Pension

Dante.El.Chunk · Post by **Dante.El.Chunk** » Thu Jun 20, 2019 11:55 pm

So I've just landed a relatively good job at Bt and am looking into pensions.

The BT one seems popular but as I have no idea I'm looking to you lot for advice.

I know how much I want to put away, just have no idea who is good and bad

Clarets4me · Post by **Clarets4me** » Fri Jun 21, 2019 12:03 am

Dante.El.Chunk wrote:So I've just landed a relatively good job at Bt and am looking into pensions.The BT one seems popular but as I have no idea I'm looking to you lot for advice.

I know how much I want to put away, just have no idea who is good and bad

Join it as soon as you are eligible, it's a no brainer !

COBBLE · Post by **COBBLE** » Fri Jun 21, 2019 12:56 am

Yea join. Nothing is certain forever but I cannot suggest anything better. Put away as much as you can within reason.

lesxdp · Post by **lesxdp** » Fri Jun 21, 2019 4:42 am

When you have joined you should look at paying in a little more each month. over time these additional voluntary contributions will make a big difference to your retirement income. you will not regret it.

Spike · Post by **Spike** » Fri Jun 21, 2019 6:08 am

You must join the scheme you get their contributions for free.

theroyaldyche · Post by **theroyaldyche** » Fri Jun 21, 2019 6:39 am

Join and put in as much as u can as soon as u can

Hipper · Post by **Hipper** » Fri Jun 21, 2019 8:51 am

I see BT have changed their pension set up as many companies have done. You will be entering the new scheme which will not be as good but is probably still better then a private pension.

Company schemes used to be about 'Defined Benefits' (DB). This means whatever you and the company put in and whatever their investment performance you will get a specific pension, usually based on your final salary. This sort of open ended pension commitment has cost companies (and local authorities) a lot of money as we live longer, therefore newer pension schemes are more about the contributions ('Defined Contributions'), which is not so advantageous but fairer.

I don't know how the new BT system works but the key is if BT themselves contribute then that is a plus for you and it would be better then a typical private pension (which only has your contribution).

As far as Additional Voluntary Contributions (AVCs) are concerned, you should seek independent advice to see if this is the best investment for you, not just for pensions but any investment.

This whole subject of your investments (in pensions and anything else) really requires a degree of planning and good advice.

I believe Walton on here is some sort of financial advisor who can offer better guidance but most would suggest a consultation with an Independent Financial Advisor:

https://www.telegraph.co.uk/pensions-re ... hould-pay/" onclick="window.open(this.href);return false;

turfytopper · Post by **turfytopper** » Fri Jun 21, 2019 10:41 am

Dante.El.Chunk wrote:So I've just landed a relatively good job at Bt and am looking into pensions.

The BT one seems popular but as I have no idea I'm looking to you lot for advice.

I know how much I want to put away, just have no idea who is good and bad

Put as much as you can afford into the BT pension scheme. I worked for Nat West for 7 years and stupidly put money into private schemes instead of additional money into Nat West...was a big mistake.

Bosscat · Post by **Bosscat** » Fri Jun 21, 2019 10:47 am

Dante.El.Chunk wrote:So I've just landed a relatively good job at Bt and am looking into pensions.

The BT one seems popular but as I have no idea I'm looking to you lot for advice.

I know how much I want to put away, just have no idea who is good and bad

Sign up to the BT pension as soon as you can... it would be foolish not to

Jel · Post by **Jel** » Fri Jun 21, 2019 10:52 am

What is the % BT contribute?
My company will match up to 10% which I think is good

fanzone · Post by **fanzone** » Fri Jun 21, 2019 11:04 am

IV just opted out of my pension. My opinion is your putting in for a very long time and not getting very much out, yes your boss pays in and it's "free money" but it's only good if you get back everything you put in. With the retirement age ever increasing it all sounds like a big con to me. I'm sure other people's opinions are different but that's mine.

Spend it and live for today as tomorrow never comes.

COBBLE · Post by **COBBLE** » Fri Jun 21, 2019 11:14 am

Fanzone has a fair point and only you know what your priorities are. But I'm 66, tomorrow did come and I'm glad I have reasonable provision. It might be possible to start your BT pension at a relatively early age or to transfer it to a scheme which allows drawdown from late 50s.

Sausage · Post by **Sausage** » Fri Jun 21, 2019 11:15 am

fanzone wrote:IV just opted out of my pension. My opinion is your putting in for a very long time and not getting very much out, yes your boss pays in and it's "free money" but it's only good if you get back everything you put in. With the retirement age ever increasing it all sounds like a big con to me. I'm sure other people's opinions are different but that's mine.

Spend it and live for today as tomorrow never comes.

Quite possibly the worst advice ever written on this forum. You can withdraw all the cash from your pension when you're 55 if you want to. To advise someone not to take advantage of employer's contributions, tax relief and the surety of a guaranteed income before state retirement age is the stuff of the lunatic asylum.

ElectroClaret · Post by **ElectroClaret** » Fri Jun 21, 2019 11:28 am

Sausage wrote:You can withdraw all the cash from your pension when you're 55 if you want to.

Yes you can, Sausage, but you have to be canny about it, or you'll be slapped with a whacking tax bill.

I'm in drawdown myself and make sure to keep within the
income tax allowance each year.

People should get advice about this, Pension Wise, the free advice service, is very helpful, I found.

Sausage · Post by **Sausage** » Fri Jun 21, 2019 11:34 am

ElectroClaret wrote:Yes you can, Sausage, but you have to be canny about it, or you'll be slapped with a whacking tax bill.

I'm in drawdown myself and make sure to keep within the
income tax allowance each year.

People should get advice about this, Pension Wise, the free advice service, is very helpful, I found.

Totally agree mate, but I was responding to the claim about pensions that "it's only good if you get back everything you put in".

theroyaldyche · Post by **theroyaldyche** » Fri Jun 21, 2019 11:44 am

Jel wrote:What is the % BT contribute?
My company will match up to 10% which I think is good

Mine match what we put in. I put in upwards of 300 per month

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 11:57 am

Don’t have time to answer now.
But will post later.
Quick question?
Is the BT scheme a defined benefits scheme or a defined contribution scheme????

simonclaret · Post by **simonclaret** » Fri Jun 21, 2019 12:06 pm

The defined benefits scheme (BT Pension Scheme) is now closed, it's now a defined contribution scheme (BT Retirement Saving Scheme). I believe for new joiners the company's contribution is usually 10% with employees contributing a minimum of 5%.

OP - there's a load of information on the BT Intranet about pensions, take a look.

fanzone · Post by **fanzone** » Fri Jun 21, 2019 3:11 pm

Sausage wrote:Totally agree mate, but I was responding to the claim about pensions that "it's only good if you get back everything you put in".

The minimum I would want is what IV put in, take it at 55 and I virtually give away in tax everything that has been paid in more than my contributions, take it at 70 if I get there will be great agreed but to save the amount for 36 years and get what my predictions were don't seem worth it when I can enjoy it now.

As I say everyone has there opinion on it

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 3:48 pm

fanzone wrote:IV just opted out of my pension. My opinion is your putting in for a very long time and not getting very much out, yes your boss pays in and it's "free money" but it's only good if you get back everything you put in. With the retirement age ever increasing it all sounds like a big con to me. I'm sure other people's opinions are different but that's mine.

Spend it and live for today as tomorrow never comes.

First I will reply to yourself.
Just for simple maths if you put in £10 of your wage you get tax relief so you actual only only put in £8 and the company normally adds £20. So for £8 you have £30 in you pension pot.

That’s free money, and I would argue you have made bad choice by opting out.

However, there are bad points, if your money has been put in a private company like Aviva or Legal and Gen, they like any company can go bust by bad investing and you can lose the lot, as has happen to a company in Blackburn in the last week.

On the Pension age that could come down as well, it’s one of my policy proposals to the Brexit party to reduce the Pension age for people who have a big enough pot.

The state pension will get worse, so by not saving for old age you have a pretty crap time of it.

COBBLE · Post by **COBBLE** » Fri Jun 21, 2019 3:48 pm

Question for Electrocat. Is the trick to take your annual drawdown requirement in monthly instalments?

TVC15 · Post by **TVC15** » Fri Jun 21, 2019 3:55 pm

fanzone wrote:The minimum I would want is what IV put in, take it at 55 and I virtually give away in tax everything that has been paid in more than my contributions, take it at 70 if I get there will be great agreed but to save the amount for 36 years and get what my predictions were don't seem worth it when I can enjoy it now.

As I say everyone has there opinion on it

I think you probably need to do some more research if that’s what you think happens when you are 55.
As for wanting out at least what you put in given your employer could be contributing twice as much as you are then it’s very likely you will get a lot more than you put in.
Take a look at what Lowbank said.

TVC15 · Post by **TVC15** » Fri Jun 21, 2019 4:05 pm

COBBLE wrote:Question for Electrocat. Is the trick to take your annual drawdown requirement in monthly instalments?

Doesn’t make a difference - your tax allowances are annual. Whether you take it monthly or in lump sums doesn’t matter. After taking your tax free lump sum any further drawdown is taxed in the same way as personal income - so you have your personal allowance, then 20% etc

Jel · Post by **Jel** » Fri Jun 21, 2019 4:13 pm

theroyaldyche wrote:Mine match what we put in. I put in upwards of 300 per month

With employer contribution I've pretty much put that in this week!
Lots of overtime though.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 4:14 pm

Dante.El.Chunk wrote:So I've just landed a relatively good job at Bt and am looking into pensions.

The BT one seems popular but as I have no idea I'm looking to you lot for advice.

I know how much I want to put away, just have no idea who is good and bad

Hi there I cannot seem to get much info on the new BT Scheme. However there are several pension schemes. My views will differ from others but my experience is from being on the Rolls Royce central pensions negotiation union committee where we received training from the Unite full time pension expert.

Final salary scheme, the BT new scheme says it’s a hybrid scheme, which I would need to read more on. However final salary schemes have advantages and disadvantages.
Advantages are that you know what your retirement budget is going to look like. It’s going to be between 55% and 75% of your final salary if you have worked there for 40 years. It normally has yearly increases backed by large funds to keep paying and whilst the Company still exists, that Company by law needs to adds more funds if required to keep paying the pensions.
Disadvantages, your locked into that company once you have a good few years in as your pension takes a massive hit if leave and become a deferred member. I have twice been offered a job at £8k a year more recently but but pension pot rises by 20k a year so it’s just not the right thing to leave.
Your very restricted to what your pension is. It’s a percentage of final salary based on number of years service and if you leave early you can have massive reductions. My old deferred Lucas pension has reductions of approx 7% per year you take it early, so if I want to take it at 60, I would get 67% of what I would get at 65. My RR one has no reduction down to 62 and then 5% per year after that .
Also if you dies after two years of retirement your spouse would get half of your pension for life but if she dies, all your life savings are now the company pensions money.
So a final salary means tied to the employer, working till nearly 65 and then a restrictive amount of money, however if the Company is around and safe you will be paid till you die.

Hope that makes sense

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 4:16 pm

Jel wrote:With employer contribution I've pretty much put that in this week!
Lots of overtime though.

What type of scheme are you in?

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 4:40 pm

Dante.El.Chunk wrote:So I've just landed a relatively good job at Bt and am looking into pensions.

The BT one seems popular but as I have no idea I'm looking to you lot for advice.

I know how much I want to put away, just have no idea who is good and bad

Defined contribution scheme.
These are run by private companies.
Again you tax relief and your company may contribute up to double what you do.
Advantages , you can move jobs when you like and continue to put in contribution or at least keep investing that money to get growth.
You may end up with 20 of these with different companies but you will have a pot of money which currently has some very flexible options. You can go to a pension provider and ask for an annuity, basically similar to final salary in that you agree to give them a large sum of money and they pay you money for life. I think at the moment you will have to pay around £30k for £1k of pension a year. More if want spouse pension after or other benefits.
You could do an annuity and a drawdown, a drawdown being where you give a company a sum of money and they guide you in investing it and you can take out what you want each year. You have around £13 of tax allowance which means you can receive £13k without paying tax and after that pay 20% up to around 50k then it’s 40%.

You can if you wish take your whole pot. Pay your tax and go Thailand and drink and Sh*g yourself to death.

With this type you can take more in early retirement where you can do more, I have a friend who finds all inclusive late deals for a month. He pays around £1200 for the two of them for a month and just goes abroad chillin.

Other advantage is if you pop your clogs after two years any money left is part of your estate and can be left to members of your family.

So very flexible for you

Disadvantages, no guarantees. Your investing and values can go up or down.
The private company could go bust and you lose all your money. See Equitable life who lost 80% of there customers money and the company in Blackburn who have lost all the money. So pensioners have lost all their pension.

Tall Paul · Post by **Tall Paul** » Fri Jun 21, 2019 4:46 pm

Jel wrote:With employer contribution I've pretty much put that in this week!
Lots of overtime though.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 4:55 pm

Dante.El.Chunk wrote:So I've just landed a relatively good job at Bt and am looking into pensions.

The BT one seems popular but as I have no idea I'm looking to you lot for advice.

I know how much I want to put away, just have no idea who is good and bad

Self invested pensions. SIPP’s.

Very similar to defined benefits but your in control of the investments.

Advantages, very flexible as defined contribution. When you reach retirement you can buy an annuity, do drawdown, draw it all and go drink yourself to death.
The controlling company could go bust, but your money is your money and will not be lost. Any money left on your death will be part of your estate.

Disadvantages, you are in full control and can lose all your money by bad investing.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 4:59 pm

any Pension where the company puts in money is a no brainer.

A final salary scheme will always give a transfer value so can move to a drawdown or SIPP when you retire. However you might have had a greater pot in a defined contribution scheme.

Hope that helps.

Any questions??

Jel · Post by **Jel** » Fri Jun 21, 2019 5:01 pm

Lowbankclaret wrote:What type of scheme are you in?

That is something I need to find out. I've only been here for a few months. All I do know is that it's through Aviva.

fanzone · Post by **fanzone** » Fri Jun 21, 2019 5:27 pm

I were putting 5%
Employer were doing 3%

The final figure weren't great.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 5:29 pm

Jel wrote:That is something I need to find out. I've only been here for a few months. All I do know is that it's through Aviva.

So that will be defined contribution.

You need to get log in details to see where your money is invested. I have an Aviva pension and it’s very restricted to the funds you can invest in.
Aviva are a good company but limited investment opportunities.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 5:33 pm

fanzone wrote:I were putting 5%
Employer were doing 3%

The final figure weren't great.

What alternative option are you in now??

You were getting 20% tax relief on your 5% and the 3% was free money.

The final figures I would have to see to give an opinion.

No Ney Never · Post by **No Ney Never** » Fri Jun 21, 2019 6:30 pm

Like most companies, ours froze the Defined Benefits scheme and introduced a Defined Contribution.
DB still increases by 4% annum. In the DC scheme employer contributes 9%, I can put in as much as I like.
Ours is managed by Aviva, I can leave it up to them to invest or I can select from hundreds of funds, but no more than ten funds at one time myself and state what % of my money goes into each.
I manage my fund online and can swap and change which fund(s) my pension is in on a monthly basis if I so wish.
Currently I'm 50% emerging markets, 25% high yield bonds and 25% with profits.
Unless there's a change in the law, when I retire, I'll be drawing down over a number of years. When I die, no way are they keeping the money I've worked all my life for. It belongs to me and will become part of my estate to be passed on. It's state sponsored theft that at least half your pot is kept by the pension company when you die, and they keep all of it when your partner also goes.
It's my money and I should be able to will it to the kids. How is it that we as a society accept the pension companies keeping for themselves, what belongs to us?
At least with a draw down, all my money is with me and not the pension company, they're not keeping what's mine. There's fixed interest rate bonds paying 3% monthly where your capital is not at risk, that are classed as a deposit and therefore protected by the FSCA up to 85k per institution. I'll put my pension pot into these no risk instruments, that way I get a monthly income while alive and the kids get it all when I'm gone. The pension company gets nowt.
I'm surprised that no one has yet challenged in court, the right for individuals to will their pension pot to their beneficiaries upon death.

Jel · Post by **Jel** » Fri Jun 21, 2019 6:32 pm

Lowbankclaret wrote:So that will be defined contribution.

You need to get log in details to see where your money is invested. I have an Aviva pension and it’s very restricted to the funds you can invest in.
Aviva are a good company but limited investment opportunities.

Thanks for the info. I also have a previous fund with Aviva, is it a good idea to combine the two?

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 6:36 pm

Jel wrote:Thanks for the info. I also have a previous fund with Aviva, is it a good idea to combine the two?

Devil is in the detail.
Risk is Aviva go bust leaving you with nothing.

If it was me I would move your old one to a SIPP and put it in an index tracker fund like the ftse 250 or S & p 500, if your fairly young.

Don’t have all your eggs in one basket.

Blackrod · Post by **Blackrod** » Fri Jun 21, 2019 6:39 pm

I always find it’s s good idea asking these type of questions on a football message board

Speak to someone who properly knows what they are talking about rather than message board ‘experts’.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 6:46 pm

Blackrod wrote:I always find it’s s good idea asking these type of questions on a football message board Speak to someone who properly knows what they are talking about rather than message board ‘experts’.

To be fair if that’s aimed at me.
I am not here to make money.

So called experts are there to make money from you, they will tell you what you want to hear, then lose all your money.

My experience comes from old age and training.
equitable life lost 80% of my pension, a company seen a very high quality company at the time.

If you want to dispute anything I have said , feel free to debate.

barba · Post by **barba** » Fri Jun 21, 2019 7:01 pm

Lowbankclaret wrote:If it was me I would move your old one to a SIPP and put it in an index tracker fund like the ftse 250 or S & p 500, if your fairly young.

Don’t have all your eggs in one basket.

You're recommendation of investing in one asset class in one country is all eggs in one basket

Lowbankclaret · Post by **Lowbankclaret** » Fri Jun 21, 2019 7:11 pm

My suggestion is to use index link trackers for people who have a long term investment. Ie young people.

History shows they have done about 7% and 9% year on year over the long term.

Managed funds can do better in the short term but you need to manage it actively and trackers out perform them long term taking costs into account.
I think I have put out there the risks of all types.

The S & P 500 has done approx 9% a year from the 1800’s on average. If I was 20 would I put my money in it. Yes

Low fees and over the long term it’s gunna outperform a managed fund.

barba · Post by **barba** » Fri Jun 21, 2019 7:24 pm

I have no issues with tracker funds but ignoring Europe, Asia, Emerging Markets and other asset classes seems strange.

No Ney Never · Post by **No Ney Never** » Fri Jun 21, 2019 8:22 pm

I can't speak for Lowbank, but to be fair, the majority of people are not very savvy when it comes to investments and researching what's required for a diversified portfolio. Most of the people where I work have no clue and are happy to pay their money into something managed on their behalf. The idea of a tracker, while maybe not as diversified as say a portfolio of property, funds, ETF's, fixed interest bonds and precious metals, etc. is about as much as 'the ordinary individual' can understand. I'm not saying they're not of a reasonable level of intelligence, it's just that they can't be arsed when it comes to these sorts of things, they'd rather someone else do it for them.

Clarets4me · Post by **Clarets4me** » Fri Jun 21, 2019 9:57 pm

Lowbankclaret wrote:First I will reply to yourself.
Just for simple maths if you put in £10 of your wage you get tax relief so you actual only only put in £8 and the company normally adds £20. So for £8 you have £30 in you pension pot. That’s free money, and I would argue you have made bad choice by opting out.

At present, you'll have a job obtaining a 2% pa Interest rate on your savings ....

If you have a scheme as " Lowbankclaret " describes as above, where the employers contribute double your contribution, it means your return, with Tax relief, is 380% , overnight for your contribution. Under present rules, there is considerably more flexibility with the new arrangements, which will allow for a phased retirement, or reducing your working week.

If you think you're too young for a Pension, listen to your elders, the years go by real quick, kids !!

TVC15 · Post by **TVC15** » Fri Jun 21, 2019 10:34 pm

Blackrod wrote:I always find it’s s good idea asking these type of questions on a football message board Speak to someone who properly knows what they are talking about rather than message board ‘experts’.

You do realise that you can be a football fan and be good at other stuff to ?!!!
I’ve got more than 30 years experience in the financial industry so if someone asks a question where I know the answer i’m happy to help.
If it becomes a question of where to invest etc then I do agree with you that they should go and see an IFA.

Walton · Post by **Walton** » Fri Jun 21, 2019 11:14 pm

As someone who's worked in pensions and investment for around 15 years, this is definitely an eye opening thread.

My tip for almost everyone is get independent financial advice, but do not touch with a bargepole companies like St James Place or Hargreaves Lansdown unless you like handing over thousands you didn't need to when you could get better and significantly cheaper advice elsewhere.

Paul Waine · Post by **Paul Waine** » Sat Jun 22, 2019 12:38 am

Lowbankclaret wrote:To be fair if that’s aimed at me.
I am not here to make money.

So called experts are there to make money from you, they will tell you what you want to hear, then lose all your money.

My experience comes from old age and training.
equitable life lost 80% of my pension, a company seen a very high quality company at the time.

If you want to dispute anything I have said , feel free to debate.

Hi Lowbank, I do worry about some of the things you've said.... there's confusion and some mixed-up stuff.

Equitable Life, yes, I had a pension with them - the fund was chosen by my then employer - the staff had no choice. Like you, it was Equitable's "with profits" funds - but, Equitable had "promised" earlier investors in this fund annuities based on very high interest rates - and then interest rates fell. The early investors went to court and the court decided in their favour. So, the people who had these "over-generous" promises were paid very generous pensions - and the ones who weren't able to get money out suffered the shortfall - and, as you say, it was a very high percentage.

Any savings/investing scheme where what you get out is shared with others is a bad thing. It can be ok if you are one of the "first out," but if you take out too big a share, then those who come later end up with a shortfall. That's what happened with Equitable.... (It's how a lot of schemes in Netherlands operate. There's been talk of some UK companies adopting this approach, but it requires a change in the law, I understand).

This is also what has happened with most defined benefit schemes. The earlier retirees get all the pension that has been promised, but, as people live longer - which we should all agree is a good thing - there is a risk that the pension fund doesn't have enough money to meet all the later pension claims. Then it is complicated in that if the sponsoring employer is struggling financially they may also struggle to put enough money into the pension fund - then if the pension fund is transferred to the Pension Protection Fund (have I got the name right at this time of night?) the future retirees will only receive 90% (subject to a cap) of their expected pension.

Your bit about pension funds keeping the money when you die - that's not strictly correct. If you have a defined benefit/final salary scheme, the promise is to pay you a pension until you and, frequently, but not always, your partner are deceased - and maybe something for dependants until they reach a certain age. There's no "fund" that is yours, you just have the promise of receiving the pension.

The situation is similar if you were in a defined contribution or personal pension and buy an annuity on retirement. When you buy the annuity you pay over your pension fund to the insurance company and they agree to pay out the pension for the rest of your life. If you die "early" then whatever remains of the fund you paid to them is theirs. If you live a long time, the insurance firm will have paid out for a much longer period and it will have, individually, have cost them more than the fund you paid to them....

In 2015 the rules changed. We no longer have to buy an annuity. We can hold onto our pension fund, withdraw as much as we want, or as little... If we die before we are 75 then the remaining pension fund can transfer to your designated beneficiaries (I'm not certain if this is limited to family or we have freedom to choose) and it doesn't count as part of your estate for inheritance tax. If you die after 75, then it transfers to beneficiaries and they pay tax on it at their marginal rate of income tax.

For some people, it's this new age 75 rule that leads to them wanting to transfer out of a defined benefit scheme and, instead have their own pension fund with these inheritance tax advantages. But, it's complicated - and, no one should read what I've just typed and take it as advice to be followed.

I'm not a financial advisor. I qualified as an accountant 40 years ago - but, I've never worked in the area of personal finance or investing. I'm now 65 and I'm still trying to work out what is the best for me to do with my pensions.

I'm guessing fanzone was signed up to the new pension scheme all employers have to offer their staff (I forget whether there are still some small employers who don't have to do this...). The payment limits are low and won't add up to much of a pension. But, I'd expect the contribution rates to continue to grow over time. I'd doubt you'd get much of a pension unless you have saved 20% (including employer's contribution and tax relief) of your earnings over many years before retirement.

Hipper · Post by **Hipper** » Sat Jun 22, 2019 8:05 am

Another point about a company pension scheme is its transferability.

I was lucky in that my local authority and company schemes I was involved in in various jobs were transferable AND with little loss of value. It's worth checking the BT pension system to look at this.

My impression is that pensions, especially now there is more flexibility with them, should be looked at as part of your whole investment strategy - including mortgages, life insurance etc. where appropriate. That's why, as Walton says, you should consult an Independent Financial Advisor. Find a local one that specialises in the financial areas you are interested in. Visit two or three of them to start with and effectively interview them yourself as well as listen to what they have to say. If he's any good he will advise you throughout your life with all the various financial occurrences that come up.

Dante.El.Chunk · Post by **Dante.El.Chunk** » Sat Jun 22, 2019 4:20 pm

Thanks for all your input, sorry I haven't replied to any questions, I haven't started there yet so I don't know the details. I'm 32 and as some may remember have been a "career volunteer" so to speak.

I want to start hammering my pension because I want to retire early and go back to volunteering as soon as possible.

The advice about not putting anything aside and live for today isn't great, I've "lived for today" all my twenties and all I have is residual debt, no savings and no home (owned that is).

Usually it is something like having kids that kick starts people into being forward thinking but for me it is because I am now one year younger than my mother when she died.

From what I am reading I am best off going to make friends with the bank and get some advice.

Hipper · Post by **Hipper** » Sat Jun 22, 2019 5:18 pm

Not the bank. They will just tout their own products.

It really is best to use an Independent Financial Advisor:

https://www.moneyadviceservice.org.uk/e ... al-adviser" onclick="window.open(this.href);return false;

IFAs will still not know all of the market possibilities because there is such a huge range but a good one will use a good range of reliable products.