Best pension for a late starter?

Airbags_2

Hi - I'm new to this site, so apologies if you have answered this question a million times already (just hard to find a relevant thread!).

I'm 37 years old (female) and have not been very good with money in the past, however I now earn a good wage and really, really need to sort out a pension for later life. Sometimes I wonder if I've left it too late and whether I should look at investing in property or elsewhere for a better return, but all I know is, I need to pull the finger out and sort something!

Any advice on the best pension scheme I should go for (or other options) would be greatly appreciated.

Rich1976

If your Company offers a pension scheme which they will contribute to, then that should be your first port of call.

Otherwise you can start a Stakeholder/personal pension usually with an insurance company.

At the other end of the scale are Sipps ( Self invested personal pensions) which are normally only suitable for people who have good investment knowledge and are prepared to choose from over 2000 funds. The charges can be quite high so you have to be paying in a lot to make these feasible.

With all pensions the government will add tax relief on all contributions up to 100% of your annual salary.

If a pension isn't for you because lets face it although they are tax efficient when you're paying in, when you come to retire and take an annuity you are locked in to whatever rate is available at the time which determines the income you'll get, you can always choose a stocks and shares ISA which you can access at any time should an emergency arise. They are not suitable retirement vehicles if you are going to dip into it whenever is necessary as this will reduce the value of the fund.

Liz_the_Whizz

Airbags

Just to echo what Rich said, first look at whether your employer has a pension scheme. Often employers will make matching contributions if you join, so this is free money to your pension pot.

Airbags_2

Thanks, both Rich & Liz

I should have mentioned previously that my company does not offer a pension scheme (contributory or otherwise) so it's not an option, I'm afraid

dunstonh

They will offer one from 2012. The NPSS comes in that year for companies that do not operate a company scheme. So, any measure you start now may only be temporary.

chesky369

But that shouldn't put her off doing something now - that's five years that could be wasted.

dunstonh

Totally correct chesky. The Govt "aims" to have NPSS in during 2012. The same Govt that has an awful track record of delivering on time with other finance acts (pensions A day was 2 years late).