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Do you have a pension?

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Home, Law & Money
I was talking to my friend the other day and when I said I don't have a pension she seemed quite surprised. My company does have a pension scheme ( final salary scheme - but I haven't signed up to it, because at the moment I am struggling financially and trying to slowly pay off debts so it just seems silly to give up another portion of my monthly wages.

I'm 24, is it ok to not have a pension?

Also my company has just announced that the final salary scheme will be closed to everyone from June and they are offering £250 towards the cost of consulting an Independent Financial Advisor.

confused!

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    If you are offered a final salary scheme in a firm which you intend to work for in the long term then you should really join it, they are like gold dust. Obviously get independent financial advice, though.

    I don't have a pension, but I intend to get one when I start my new job. Martin Lewis reckons you should halve your age at which you open the pension and that's the percentage of your salary you should be putting away for your pension- so you should be paying 12% of your salary.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Kermit wrote: »
    If you are offered a final salary scheme in a firm which you intend to work for in the long term then you should really join it, they are like gold dust. Obviously get independent financial advice, though.

    I don't have a pension, but I intend to get one when I start my new job. Martin Lewis reckons you should halve your age at which you open the pension and that's the percentage of your salary you should be putting away for your pension- so you should be paying 12% of your salary.

    12 per cent of my salary? thats just not viable for me at the moment.

    i'm not planning on staying at this company •crossing fingers anyway• and they are getting rid of the final salary scheme..I never understood it anyway. A pensions woman came to speak to us during training and completely pressured and hurried everyone into signing up, but I said no.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Seriously - final salary schemes are definitely worth joining, like Kermit said - they are like gold dust, everywhere's phasing them out.

    It doesn't have to mean that you pay the 12% - most pension schemes now are contribution ones. In my pension, I pay 3% of my salary, the company tops it up with 6% and we all get tax rebates - so it works out quite well, and i'm not far off 11%, which is what i should be putting in.

    The longer you leave it, the less money you'll have, and putting money in at this age will be worth so much more when you come to retire than it will if you start putting it in in 10 years.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    katchika wrote: »
    12 per cent of my salary? thats just not viable for me at the moment.

    Thing with pensions is that it's a case of pay now or pay later. Failing something horrendous happening you will get older and retire.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    not yet, I'm still a student, and will be for another few years if all goes to plan :chin:
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Yupp. My dad left me money in his Will so put some of it into a pension.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    i dont have one.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I had an NHS pension that I paid in to for only three years that has been frozen (apparently) and now I pay in to a Civil Service pension.

    My mum retired aged 40 for medical reasons (from the Civil Service also) on a final salary pension. She gets more pension each month than I do salary, and I still work for them!
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I have two personal pensions, and when i finally get a career i'll definitely be joining a company pension. I'm quite proud of myself seeing as i'm only 20.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I dont have a pension, but I do have quite a lot of savings for someone my age.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I don't have a pension, I'm not earning at the moment, and the majority of my savings are going towards our first place.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I started paying into it when I was 20 and that was 4 years ago, paying £160 a month. I've never really noticed it gone and i've been able to budget for not having it.
    I think you'd probably be able to as well. I've always found that if i've got money sitting around in my current account it gets spent on bugger all. If it gets funnelled into an ISA or my pension I can't spend it but still manage to get by.

    I'd advise getting a pension, because they won't be around for ever, or if they are the terms will be rubbish.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I'm thinking about one, when I first thought about it I was about 16 and too young (I thought I had years and years left) now I'm nearer 20 (I'm not far off 19) If I had the right info I would start paying soon.

    I also intend to teach so am relying on getting a pension from that.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Yup.. I started paying into a company scheme when I was 20, then transferred it when I moved jobs to my new personal pension scheme.

    I pay in 4% and my employer pays 6.3% - plus tax breaks, that's about 11% and I've just turned 23.
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