a lot less than my current local government pension. i would like to know whether to start a private pension or savings - which would give me the best return?
thanks

jem16

Savings are not suitable for retirement planning as the return is not good enough.

You will need to consider an investment of some sort - pension or S&S ISA. Are you planning to do this in addition to the pension being offered by your employer?

nat_d

hi

yes i am planning to run it along side the employers pension - what is a S&S iSA?

thanks

jem16

S&S ISA is a Stocks & Shares ISA.

You have an allowance of £7000 each year that you can use for Stocks and shares. If you have already used your £3k cash ISA it still allows you to use £4k on stocks and shares.

As to whether you would be better off with a pension much depends on your tax position and whether or not the employer is contributing. As you have said that your employer is contributing to a different pension and unless you are a higher rate taxpayer, you might be better off with a S&S ISA.

This way you have control over when you take it as ooposed to a pension where it is locked in until retirement age.

benood

What contributions will your new employer make? If any at all I'd be inclined to agree and take their pension and make additional savings via another route.

You can read up on different types of ISAs elseswhere on the site.

If I remember right there's a few threads talking about the relative merits of saving vs pensions - try searching the forum.