Anything that your employer will contribute to, and you get tax relief on, is worth it.

Unless they invest it really badly but I would assume it's a fairly safe scheme they've gone for.

Optimistic as ever

Hi,

I am an independent financial adviser, and have done quite a bit of research into these new pension arrangements.

Initially companies and employees are only required to make contributions to the scheme of 1% of salary each, but this will increase over the next few years until contributions will be 3% employer and 4% employee, with another 1% tax relief. So in 2018 the amount of money going in will be quite substantial.

You could look at it as either taking or giving up a 3% salary increase; not many people would turn their noses up at that! Although these plans will primarily benefit younger people, there is still a strong case for employees in their 50s taking up the scheme, especially as after 6th April you will be able to take your pension however you like.

You will be able take all your fund as a lump sum, or space it over several years. You will be taxed at your highest marginal rate when you take it, so it may not be best to draw it all at once, but if the income you take is below the tax threshold (set to rise to £11,000 per annum soon) you won't necessarily pay any tax.

Royal London are quite a good company, and have a very easy to understand on-line system for delivering these pensions.

I hope that helps, and I don't want to go on too much here, but if you want to know more PM me

I used to be immortal

Are you still limited to age 52 to take a lump sum ? I ask as i have 5 years worth of contributions from 25 years back that has been sitting there slowly growing over time. Living in the USA now i am told i cannot transfer it here.
My only option is a lump sum and i am told i have to wait til im 52, well iw as told years back, wonder if it changed.
Anyone know ?

If you can afford your contribution to it without any problem, you'll get back much more than you put in.

By 2018 the minimum payment ratios will be 4:3:1

So if you paid £40 in, your employer pays £30 in and the government pay £10 in. Effectively doubling your mone, before it's invested.

Optimistic as ever

Hi,

You are able to transfer the pot out of your employers scheme and continue to pay in yourself while you are self-employed. The pot can then be moved into any future employers scheme, except the government sponsored scheme, known as NEST, which doesn't allow transfers in.

You can either approach Scottish Widows yourself, or get a financial adviser to do it on your behalf, though there will probably be a fee to pay to an adviser.

I used to be immortal

I concur with crystal balls..... I'm retired now and he's still trading.

If you need bespoike advice, you couldn't do better than talk to him as he's an Independent Financial Adviser.