Hi all, I just have a free questions about a possible private pension and whether it's worth it. I've asked a few questions that are not relevant to me but either way I haven't found answer anywhere so hopefully it may help others
1) if I set up a private pension and pay monthly, and all of a sudden I can't afford to pay anymore for a while/at all, will I loose all the money I paid in?
2) does it affect benefits I may have now like help with rent, council tax, working tax credits?
3) how much would I be looking at to have a some what comfortable future if I want to retire at say 55. I'm 28 now.
4) what about tax? Do u get taxed on all your deposits is it there a limit?
Because there are so many variables in your question, it's impossible to answer. In any case, as the FE has already implied, you can only receive advice on pensions from a qualified advisor and he/she would have to do an in depth review of your circumstances, income, expectations and attitude to risk.
I will however give you a couple of things to think about; if you are 28 now, and thinking of retiring in 27 years time, how much do you think you'll need to live on, keeping in mind inflation? Keep in mind, according to government statistics, average wages have risen about 61% over the past 18 years. If you have or are buying your own home, you'll have less outlay than if you rent throughout your life. Why? Because a mortgage will (presumably) be paid off, whereas rent will almost certainly increase over the years.
Only two elements of a very complex picture. And that's why you need top notch professional advice.
The OP needs independent advice from an IFA (Independent Financial Adviser). I say independent because banks, insurance companies and other bodies tend to offer only their own products. An IFA will make available ALL sources of pensions and other such schemes.
So you are just 28 years old and already you are worrying about your pension. Do what I do and live for today. Anything you get as a private pension will count against you regarding means tested state benefits.
I totally disagree with the last post. If you do nothing then you will get the state benefits . Even the maximum OAP plus extras is just enough, whereas a good company or private scheme started at 28 (I started at 21) could give you a pension worth 5 - 10 times the size of a state one.