Pension types what should I get?!

So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...

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  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,081 Forumite
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    RebekahR said:
    So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...
    If you have been an employee why weren't you in your employers schemes?
  • poseidon1
    poseidon1 Posts: 1,058 Forumite
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    RebekahR said:
    So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...
    If you have been an employee why weren't you in your employers schemes?
    A couple of the OP's previous posts for relevant background.

    https://forums.moneysavingexpert.com/discussion/6432583/husband-deals-with-all-the-finances#latest

    https://forums.moneysavingexpert.com/discussion/6427572/pension-top-up-help-for-a-41-year-old#latest


  • RebekahR
    RebekahR Posts: 5,987 Forumite
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    RebekahR said:
    So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...
    If you have been an employee why weren't you in your employers schemes?

    I was in low paid jobs and needed all the money to survive to opted out
  • QrizB
    QrizB Posts: 16,547 Forumite
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    RebekahR said:
    So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...
    Is your financial situation still as described in the threads linked above, with your only income being an allowance from your husband?
    It's really easy to start a private pension - you could do it this afternoon - but you'll need a source of money to fund it. Would your husband be happy to do this?

    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 33MWh generated, long-term average 2.6 Os.
    Not exactly back from my break, but dipping in and out of the forum.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
  • RebekahR
    RebekahR Posts: 5,987 Forumite
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    QrizB said:
    RebekahR said:
    So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...
    Is your financial situation still as described in the threads linked above, with your only income being an allowance from your husband?
    It's really easy to start a private pension - you could do it this afternoon - but you'll need a source of money to fund it. Would your husband be happy to do this?


    It is. How much do I need to fund it and does it need paying in regularly?
  • QrizB
    QrizB Posts: 16,547 Forumite
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    edited 4 January at 4:21PM
    RebekahR said:
    QrizB said:
    RebekahR said:
    So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...
    Is your financial situation still as described in the threads linked above, with your only income being an allowance from your husband?
    It's really easy to start a private pension - you could do it this afternoon - but you'll need a source of money to fund it. Would your husband be happy to do this?

    It is. How much do I need to fund it and does it need paying in regularly?

    If you don't work, you can pay £2880 a year (equivalent to £240 a month) into a private pension. The government will top this up to £3600 with tax relief. Inside the pension you can invest it with the goal that it'll grow until you decide to retire (which will be after you are 57 or 58, depending on exactly how old you are now).
    The tax year ends in early April so you could start with a lump sum of 9x £240 (£2160) to catch up with the nine months that have already gone, then continue with £240 a month after that.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 33MWh generated, long-term average 2.6 Os.
    Not exactly back from my break, but dipping in and out of the forum.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
  • Marcon
    Marcon Posts: 13,742 Forumite
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    RebekahR said:
    So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...
    A private pension usually means any 'non state' pension, so there's no difference between a private pension and an employee pension - both are 'private provision' as opposed to state.

    Get a job and your employer will contribute - and you'll have some money of your own.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • RebekahR
    RebekahR Posts: 5,987 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    QrizB said:
    RebekahR said:
    QrizB said:
    RebekahR said:
    So is a private pension better than an employee pension? I have never ever had a pension as long as I've worked and don't have a private one. I would like to get a private one but how do I go about it? What's best? Or is an employee one best in which case I should get a job ...
    Is your financial situation still as described in the threads linked above, with your only income being an allowance from your husband?
    It's really easy to start a private pension - you could do it this afternoon - but you'll need a source of money to fund it. Would your husband be happy to do this?

    It is. How much do I need to fund it and does it need paying in regularly?

    If you don't work, you can pay £2880 a year (equivalent to £240 a month) into a private pension. The government will top this up to £3600 with tax relief. Inside the pension you can invest it with the goal that it'll grow until you decide to retire (which will be after you are 57 or 58, depending on exactly how old you are now).
    The tax year ends in early April so you could start with a lump sum of 9x £240 (£2160) to catch up with the nine months that have already gone, then continue with £240 a month after that.

    Quite sizeable amounts then but worth knowing! Thank you!
  • QrizB
    QrizB Posts: 16,547 Forumite
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    RebekahR said:
    Quite sizeable amounts then but worth knowing! Thank you!
    You can pay less than £240 a month, but then your pension is worth less at the end.
    The aim is usually to have a six-figure sum in your pension when you retire. £100k, plus a full state pension, should be enough for you to enjoy a modest (but not breadline) retirement.
    It's easier if you work, since an income enables you to pay more than £240 a month (plus your employer will also make a contribution). But for a non-earner, £240 a month is the limit.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 33MWh generated, long-term average 2.6 Os.
    Not exactly back from my break, but dipping in and out of the forum.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
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