My answer is no. I don’t have a pension. Oops. I probably should have sorted this out as soon when I was working full time. I’ve kind of wasted the past 7 years but it’s never too late to start saving.
As with all things financial, I’m clueless. I think the hubby had a pension with his previous job, but he was made redundant in December and is now a self-employed apprentice, so he needs to set up his own pension.
I’ve just been introduced to Nutmeg and their ever so helpful pension calculator online. The calculator gives you the opportunity to look at what you need to save to create the sort of income you want from you pension. For example, you might want something equivalent to 20k when you retire. For this you need to save £557 per month.
When you create a Nutmeg pension, their expert team first builds a portfolio that is aligned to the level of risk you’re comfortable with. They then monitor it for you. You can simply pay an amount each month and relax, knowing someone else is taking care of the rest. If you want to take a look at your progress then logging into your account is quick and easy. You can take a look at your progress and monitor your money.
One thing that stood out to me about Nutmeg, is the instant 25% top up. Nutmeg automatically add your 25% government tax relief as you make monthly payments into your pension pot – all out of their own funds. That way, you can start benefitting from the extra contributions to your investment portfolio straight away. Nutmeg are one of few retail pension providers to do this in the UK.
I’m sure you’re wondering what’s in it for them? Well, they charge an annual fee of between 0.3%-1% including VAT, which is apparently amongst the lowest for a fully managed personal pension. There are no set-up charges, exit penalties, or commission fees when they trade on your behalf.
As I mentioned earlier, I know nothing about this stuff. Bad I know. It’s time for me to take some control over my finances and look in to things like pensions.
So, right now I can’t afford to save anything. I mean literally nothing. But at the end of the year I’m launching my new business and keeping everything crossed that it’s successful and earns me a penny or 2. When the time is right I’ll be heading to someone like Nutmeg to find out about starting a personal pension.
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