I am in emplyed work but currently do not contibute to my employers pension scheme. I have been told that beacuase my employer offers one i can not invest have a pension anywhere else. Is this true? Are there any other options open to me, in terms of contributing to a pension, that DOESNT include having to contribute to my employers pensions scheme??
2007-02-03 04:02:10 · 5 answers · asked by Laure 2 in Business & Finance ➔ Personal Finance
you've been given the wrong info - you can invest in a pension elsewhere as long as your own total contributions don't exceed a certain percentage of your earnings. I would recommend a stakeholder pension as the investment charges are low. I would also suggest you see an independent financial adviser to discuss the options available to you
2007-02-03 04:11:49 · answer #1 · answered by G*I*M*P 5 · 1⤊ 0⤋
There are lots of options for you now, since the changes made in April 2006.
You should check out your company pension scheme as they may be contributing to this and therefore you may be better off taking this up then contributing to your own individual pension.
In regards to not contributing to any other pension, who ever told you this is wrong. Since Aday then changes have meant that you may contribute up to a maximum of £215k a year (2006 - will be going up) in to a pension (and this could be multiple ones running at the same time) without any tax implications. Your overall 'Life Time Allowance' (LTA) is currently £1.5m again this will increase annually), which is the maximum you are allowed in pension fund value (there is a special calculation used if your benefits are all DB rather than DC) during your lifetime, without tax implications.
The links provided already are good such as the advisory service etc. However I would also say you should look at the pension calculators on the Norwich Union, Clerical Medical and Scottish Equitable sites, which can help you decide how much you should be contributing to a pension.
2007-02-06 07:32:28 · answer #2 · answered by curly_krill 2 · 0⤊ 0⤋
Generally, your employer's scheme will be a good idea because they'll contribute to it as well. In effect, it's like having a pay rise. You can also take out your own pension privately.
2007-02-03 12:56:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I assume you are in UK.
You can have as many Pensions as you like so long as you do not contribute more that your entire annual take home pay (it's also capped at about £120k) per yr. & there is a 'lifetime allowance' (about £1.5m as I recall.. )
A 'stakeholder' is a good choice (low charges)... I suggest you stick to one of the major Banks ...
2007-02-03 12:23:00 · answer #4 · answered by Steve B 7 · 0⤊ 0⤋
listen to curley_krill - she speaks the truth!
2007-02-07 05:49:37 · answer #5 · answered by Colin S 2 · 0⤊ 0⤋