How would I go about getting a pension in England? WHERE do I start? PLEASE answer sensibly (I'm being serious

Question

I'm 19 and currently unemployed, but I've heard so much about it being a good idea to start one as soon as poss.

PLEASE answer sensibly, this is a serious question

What happens if I leave that job, though (for whatever reason)?
Would I still be able to keep the pension from my previous job or would I hjave to hand it back?

Answer 1

It's easier and cheaper to set up another Bank (or savings) Account, and then each month you get paid set up a direct debit transferring a certain amount into the other account - remember to destroy the Cash Card that comes with the 2nd Account so you won't be tempted to spend what you save. This is what I have done.

Do NOT join the one your employer recommends, as when you leave that job HALF the money you pay into the scheme gets swollowed up by Administration Charges when you 'cash' in the scheme or gets totally frozen up so you can NOT access it until you reach retirement age (and this money does NOT earn any interest).

I doubt very much they will be a state pension when and if you get to retire, as the government keeps putting up the retirement age.

Answer 2

There are 3 types of pension.
One is the state (or old aged pension) which everyone is entitled to, paid for by National Insurance contributions. The amount you get on this though is quite small, and has dwindled compared to inflation, so it is advisable to take out an additional pension.

This could be either:

A company pension scheme - some companies offer their own pension schemes which you can choose to join or not. These are based on deductions made from your pay. Final salary pension schemes are best, as they are based on what your final salary is when you retire. There aren't many of these about now, so if you are offered one, take it! the other type of company pension scheme is based on the contributions (pay deductions) that are made into it.

The other kind, should you deceide not to go with, or are not offered a company pension scheme, is a private pension scheme, whereby you take out a pension scheme yourself with a penion/financial services company. These tend to contributions-based as well.

With all pension schemes the earlier you pay in the better, so yes, you are very wise to start planning now!

Answer 3

You wanna SIPS which is a pension scheme you pay into yourself. This gives you loads of scope as to what to invest your money in [i.e. high/low risk and return]. With the compound effect you get a better return the earlier you start [economic cycle apart] so it's great that you are considering this so early. The great thing is that you also get tax back on your contribution up to a certain level [I think at your age the maximum you can contribute to a scheme is 15% of income] so it's like the government adds 22% [or 40% if you are higher tax payer] on top.

I.e. contribute £50 a month and your actual contribution will be c£60 - cool huh?

Depending on your attitude to risk I recommend investment companies via fund supermarkets -these give you access to great returns from funds that can make +25% per year without having to pay initial charges [usually c5% of investment] and you can change your holdings at very short notice.

Try Hargreaves landsdown - they'll send you free literature. Good luck and happy retirement

Answer 4

As you're no longer working yet i think of the guy telling you to take out an ISA is right. An ISA is a guy or woman reductions account and you will no longer pay any capital constructive components tax on any income you're making or pastime you earn. you may desire to pay as much as £3,six hundred in line with twelve months right into a pension (or as much as a hundred% of your income in case you're working) yet you does no longer be waiting to get right of entry to that money till you retire, so on your circumstances it would desire to no longer be the suitable element so you might do. in case you save into an ISA you may take the money out in case you particularly need it yet or you may continually pay it right into a pension as a lump sum in some unspecified time contained sooner or later contained sooner or later. A pension is relatively a sturdy deal through fact for each £seventy 8 you pay contained in the government (taxman) good it up by using a bigger £22, so £a hundred might have long gone into your pension, yet on your present day circumstances i think of accessability is the difficulty.

Answer 5

Hi there. You have 2 types of pension - state & private. With regard to the state - when you are working, you'll pay national insurance and this contributes to your state pension.
With a private pension: you have to contribute from your own resources. It can be as much or as little as you want it to be. Have a look in the yellow pages for a Independent Financial Advisor.
Good luck

Answer 6

All employers will offer you a pension, but this can take a lot of different forms. At 19 you don't have to worry too much yet.

If you are really concerned, as at your bank to speak to a pensions advisor, they can explain everything to you. Or if you can afford it, meet with an independent financial advisor who is there to help.

Answer 7

If the previous employer provide any pension you can take it.Otherwise you can join any contributory pension fund.Some banks offer savings linked pension.Besides there are many pension funds available.State sponsored Unemployment Allowance /wages are common in many countries.That is till you get another job only.

Answer 8

This is an excellent site for all things financial...here is the link to the advice concerning pensions...
http://www.fool.co.uk/school/2005/sch051202.htm
The site is called Motley Fool...I know it says Fool but it's not a wind up...and you are NEVER too young to start thinking about a pension...

Answer 9

Get a job with a pension scheme.

Answer 10

See if this one suits you and listen to the free training call
I hope i can help you. This is a home business directed with a Business network It is FREE to join but to make money it is low cost to join. just check it out yourself http://directmatches.com/clpdirectster