Pension help?

bristolboy25

I have a pension with my work, they pay 5% and I pay 5% each month, done this for 5 years now and hope to with my company for the long future if possible.

I am 30 Years old so started at 25 and got 2 years with another company as well running along side.

My question is how can I best work out what I will get on loose interest rate samples and how to work out if it is best to pay more in or not.

I also wonder is it better to take lump sum on retirement or annual?

Is there any good sites on pensions in UK?

dunstonh

Lump sum on retirement is something you shouldnt worry about too much. It would be sensible to factor in that you will take it but its quite possible (almost probable) that the rules would have changed before you get there.

As for interest rates, unless you are invested in cash, then interest rates are not really applicable. Depending on where you investments are you should use between 3 and 7% annual growth for projections. It really depends on the fund potential and you dont mention what funds are you invested in. Or even, if the pension is money purchase (although i assumed that).

Pal

Any pension where the employer pays in is worth joining, and if the employer matches contributions above 5% then it is definitely worth paying extra to get their contributions as well if you can afford to do so.

The pension provider will send you an annual statement projecting your pension forward and showing you how much you might receive based on a number of assumptions. If you ask them they might produce alternative statements showing the expected pension based on higher contribution rates.