works pension

sibyrne

Hi I'm new to the forum! I've only started thinking about pensions probably in the last 5 yrs, I was a low paid agency worker until I was about 27 so could never afford to pay into one. I'm now 36 and have two pension pots, one is from my old job and will only be about 4k and I'm not sure were my current works pension is up too. I've paid into my current one for 6 years, I pay 6% to get my companies maximum contribution which is 9%, last year I decided to pay a bit more and did the same this year when I got my payrise, so I now put 8% in. I was wondering if this is the best option, should I be putting that extra 2% into my works pension or could there be any benefit from putting it into a private one? Any advice would be greatly appreciated.

dunstonh

I was wondering if this is the best option, should I be putting that extra 2% into my works pension or could there be any benefit from putting it into a private one?

It would need an analysis of the workplace pension vs alternatives.

It sounds like it is a money purchase scheme. So, really the only difference is going to be charges, administration and investment selection. If your workplace scheme offers salary sacrifice then this will not be available on the individual scheme.

Is the amount you are looking to pay extra worth opening an additional pension for?

Southend1

If you expect to be a basic rate tax payer in retirement, have you considered a LISA for the additional unmatched contributions?

MallyGirl

Southend1 wrote: »

If you expect to be a basic rate tax payer in retirement, have you considered a LISA for the additional unmatched contributions?

certainly worth opening one with a £1 before you turn 40 just in case.