[Closed] Pensions......Yawn...... Advise?

Spread your risk and start a new one. I had this choice back in '92 when I began a new job, and elected to continue to pay into my existing scheme. Did so for a few years. Alas it was Equitable Life. Needless to say some years later having lost about £30k I wished I'd gone with a second company.
These days I spread things thinly. Pain in the arse to administer but only so many businesses can go to the wall. (We hope).

as mc
I'd also look at SIPP (Hargreaves and Lansdown as an example) depending on how flexi your employer is. (ie have a single pension % allocated across a variety of funds - and can fund switch - to be fair LOTS of people offer this)

Read the charges bit carefully, on all pensions.

Cheers, that makes sence. I'll get him to carry on with this one whilst I check out some others...

Ta

I'd take the company's contribution and the tax perk, but bear in mind private pensions provide shockinly poor returns. Don't rely on this, or any other little pension scheme other employers provide you throughout your career!

Your fund will not be secure, or under your control and when you finally take your pension the annuity provider can reduce your pension if the markets take a bad turn. Don't expect them to jack it back up proportionally when the market makes a recovery though.

When you die, your spouse might get half your annual pension, but not all annuities make this provision. If you have children, they won't see a penny of your pension investment.

Conversely, putting money away in accessible/liquid investments means the money is in your hands, you decide what happens with it. Whatever the investment, it's in your estate (trust funds of more than 7 years aside). When you die, your wife gets the lot (up to the nil rate band in force at the time). Any children stand a chance of inheriting later on too.

Annuity rates are so poor that, aside from the employer's contribution and the tax rebate of personal pension contributions, it's a bit of a waste of time after they take their charges and apply "smoothing". Smoothing is sold to us as a way of ensuring funds aren't hit badly in turbulent years, but they also hold back money when things go well. I'd sooner the investment was rewarded in line with the investment company's market performance for any given financial year, but i'm sure that would hit them in the pocket! One thing that is for sure is that "smoke and mirrors" confusion around these investments abounds!

A few years ago when annuity rates were better, to get an annual pension of £35k required a pension fund of around £700k.

Now work out how long you are likely to live after you retire. The average age for a man is 78. If the individual had not invested in the pension fund, he may have had less cash built up at retirement due to not getting tax an non-contributory benefits, lets say £500k. Assuming he/she wanted to take as much as £35k a year, this would last around 15 years. If you add the continuing growth in the investment it's going to last longer. Potentially it could last a lot longer, but as you have the money, you can protect it from big market fluctuations. You can take the risks to grow the investment. Perhaps you would buy property to let. Their would be a yield from rental income as well as the increase in the value of the property (inevitable over the long term).

If you have a private pension fund, I recommend taking up smoking a year or two before you retire. You will get a much better annuity rate because the provider, statistically speaking, is expecting you to die sooner.

How depressing!!