Advise on pensions and what to pay.

Post by **postiewhite** » 15 Sep 2016, 18:25

Ive been with RM for 3yrs now and at 43yrs old Ive only been paying into a pension for 3yrs. I was thinking of increasing my payments of £15 per week to £100, after working out my outgoings I can afford to pay that and want to try and think of the future now. We use Zurich right? Is this a wise move or is it better to pay only a bit more each week so that RM can add their maximum contributions (not sure what that is) and take out another pension scheme and pay the rest into that?

Robertdeniro · Post by **Robertdeniro** » 15 Sep 2016, 18:40

Tricky one...I transferred 60k from a previous pension, pay in 40 odd a week plus RM 30 odd so 300ish a month and my pension predictions were about 150 a week in 20+ years when I'm 65 so not great!

bluealbert · Post by **bluealbert** » 15 Sep 2016, 21:01

Robertdeniro wrote:Tricky one...I transferred 60k from a previous pension, pay in 40 odd a week plus RM 30 odd so 300ish a month and my pension predictions were about 150 a week in 20+ years when I'm 65 so not great!

That's terrible enjoy today I say

yellowbelly · Post by **yellowbelly** » 15 Sep 2016, 21:44

postiewhite wrote:Ive been with RM for 3yrs now and at 43yrs old Ive only been paying into a pension for 3yrs. I was thinking of increasing my payments of £15 per week to £100, after working out my outgoings I can afford to pay that and want to try and think of the future now. We use Zurich right? Is this a wise move or is it better to pay only a bit more each week so that RM can add their maximum contributions (not sure what that is) and take out another pension scheme and pay the rest into that?

Assuming you're in the DC (Defined Contribution) scheme, I would first make sure that you and RM are paying the highest percentage rate of contributions
of your pensionable pay ie which is 6% you and 9% RM before contributing additional money as AVC's which are locked into the pension until you retire.

steveoooo1 · Post by **steveoooo1** » 15 Sep 2016, 21:46

Robertdeniro wrote:Tricky one...I transferred 60k from a previous pension, pay in 40 odd a week plus RM 30 odd so 300ish a month and my pension predictions were about 150 a week in 20+ years when I'm 65 so not great!

Surely You can take a lump sum.

datasaint · Post by **datasaint** » 16 Sep 2016, 08:44

Robertdeniro wrote:Tricky one...I transferred 60k from a previous pension, pay in 40 odd a week plus RM 30 odd so 300ish a month and my pension predictions were about 150 a week in 20+ years when I'm 65 so not great!

Plus your state pension you'd be on >300/week.

yellowbelly · Post by **yellowbelly** » 16 Sep 2016, 20:09

yellowbelly wrote:
postiewhite wrote:Ive been with RM for 3yrs now and at 43yrs old Ive only been paying into a pension for 3yrs. I was thinking of increasing my payments of £15 per week to £100, after working out my outgoings I can afford to pay that and want to try and think of the future now. We use Zurich right? Is this a wise move or is it better to pay only a bit more each week so that RM can add their maximum contributions (not sure what that is) and take out another pension scheme and pay the rest into that?
Assuming you're in the DC (Defined Contribution) scheme, I would first make sure that you and RM are paying the highest percentage rate of contributions
of your pensionable pay ie which is 6% you and 9% RM before contributing additional money as AVC's which are locked into the pension until you retire.

Sorry, also meant to say pay off any debts (if you have any) that are costing you interest payments.