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Should I be thinking about starting a pension now?

I've been wondering whether to start a pension or not. I'm 23 at the moment and in full time employment as a computer programmer. My current salary is £30k + bonuses. The pension offered by my company is a stake holder that they brought in about a year ago. As far as I understand it, I pay in 3% and the company pays in 3%. This doesn't sound that good because my mum who is a secretary pays 3% and the company pays 12% and one of my mates gets the whole lot paid by the company.

So is it about time I thought about starting a pension or would I be better waiting a few years until I am earning enough to make a difference? Are there any other people my age with pensions in here. I always feel like I am a bit to young to be worrying about this sort of thing. I was thinking I would be ok to wait until 25.

Reply to
Welly Man
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It's irrelevant how much your mum or anybody else gets, there are different types of pension schemes and different ways employers can fund them or not.

The point is thet you're getting 3% paid in by your employer so that's 900 per year (based on your 30k basic) for 2 years, or 1,800 that will not go in if you wait until you're 25.

You can probably pay in more than 3% yourself if you think it's not enough (check with the scheme) and if not, as it's a stakeholder you could take out another independant one to top up your contributions. When you are 25 and your earning are higher then increse your contributions again.

HTH Arfie

Reply to
Arfie

And your job could be in India in a few years time!

Regards, Zen

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- Personal finance problems solved

Reply to
Zen

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