For the last year since graduating, I have been paying 6% and my employer 12.8 into a final salary pension. I know I can transfer this to another scheme if I move job, as long as it is a final salary scheme, but would I be better investing my money in the stock market so I have more control, albeit exposed to more risk?

Anyone care to comment on the pension situation now in the UK?



Wednesday, 4 April 2007, 11:09 GMT 12:09 UK

http://news.bbc.co.uk/1/hi/business/6525587.stm

Pensions 'not better than ISAs'

ISAs are more flexible than pensions
Millions of Britons could be better or equally well off investing in an Individual Savings Account (ISA) rather than a pension, a report has said.
The report from website Everyinvestor.co.uk goes against many experts' view that pensions are best because contributions enjoy tax relief.


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The arguement goews back and forth. But my problem is a little nearer to home.

My daughter has recently joined a company on a graduate scheme.

The pay and perks are pretty good, however this company only offers a money purchase pension scheme.

The company will pay a contribution of 6.6% of your salary, and you contibute 5.40% (min) towards the scheme. Tax relief makes this lower.

Ther are no guarantees as to what you will recieve when you eventually retire.

Which of course is the main problem. Do you hand your money over to the city gents and hope for the best? Or try for a different solution?

My own experience with "managed" funds is awfull...ie, a so called endowment, which cant even keep up with high street bank deposits. (RSA)


Any suggestions?