Pension help

PennyCrayon_2

Hi,

I am a 24-year-old Graduate, and i am thinking about starting a pension this year as i was advised that the more i put in when i am young the less i will have to put in when i am older. I have tried to research the various types of pension available but am in need of guidance. My employer offers a Stakeholder Pension (which i think might be the best one for me).

Any advice most welcome

dunstonh

as i was advised that the more i put in when i am young the less i will have to put in when i am older

True on the basis that you wont have to make up for missed time. However, many blow it by forgetting to increase their payments so make sure any option you take increases your payments annually otherwise the early start will be lost.

I have tried to research the various types of pension available but am in need of guidance. My employer offers a Stakeholder Pension (which i think might be the best one for me).

Does the employer pay into it?

If yes, go with that as its free money. If not, then usually its worth looking at your own as it gives me choice for investments and you can arrange one that suits your terms and not the employer.

PennyCrayon_2

Thank you for replying to my post. I have checked my contract and it says that the company do not make any contributions to the scheme. It also says that a contracting-out certificate is not in force. Any ideas as to what this means? Has something to do with amount earned i think.

Many thanks

dunstonh

it says that the company do not make any contributions to the scheme.

pick your own pension then.

It also says that a contracting-out certificate is not in force.

it means you are not contracted out of the second state pension with their scheme.

Whitney_2

Hi,
I have recently left my company who automatically set me up on a pension scheme and also made contributions. I have now entered into a new firm, but it does not provide any pension schemes or contributions.
I need to transfer the amount I have saved from my previous pension over to a personal pension soon, if not they will basically keep my money. However, I have no idea what pension is best and where to maximise my pension opportunity.
As far as i'm aware I was on a higher risk pension with the old firm. I am a recent graduate as well so have a long time to save... could you give me some advice as to what is the best way to go about finding a good "safe" fund to invest in?
Thanks for your help!

dunstonh

As far as i'm aware I was on a higher risk pension with the old firm.

Pensions are just a tax wrapper. A container for the investments. The investments are what contains the risk.

could you give me some advice as to what is the best way to go about finding a good "safe" fund to invest in?

Single fund investing is not good investing. You are virtually guaranteeing poor returns over the long term. The single funds that you would typically be looking at given your brief are jack of all trades, master of none. Is that what you really want?