Workplace Pension Or Isa

[kanny 20,768]

I'm not to savvy when it comes to financial things so ...would I be better paying into a isa instead of enrolling in the workplace pension scheme... I don't like the idea of the government using and controlling my money but on the other hand I dont want to loose out so what's your thoughts. ..keep it simple lol.

Edited March 10, 2016 by kanny

[Lloyd90 509]

Work out what return the ISA would give you, Google ISA calculator and probably one online to figure out the return.

 

Compare this with how the work place pension works.

 

I'm genuinely worried that when I come to retire there won't be any pension left. Might opt out and just try to stick money into houses and renting to students or graduates.

 

Way house prices are going I think in future most people will never be able to afford one, so rental will always be big!

[air gun ant 1,666]

Work out what return the ISA would give you, Google ISA calculator and probably one online to figure out the return.

 

Compare this with how the work place pension works.

 

I'm genuinely worried that when I come to retire there won't be any pension left. Might opt out and just try to stick money into houses and renting to students or graduates.

 

Way house prices are going I think in future most people will never be able to afford one, so rental will always be big!

your making sense to me but I'd still pay into the pension fund (because I don't no any better TBH lol) if I pay 5% so does my boss? And im really shit at saving money

[tsteve9999 456]

Buy property and rent it out. Be careful with students though, they tend to move on quickly meaning you will be forever having to redecorate and such. Far better imo to find someone who will stay for years.

[DIDO.1 22,846]

Gold coins and handguns :-)

[Plucky1 1,119]

Most pension funds have a poor return when you understand how they work,the only good scheme was run by government bodies for their employees of the NHS,civil servants,firemen etc, it was that good you could retire after 25yrs in fact many council workers had better pay after retirement,that was gotten rid of a number of years ago and its replacement is no better than a lot of private funds. Maxwell was the start of the rot when he stole 18million out of his employees pension fund and disappeared using it to fund a lavish lifestyle,many others followed suit leaving pensioners that had paid into company schemes without a fund to retire on,many had been putting extra voluntary contributions wrongly thinking they would be secure in their old age. Many company schemes are corrupt and have mostly family members on the board of trustees to ensure the funds are released when needed using it like a private loan when needed,the larger company schemes use the money to acquire large out of town retail parks and then rent out the spaces to fund their pensioners that have already retired and there lies your pointer,if buying property and renting it out is how they are funded then providing you're not in a bad area or poorly conditioned housing stock you will make money by either renting out or moving on the stock when prices rise,the skill is predicting the next popular area. There are lots of pitfalls in pension schemes as they will warn you that funds can go up or down depending on stock markets,trading and poor investments,the company providing the pension scheme can make a profit or loss legally using your money to gamble with and you will still be charged an annual fee for that privilege, this handling charge comes out of your fund,so the provider(scheme owner) can never lose meanwhile your fund is getting smaller even though you have paid in lots in the last 12 months,that is why sometimes your pension fund doesn't grow,it is always the pensioner that loses out by footing the the bill for their poor investments.Lastly and this is the biggest fiddle ever,there is nothing stopping 2 different companies swopping ,i.e.; legal and general sell your companies pension scheme to a bigger say Royal life scheme and yes you've guessed it,YOU will pay for that privilege reducing your fund further,there are many other fiddles that are also legal and you will have no control of, if you are only ever going to work for 1 large company your whole life and its a known good scheme then it "may" be worthwhile but if you flit from job to job or contract out a lot on zero hour contracts then buy a pension off the bank that will follow you wherever you work, lots of small amounts in different company schemes will not pay you a retirement pension worth a fig, your choice,WM

[TOPPER 1,809]

the workplace pension is a complete waste of time a good isa will be your best or buy land and rent that out lot less agro than houses the pony set are allways good for cash rentals

[steg 609]

ISA's aren't doing that well at the moment..UNLESS you say goodbye to you're money for the next 3 or 4 years and get tied in for that period. Their is risks you take (after all the banks are gambling with your savings)

 

I can't knock my works company pension.. they put in what i do each month (without getting the mountain of paperwork out i think it's upto 7-8%) Also with the benefit of a (plus) big lump sum for the family if I pop my clogs in service. Must state though ive worked there 20 plus years and got no intention of leaving (lotto win considered though)