Will be starting a pension soon...

moneymass

So I'll be starting my graduate job next month and will start my first private pension with them.

They will pay 9% of my basic salary into a personal scheme with Standard Life Assurance and I can make my own contributions if I wish. Note the rate doesn't rise if I pay-in, it's a flat rate. I know this is a generous rate for an employer to pay so I would like to make the most of it.

I've done some rough numbers and could probably afford around 10-15% monthly into it after tax (and student loan repayments next year).

Points to note;

Very little expenses, debt- student loan only. Want to have a good pension (perhaps 'backup/guarenteed' income) for when I reach the needed age.

Also, I'm still 'reading the manual' as it were with pensions so I'm quite green with them to be honest.

Basically - first private pension, getting a good percentage rate, advice on how much to put in as opposed to an ISA since i'm getting a good employer rate (Yes I have been reading the sticky at the top of the page ) and any other advice in general.

Thankyou

dunstonh

Employer contribution to the max is the best thing you can have. Its free money.

After that whether you pay in more to that pension, another pension or ISA is really dependent on your plans, how you want to invest and you overall tax position as it is now and what it may be in retirement.

moneymass

dunstonh wrote: »

Employer contribution to the max is the best thing you can have. Its free money.

After that whether you pay in more to that pension, another pension or ISA is really dependent on your plans, how you want to invest and you overall tax position as it is now and what it may be in retirement.

Thanks, my tax status is a little 'iffy' (or unknown to me) just now because of the nature of my future work. I'll be eligible (if things go to plan) for an income tax exemption and i'm trying to find out how this impacts things.