Pensions

[manc red]

As im 22 i have never really looked into this in any way.  I recently got offered a job and received the contract today.  As part of this i am signing up to the companies pension scheme.

There are 4 different 'investment fund choices' which i can split my contribution between if i choose. They are:

1) Global Equity 70:30 Index Fund
2) Over 5 Year Index-Linked Gilts Index Fund
3) Over 15 Year Gilts Index Fund
4) Cash Fund

If anyone could tell me simply what each of these are or if anyone is on a similar scheme and could offer any advice that would be much appreciated.

Cheers

[flammableBen]

Tell them to stick their pension scheme up their arse and take the cash. Live for the moment man.  

[Fred Elliot]

Tell them to stick their pension scheme up their arse and take the cash. Live for the moment man.  

 

you are certainly the man Ben

[Fred Elliot]

As im 22 i have never really looked into this in any way.  I recently got offered a job and received the contract today.  As part of this i am signing up to the companies pension scheme.

There are 4 different 'investment fund choices' which i can split my contribution between if i choose. They are:

1) Global Equity 70:30 Index Fund
2) Over 5 Year Index-Linked Gilts Index Fund
3) Over 15 Year Gilts Index Fund
4) Cash Fund

If anyone could tell me simply what each of these are or if anyone is on a similar scheme and could offer any advice that would be much appreciated.

Cheers

PM Sharkey mate

He is GOD where these money things are concerned.

Pensions are an absolute minefield at the moment and forecasts change dramatically.

[Samdy Gray]

1) Global Equity 70:30 Index Fund

Stocks and shares. Potentially huge gains but fairly high risk.

2) Over 5 Year Index-Linked Gilts Index Fund
3) Over 15 Year Gilts Index Fund

Gilts have guaranteed interest, they're government bonds. 15 year ones have higher interest than 5 year ones, because your money is tied up longer. You're only 22 so I'd go with a 15 year one.

4) Cash Fund

Just as it says really, basically a high-interest deposit account with a bank. This type of fund is more worthwhile when you're nearing retirement and don't want to risk the fund you've accumulated falling.

If it was me, I'd go 75% equity - 25% 15 year gilt.

You've got a good 40 years+ until you retire so the equity markets will go up and down a lot in that time, so it's not too high risk at the moment. It's indexed as well so you're money will keeps it's worth.

The gilts will give you a bit of security with a fairly good level of interest.

[Barry Scott]

There are 4 different 'investment fund choices' which i can split my contribution between if i choose. They are:

1) Global Equity 70:30 Index Fund
2) Over 5 Year Index-Linked Gilts Index Fund
3) Over 15 Year Gilts Index Fund
4) Cash Fund

If anyone could tell me simply what each of these are or if anyone is on a similar scheme and could offer any advice that would be much appreciated.

Cheers

1) A 70:30 Global investment fund normally is 70% Uk Equity and 30% Other Global Blue Chips.
2 & 3 are investments in government gilts. A Index linked Gilt has a interest rate which is designed to protect against inflation. IMAO Gilts are toss.
4) Most Cash funds are considered secure, much like Gilts, the returns are limited as they are similar to deposit accounts.

I would stick all my money in the 70:30 fund, it's not going to be too high risk, and will in all likelihood offer greater returns over the long term when compared to the others.

For some kind of balanced investment a 40% split within the cash fund and 60% in the 70:30 would provide some security and leave you linked to the equity markets to enough of a degree, to hopefully, increase returns.

I wouldn't be too concerned with security at your age, bang it all in the 70:30 (or see if they offer any high risk funds, India, Russia...) then leave it be till you're of an age where you can be concerned with the volatility of the fund.

[lebowski]

are you qualified to give advice or am i going to have to report you to the fsa?

[lebowski]

(or whoever regulates pension plans)

[Simon Pieman]

Just a thought - who manages the fund and what's it's make up? Just thinking because if you move jobs some time in the future the new firm may force you to get out of it.

[Samdy Gray]

The FSA have mich bigger fish to fry. I hate the cunts. They make my working life miserable.

[Barry Scott]

are you qualified to give advice or am i going to have to report you to the fsa?

You're going to have to report me.  

Although they couldn't do fuck because i do not work within the finance industry and am not bound by their bollocks.

[flammableBen]

You are all talking utter shit. He's 22, my advice stands. Maybe compliment the beer with some high risk bookie investment.

[blinkpip]

I do a company pension. I pay 30 a month and my company pay in £30 a month. I never really read to much into it. I was told by my parents to do it when I was 16   I have no clue how much I got.  

[Samdy Gray]

I do a company pension. I pay 30 a month and my company pay in £30 a month. I never really read to much into it. I was told by my parents to do it when I was 16   I have no clue how much I got.  

Is that a finaly salary pension? Contributions seem a bit low for that. My pension contributions are about £100 a month.

Ask your HR dept. for a projection of benefits at retirement. Fund values on pensions mean fuck all in the early years.

[manc red]

Just a thought - who manages the fund and what's it's make up? Just thinking because if you move jobs some time in the future the new firm may force you to get out of it.

It seems to be run by the 'Railways Pension Scheme'.  I think if i move within the field it will be fine dont know about beyond that.

Cheers for the advice so far, at least i generally understand whats being offered now.