Company Pension

  Mary_S 20:58 16 Mar 2011

Hi Guys,

I'm looking into joining my company pension scheme. I don't know much about these things so I'm getting tips from

click here

and will review the documents provided to me.

Can anyone offer me some advice?
Anything in particular I should make sure off which is not usually discussed clearly in documents?
The scheme is provided by standard life.

Thanks in advance

  oresome 21:14 16 Mar 2011

Here are some basic questions to consider.

Is it defined contribution or defined benefit pension scheme?

If it is defined benefit, is it final salary or average earnings based?

How much does the company contribute?

How much do you contribute?

What are the management charges for administering the scheme and who pays them?

Where is the money invested?

Has the insurance company a good track record of producing returns?

If it's a defined benefit final salary scheme, snap their hand off!

  Simsy 21:57 16 Mar 2011

joining a company pension scheme is likely to be a good deal, assuming the company will be making contributions.

However, that's very much a rule of thumb.

There are some changes coming into effect next month... how much you may invest without penalty is changing, (reducing significantly)... the amount of cash you may take from the fund at retirement is increasing, (subject to being in receipt of a minimum pension).

You really need to get some expert advice on this, but among the things to consider are;

Your age now
Your intended/expected retirement age
Your current salary
Your current savings
Your financial dependents

Look for an independent financial advisor... and consider one that takes a fee, rather than commission.

Good luck,



  spuds 22:36 16 Mar 2011

Consider also if you were to leave the company, and whether the company can maintain its involvement?.

Also any documentation will provide a 'forecast', which may well fall short of your final expectations.

Can you increase your contributions or are they fixed?.

What payments will be provided for 'next of kin or partners', and for how long?.

  morddwyd 08:22 17 Mar 2011

Leave the pension aside for the moment, look at the death benefits.

For many it's the cheapest and best life insurance there is.

  HondaMan 10:57 18 Mar 2011

You need an IFA (Independant Financial Adviser). Try click here

  Forum Editor 16:39 18 Mar 2011

Nobody here is qualified to offer pensions advice, other than in very general terms. Proper advice must to some extent be based on your personal circumstances, and for that reason I endorse the advice offered by HondaMan - you need to speak to and Independent Financial Adviser.

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