Pension Advice

Looeess_2

I've started a new job and I am considering joining the company pension scheme. I admit I am clueless when it comes to pensions. I wonder if someone here could advise me.

My age 34
My annual salary - £19757
Minimum contribution allowed from me - 4% of basic salary (salary sacrifice option is voluntary)
Company contribution - 5% of basic salary
I can choose to pay into 100% Cash Fund or 100% Managed Fund (the default option for employees is the 100% Managed Fund).

Questions:
1. Would it be better to choose the Cash Fund or Managed Fund?
2. What contribution amount should I be aiming for? I've read somewhere online a calculation for deciding how much is to take your age and divide it by 2 to get the percentage. Is that right? That would mean I should aim for 17% (£3358.69 pa). That's nearly £280 per month.

dunstonh

1. Would it be better to choose the Cash Fund or Managed Fund?

If they are the only two options then easily the managed fund at your age.

2. What contribution amount should I be aiming for? I've read somewhere online a calculation for deciding how much is to take your age and divide it by 2 to get the percentage. Is that right?

How much do you want in retirement? once you know that you will be able to work out a figure that is required to fund it.