i have been offered a pension plan through work that if i put 3% in the work will to and you get tax releif it with a group called aegon i dont understand pensions but my boyfriend thinks it's doggy as i might not get my money, does anyone else have any advice on this?
2007-02-16 03:31:38 · 7 answers · asked by suzy 3 in Business & Finance ➔ Taxes ➔ United Kingdom
Assuming you can afford to pay 3% of your salary you would be very silly not to take this up. You will not lose your money since Aegon is one of the largest insurance companies in the world. Since your employer is also paying 3% into the plan you should consider that you are saving and effectively doubling your savings for nothing. I assume you are of an age that, if you can maintain paying into the plan, it will provide you with a very good pension when you retire. I realise this may seem like an age away but the day will come when you have no salary and just a very small state pension.
2007-02-16 08:03:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Pensions have had lots of bad publicity but Aegon is a huge global savings, pensions and insurance company and the regulation surrounding pensions provision is now very tight. This is effectively a 3% pay rise for you - actually a bit more because of the tax benefit. However you may not be able to afford your own 3% contributions so it depends slightly on your own circumstances.
2007-02-16 03:37:01 · answer #2 · answered by pdgr2000 1 · 0⤊ 0⤋
Do it! You want a pension plan.. I worked at Target for a long time and they automatically gave me a pension. After I quit, i had the option of getting $25/month after the age of 65, or taking the amount in full. I got a check for $1400 instead... It was beautiful. Now this is different than 401K. That is where you can take a percentage of your paychecks to invest. I would suggest that you do this too! It adds up quick.. and it's basically like getting free money! I have about $5000 dollars saved, and i only put in 5% of my paychecks.
2007-02-16 04:06:01 · answer #3 · answered by E 5 · 0⤊ 0⤋
Better a pension than nothing when you retire. However, with the current record of pension funds collapsing with the employer, it might be an idea for you to get guidance from an independent financial advisor, or the Citizens Advice Bureau.
You can of course start your own personal pension with a choice of many Banks and Building Societies. Good Luck!
2007-02-16 03:44:46 · answer #4 · answered by More or less Cosmic 4 · 0⤊ 0⤋
After watching a TV program on pensions I would not trust any of them.I have opened up a ISA there tax free I have choosen a 15 year one,once its up I wiil put the money into a high interest account.Also have endowment policy we changed over to a repayment morgage due to the short fall.
2007-02-16 03:37:55 · answer #5 · answered by Ollie 7 · 0⤊ 0⤋
Usually the way it works, is you put in your money, the company puts in it's money, and if you quit your job, you get your money back but no growth (interest)
In some countries, this system is similar but people do not get their money back, it stays in the fund for your retirement, and your next job also does the same contribution scheme into the same plan for your retirement only, or payment to your estate if you die first.
2007-02-16 03:38:13 · answer #6 · answered by bob shark 7 · 0⤊ 0⤋
I think that you should accept this if you can afford to pay 3% of your salary especially if you are considering a long term career with your current employer.
2007-02-16 10:25:36 · answer #7 · answered by ANDREW H 4 · 0⤊ 0⤋