Pension plan

evosy1978

I have myself a pension fund from a n employer from years ago. Only just found out about it.

 I have some spare money each month. About £100.  Is it a good idea  to put some in or shall i overpay my mortgage? I know nothing about pensions... sorry

thanks

Nurse2047

depends I suppose on what pension you have and what it’s invested in and fees? 

eskbanker

Depends on a range of other factors too, regarding overall financial circumstances, such as proximity to pension age, other pensions, risk tolerance, mortgage rate, access to savings, job stability, etc, etc....

VXman

Firstly. there is a pension specific forum here...

Pensions, annuities & retirement planning — MoneySavingExpert Forum

I suppose you should think of putting money in a pension as a much more long term thing. You won't be able to access your pension until you are 55 and ideally you should be thinking longer term - more into your 60's. Really depends on your personal circumstances.

Over paying the mortgage is a good thing but presumably is a slightly more short term thing in comparison to retirement. It will give you more disposable income once it is paid off but won't necessarily help you out in your retirement. All this depends on your age which we don't know. The advantage of saving into a pension it the tax relief you get from the government. If you put £100 per month into a pension the government will add £25 each month so that is a positive thing over paying your mortgage off.

Then there is the question of the pension itself. You don't need to add the £100 to your (old) employers pension. You could open a new SIPP which is a personal pension managed by yourself. Then once you have a SIPP you will need to decide how it is invested.

Are you in a pension scheme with your present employer? You can consolidate your old pension into any present ones or new ones to keep it more manageable.



So many aspects to this. You really need to do a bit of research into the options and decide what your priorities are.

Albermarle

I know nothing about pensions... sorry

Probably a good idea to remedy this, your future self will thank you for it.

Pensions: Everything you need to know for retirement - MSE (moneysavingexpert.com)
Pensions and retirement | Help with pensions and retirement | MoneyHelper