Company pension

[MYU]

About six months ago I joined the company pension, I don't know much about it but people said you should do it.

I started with 6% of my wages and was told by some that the company match what you pay in, however my company was paying very little each month. I questioned this and have been told the company only pay 1%.

My question is what should I do, carry on as normal, pay the same amount, or cancel it?

[WeAreQPR12]

Sounds like your company have nest. It is a compulsory for all companies. I am putting in 3%. Next year your company have to put in 2% plus you get good tax relief. I put in 3 because I am well behind with my pensions. If I was you mate I would wait until next year. If you're under 40 next April and can afford to put away 4k. They will give you 1,000 as a bonus so a very good 25% interest. You can save this up until retirement or take it out early if you're a 1st time buyer. Nest is decent and better than nothing but the latter is the best deal, unless you have a decent company contribution. Thanks for ticket on my way ;)

[MYU]

Thanks for the info mate, are you saying keep paying the 6% for now and I'll be 40 next year in July.

I've never paid into a pension before and I started about 6 months ago, I must be behind too?

Enjoy the game.

[WeAreQPR12]

I suggest for now you put in as much as you can that doesn't have an effect on your lifestyle. You get really good tax relief so at least this way you aren't paying more tax.

[MYU]

I suggest for now you put in as much as you can that doesn't have an effect on your lifestyle. You get really good tax relief so at least this way you aren't paying more tax.

I'll just stick to it then, thanks a lot.

[Shepherds Mush]

Unless your company pays a massive %, pensions are absolutely useless. Bung your money elsewhere.

[Jeems]

Sounds like your company have nest. It is a compulsory for all companies. I am putting in 3%. Next year your company have to put in 2% plus you get good tax relief. I put in 3 because I am well behind with my pensions. If I was you mate I would wait until next year. If you're under 40 next April and can afford to put away 4k. They will give you 1,000 as a bonus so a very good 25% interest. You can save this up until retirement or take it out early if you're a 1st time buyer. Nest is decent and better than nothing but the latter is the best deal, unless you have a decent company contribution. Thanks for ticket on my way ;)

You seem to be talking about the new Lifetime ISA, which has nothing to do with company pensions...and if you're not a firstime buyer and decide to withdraw early, they whack you with a massive penalty...its a good deal but certainly not for everyone...

[Hubble]

Bung some money on bitcoin, that's my tip.

[brightonr]

Unless your company pays a massive %, pensions are absolutely useless. Bung your money elsewhere.

Not something you would find published by the regulators or pension providers, but to a certain extent you're absolutely right.

Was a financial adviser for 18 years and very rarely sold pensions to clients as very few would have been remotely interested in contributing what they needed to.

I remember doing my first annuity quote and finding out that a 65 year old man with £100,000 in his fund would be likely to be able to purchase an income of just over £6,000 pa. Couldn't help but notice that the 16 years it would have taken just to get his fund back, would take him beyond the average life expectancy for a man. Not a great sales angle.

Now, I appreciate that things have changed somewhat and that the purchase of an annuity is no longer compulsory, but money doesn't just magically grow.

Back then, a 40 year old man with a personal pension would be able to pay 20% of his income into it. There was a good reason for that.

Just to concentrate the mind, at the age of 40, expecting to retire at 67, you only have 324 more pay packets to fund your prosperous old age.

[Ginger Ninja]

Seems pensions are the subject of the month lol.
Currently working for Tubelines but we're going back in house under the TFL umbrella. When I joined 13 years ago as an apprentice I signed up for the Tubelines Pension Scheme, paying in 3% per month with the employer paying in 8% roughly.
Since we're going back to TFL the RMT have just negotiated successfully for all Tubelines Pension Scheme members to sign up for the TFL pension, where we pay in 5% and TFL pay in 20%. Superb stuff.

I know that was all random, and nothing really to do with your pension MYU, but I found myself typing about it and thought I'd finish

[Stanley]

Bung some money on bitcoin, that's my tip.

Noticed its rates have been up and down like a yoyo the past few weeks. No expert so no idea why but just seems quite volatile. Overall trend is still up though.

[MYU]

Unless your company pays a massive %, pensions are absolutely useless. Bung your money elsewhere.

I'm paying in 6%, my company are paying in 1%, it's peanuts.

So shall I look into bitcoins?

[WeAreQPR12]

You seem to be talking about the new Lifetime ISA, which has nothing to do with company pensions...and if you're not a firstime buyer and decide to withdraw early, they whack you with a massive penalty...its a good deal but certainly not for everyone...

Yes exactly, I started off taking about nest which is what myu has and then I suggested doing a lifetime isa over the nest pension, surely that's pretty straight forward to understand and jeeps he only gets hit with tax if he takes it before 68 and as we're comparing it to a pension I would suggest he won't be doing that. Sorry to have confused you. Oh and you don't get hit as a first time buyer it's better to use the bonus for that reason. I have mine so I'll wait until I am 68 to take a v good reward

[WeAreQPR12]

I'm paying in 6%, my company are paying in 1%, it's peanuts.

So shall I look into bitcoins?

No stick to what I am saying, Hubble has plenty of money so can afford to take high risk/high reward his option is the wreckless one

[Hubble]

Noticed its rates have been up and down like a yoyo the past few weeks. No expert so no idea why but just seems quite volatile. Overall trend is still up though.

Not sure what you've been looking at Stan, but it's been around £600 a btc for weeks now. I check every few days. Lowest I've seen in last 5 weeks is about £580, highest about £605, which it is today.