Pension advice please... I'm really confused

meerustar

Hello ... I don't usually venture this high up in the boards .. I feel dizzy

Anyway ...

My son is 17 and is working as an apprentice electrian. He works for Morrisons Groups in Manchester (not the supermarket, lol) and has been sent today, all the paperwork to join the pension scheme.(Fidelity) He doesn't understand all that and so asked me to look through it.

I have and I can't make head nor tail of it.

I don't have a pension scheme, neither does OH (we thought we'd never get old :rolleyes: ) and so really want our son to start now.

From what I understand, it is a stakeholder pension and his employers will match whatever he pays in. It asks us to fill out a form asking what percentage of his wage he wants paying in ... this is where I get stuck as I don't know what to suggest.

He earns £160 per week before tax and NI and I think he pays a bit towards a union too (can't ask him now as he's at the gym) ...

Does anyone have any idea what the average percentage is?

Also, there is a Life Assurance form to fill in a nominate form for someone to receive monies if he dies:eek:

I've read through this thread and tried to find answers or explanations on pensions in laymans terms, but I'm getting a headache as I don't undestand any of it.

Can anyone explain it to me in simple terms (so I can look clever to my son when he gets back in )

TIA

ffacoffipawb

meerustar wrote: »

Hello ... I don't usually venture this high up in the boards .. I feel dizzy

Anyway ...

My son is 17 and is working as an apprentice electrian. He works for Morrisons Groups in Manchester (not the supermarket, lol) and has been sent today, all the paperwork to join the pension scheme.(Fidelity) He doesn't understand all that and so asked me to look through it.

I have and I can't make head nor tail of it.

I don't have a pension scheme, neither does OH (we thought we'd never get old :rolleyes: ) and so really want our son to start now.

From what I understand, it is a stakeholder pension and his employers will match whatever he pays in. It asks us to fill out a form asking what percentage of his wage he wants paying in ... this is where I get stuck as I don't know what to suggest.

He earns £160 per week before tax and NI and I think he pays a bit towards a union too (can't ask him now as he's at the gym) ...

Does anyone have any idea what the average percentage is?

Also, there is a Life Assurance form to fill in a nominate form for someone to receive monies if he dies:eek:

I've read through this thread and tried to find answers or explanations on pensions in laymans terms, but I'm getting a headache as I don't undestand any of it.

Can anyone explain it to me in simple terms (so I can look clever to my son when he gets back in )

TIA

A rough rule of thumb is half your age as a percentage when you start, so I make that 8.5%, approx £14 a week (net cost about £11 per week).

Blowsy

Firstly, congratulations for realising the importance of your son setting up a pension early... he may not thank you now but I promise you in the future he'll be glad that you encouraged him to start!!

Typically employers will only match your son's contributions up to a certain percentage of his salary each month. I'd suggest that you encourage him to contribute much as he can upto the amount matched by his employer, beyond that it's not quite so effective but worthwhile nonetheless.

PS - It's never too late for you and your OH to start paying into a pension, the tax breaks are fantastic!

Drop me a PM if you need any more info or if I can be of further help.

cyclonebri1

Blowsy wrote: »

Firstly, congratulations for realising the importance of your son setting up a pension early... he may not thank you now but I promise you in the future he'll be glad that you encouraged him to start!!

Typically employers will only match your son's contributions up to a certain percentage of his salary each month. I'd suggest that you encourage him to contribute much as he can upto the amount matched by his employer, beyond that it's not quite so effective but worthwhile nonetheless.

PS - It's never too late for you and your OH to start paying into a pension, the tax breaks are fantastic!

Drop me a PM if you need any more info or if I can be of further help.

Totally agree, you are trying to ensure your son is safe, if he starts this early he will be,:T

Now, time to start thinking of yourselves,:j :j :j

thefellow

yes its true can be very very confusing