pension plan?

wakkaday · 23-09-2009, 07:52

is it worth joining a pension plan? or better putting my money in savings account

thanks

**Maggy J** · 23-09-2009, 09:02

Quote:

Originally Posted by wakkaday

is it worth joining a pension plan? or better putting my money in savings account

thanks

Getting some advice is a good start..You certainly need to be considering about income in your old age..Frankly after the last 18 months and the way Brown raided pension funds that's left a huge deficit in pensions for many organisation's employees and the way some employers have abandoned pension schemes they originally set up,leaving employees in a very hard place,I'm not sure that there is anyway to guarantee a good return on a pension plan.

If you are young saving might be a good start but then you may have to consider putting it somewhere where you can't just spend it when you have an emergency.At the moment finding an account or system that gives you a better interest rate is a problem.

superbiatch · 23-09-2009, 09:08

I decided to opt out of my pension plan and buy property, hopefully the sale of it will provide me with a tidy sum when I retire.

wakkaday · 23-09-2009, 09:43

if i opt out, will any savings in my pension plan be returned or do i have to wait till im 65

superbiatch · 23-09-2009, 09:45

I know when i looked into this, I was told I couldn't get my contributions returned as I had been paying into my plan for over 2 years. I'm not sure if this is standard, or just in my particular case.

DaiNasty · 23-09-2009, 11:10

Quote:

Originally Posted by superbiatch

I decided to opt out of my pension plan and buy property, hopefully the sale of it will provide me with a tidy sum when I retire.

From where I am now at 60 I wish I'd done the same. I've sunk a great deal of money into a private pension over the years which is not offering a particularly brilliant return. My property investments have done far better.

If I had my time over again I'd buy bricks and mortar. There are maintenance costs to factor in of course but at least these are under your control. Pension companies can basically take what they please in charges and you just have to grin and bear it.

Still, as has been said, professional advice is probably the best place to start.

wakkaday · 23-09-2009, 11:16

i see, i believe the pension plan i am in - basically pays the same amount i put in each month...

maybe property is the best option....

LondonRoad · 23-09-2009, 11:32

Property is an option if you have a lump sum to invest but if you are looking to make regular contributions then a pension plan is better than a savings account.

If your contribution is being matched pound for pound then it's a no brainer. Also you don't pay tax on pension contributions whereas any money you put into a savings account you have already paid tax on.

The return of contibutions varies and will depend on the small print of the plan itself.

Flyboy · 24-09-2009, 15:41

One of the things to establish is what type of plan it is. If it is employer provided occupational pension scheme, or is it a Group Personal Pension plan. If it is the former, it is important to establish whether it is defined contribution (money purchase ) or defined benefit (final salary). If it is a GPP, it is important to know whether it is a stakeholder pension, or an ordinary personal pension plan.

Aragorn · 24-09-2009, 16:00

Quote:

Originally Posted by wakkaday

is it worth joining a pension plan? or better putting my money in savings account

thanks

There are too many unknowns to get a stright answer on here.
Eg, how old are you now, what is your top tax rate, does the company contribute to the pension, and so on.
In general, a young person in a scheme with company contributions and paying higher rate tax would normally be better off than simple savings.
Have a look at the DirectGov pension pages.