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Stakeholder Pension
PROLIANT
Posts: 6,396 Forumite
Hello, I'm new to this forum so please excuse my noob'ish question but my company has given me a pack for a stakeholder pension to look at and fill in if I choose to go-ahead with it, I have never held a pension before in my life and I am not sure what to do as I am on a low salary and can't afford the monthly payments, the minimum payment is 3% and the company will mach that, but I can't afford to give £35 per month as I just get by on what I currently earn, there is no overtime paid and have not got any spare time to take up a part-time job due to my studies at home, any suggestions will be welcome thank you.
Since when has the world of computer software design been about what people want? This is a simple question of evolution. The day is quickly coming when every knee will bow down to a silicon fist, and you will all beg your binary gods for mercy.
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the minimum payment is 3% and the company will mach that,
That matches what they will be forced to pay from 2012 and is good value.but I can't afford to give £35 per month as I just get by on what I currently earn
The 3% contribution is gross, not net. The actual cost to you is £28 as the Govt adds the other £7. For that £28 you pay, a total of £70 will be put in your pension.
If you do not join you will be throwing away £42 each month of free money.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks mate, I will have to re-sort my finances then because what you have said makes more sense. :beer:Since when has the world of computer software design been about what people want? This is a simple question of evolution. The day is quickly coming when every knee will bow down to a silicon fist, and you will all beg your binary gods for mercy.0
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So you can work things out more accurately, the actual net cost to you (as in how much your pay will be reduced is 2.4% (0.6% being the tax relief). So, take your gross pay and multiply it by 2.4% to see how much that comes out and that is how much your pay will go down by to fund the pension.
It may require you to juggle a bit but if you can then it looks like it will be worth it. Especially if you are in your 20s or 30sI am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
27 mate, don't want to die skint!Since when has the world of computer software design been about what people want? This is a simple question of evolution. The day is quickly coming when every knee will bow down to a silicon fist, and you will all beg your binary gods for mercy.0
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£70 going into a pension at 27 (and assuming you keep it at that amount in real terms - i.e. not still paying £70 in 10 years or 20 years but a figure increased by inflation) could see you with a pension pot of around £185k in real terms. Thats £46k paid to you as a tax free lump sum and about £9k a year private pension income (in todays money). Stick the state pension on top and ignoring anything extra you may do in life and thats not bad going for £28pm.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Well, if I see that sort of income when I retire, I will by you a pint or two, so see you in the Duncow around June 2048. :beer:Since when has the world of computer software design been about what people want? This is a simple question of evolution. The day is quickly coming when every knee will bow down to a silicon fist, and you will all beg your binary gods for mercy.0
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