Pensions

[Funky Dave]

Same difference. Your money will buy you less. If you put it in your account you'll get very little interest on it compared to the rise in prices. If you have £150 in your account now it'll buy you a lot more now than in 10 years time. The only way round this is to invest your savings. I'd reccomend a mini ISA as you can't lose money, the savings aren't taxed and you get a much higher rate of interest than in normal accounts.

[Andy]

Originally posted by Funky Dave

I'd reccomend a mini ISA as you can't lose money, the savings aren't taxed and you get a much higher rate of interest than in normal accounts.

 

Some ISAs can lose money - all depends on what type of ISA it is.

 

The thing about pension schemes is, your money is pooled with everyone elses. Because there's more money, it can be invested in a wider range of things, meaning risk is spread.

 

To get a good rate of return, you have to be prepared to take some risk. It's just a trade off between how big a return you want to see, and how much of a risk you are prepared to take.

[Norbo]

Don't forget that paying the money in to a pension fund also attracts tax relief - i.e. for every £100 you pay in the tax man puts an extra £22 (or whatever) in for you.

[Dug]

Originally posted by Andy

Some ISAs can lose money - all depends on what type of ISA it is.

 

 

I think he was referring to a cash ISA.

[Grissom]

Sir Trevor McDonut is doing a program on the pensions crisis on ITV in around 7 mins