Question about the 'golden rule' of paying in to your pension

kev2009

Thanks all for clarifying

I originally took out a private pension when i was just under 25 and not knowing the full ins and out's i chose a fixed amount to pay in each month and then the tax went in on top and i never increased it each year, it was always the same amount.

I kept that going for i think around 10 years. About half way through i got a perm job and joined company pension scheme of which i didn't need to pay into.

So after 10 years or there about's, I decided to transfer my private pension into my work pension and I then started to contribute a % of my salary into the company pension scheme which I have stuck with since. Main advantage being each pay rise, means a extra couple of quid goes into the pension.

Looking at the rule, even if you ignored the Private pension, when i started to contribute to the company pension I did actually take my age, half it and between companies and my contribution I hit the figure which I've used since as a percentage, so if you like, the private pension being added has been a nice addition/top up

i do from time to time play with the online tool my pension provider provides to see what i will get, I need to turn some things off such as 50% to partner as i'm single i'm not factoring that in, no dependants etc so no need in a guarantee x years for partner etc so that does help increase the figure they suggest I may get. Ten i toy with taking a lump sum or not, figure goes up more per month BUT it would take me approx 20+ years to make the lump sum payment so I may not bother with that, will need to assess when i'm closer to retiring and see what the situation is then.

Kev

Prism

For me personally I wish at the age of 23 someone had explained what 'risk' meant in relation to investing. I might have made a slightly better decision.