Pensions for Dummies .....

Glowing

Hi there,

I'm currently working with an umbrella company for the last year or two, and I feel it might be time to start a pension (I'm 28). I'm going to be moved over to a LTD company where I'll be 'director', but my contract is only guaranteed until October.

So the Umbrella staff suggested I start an 'Executive Pension' - can anyone PLEASE explain what this is, and how it differs from a regular Pension? And when starting a pension, am I better off setting up one with the employer or independantly with a bank or whatever? How can I compare pension schemes?

I'm really reluctant to phone them up for advice yet because I REALLY have no clue what they're talking about. What are the questions I need to ask?

Would really appreciate your assistance here!!

Pension-dummy

bills

an executive pension plan is a type of occuptional pension scheme usually set up with a life assurance company for one employee who usually is an executive or director. An employer must contribute to this & you should check out how much thay are contributing. They will probably require you to contribute so much from your wages also. The main benefit of this for you is that your employer is contributing as opposed to if you set up a pension independently.

Glowing

Thanks a million Bills,

Should the employer be contributing the same amount that I do? Or does it depend? What sort of figure can I expect?

bills

i would say 5-10%