New pension query

Unicorn_cottage
Unicorn_cottage Posts: 879 Forumite
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in Pensions, annuities & retirement planning
Hi all

I join a new workplace tomorrow and they offer a pension scheme with Legal and General (Multi Asset Fund). The employer will match my contribution up to a maximum of 10%. I am thinking of going in the whole hog as I only have a small pension pot made up of various pots all over the place. I take it is a no brainer to put in the 10%.

Sorry am not confident with pensions so just thought I would ask.

Thanks
"Everything comes to him who hustles while he waits" Thomas Edison
Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:

Comments

  • xylophone
    xylophone Posts: 44,394 Forumite
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    It seems to me a good idea to put in as much as will get you the maximum employer contribution.

    Might it be worth considering (if possible and financially beneficial) transferring other pensions into your new one?

    Or amalgamating them into a personal pension/SIPP?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    The employers contribution of 10% is free money. You'd be daft to decline.
  • Unicorn_cottage
    Unicorn_cottage Posts: 879 Forumite
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    Thank you for the responses. What is the key info for understanding pensions? I hear people talking about deferred pensions etc but the 1 I would be joining is a group - does that make a difference? Also I hear a lot about the age when you can take a cash lump sum - is this also key? I ask because I have a pension from years ago and I just paid into it without thinking so I guess I need to know what type it is and what this means etc?
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • xylophone
    xylophone Posts: 44,394 Forumite
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    What are your other pensions?

    Are they "defined benefit" or defined contribution/money purchase?

    https://www.pensionwise.gov.uk/en/pension-types

    How old are you?
  • Unicorn_cottage
    Unicorn_cottage Posts: 879 Forumite
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    I don't know to be honest this is the info I need to start gathering. 1 is with NEST.

    I am 43.
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • Unicorn_cottage
    Unicorn_cottage Posts: 879 Forumite
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    Others are with USS (tiny pot), Aegon and L&G.
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • Marcon
    Marcon Posts: 10,661 Forumite
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    Minimum age you can take anything from your pension savings is normally 55, but that's expected to increase.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • LHW99
    LHW99 Posts: 4,211 Forumite
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    Unless the USS one is from the last few years, it's possibly a DB (final salary) scheme.
    You would probably have got a letter when you left, summarising what you had earned up to that date.
    You can put that in the calculators on the USS site to get an idea what is would be worth at your retirement age.
    https://www.ussbenefitmodeller.co.uk/deferred/pension_increase
  • tacpot12
    tacpot12 Posts: 7,962 Forumite
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    Yes, It's a no-brainer to contribute the maximum (providing you can afford to lose the money). But you will actually only be losing 8% of your salary because of the tax relief that makes your contribution upto 10%. It might even be less than 8% of your salary if your employer operates a salary sacrifice scheme for pension payments, so for 8% (or less) of your salary you get 20% put into your pension.

    The L&G Multi Asset Funds are good funds in my experience.

    And you get to take 25% of the resulting pot as tax-free income or a lump sum, so it really is a no-brainer.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • xylophone
    xylophone Posts: 44,394 Forumite
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    The NEST pension is DC and it is probable that the L&G and Aegon are standard money purchase pensions - it might be worth exploring a transfer in to your current pension scheme.

    The USS is probably DB - you should check the benefits as above.
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