Some Financial Advice

[Barnet Seagull]

What should he take?

If offered the choice of a 5% increase in salary or a 5% matching contribution towards a stakeholder pension

Seems to me that so long as they offer the contribution at the same level each year, both are identical.

 

[Deano's Right Foot]

Well, if he is a 40% taxpayer then he will have £1,000 added to his pension fund for each £300 he persoanlly puts in, so the pension looks good, but then again will the pension be worth anything by the time he retires?

I'm was born in a baby boom and MOST people will be of pensionable age by the time I retire so I can;t imagine there'll be enough money to pay me anything....

 

[Deano's Right Foot]

....

 

[Woodchip]

Having sat my FPCs (Financial Planning Certificates) I should say the pension fund. However the alcoholic and gadget-freak in me says take the money.

The main point to ask is how old are you, what existing future plans do you have? Do you have a large house, that when you retire you could move into something smaller and buy a good annuity with (as housing generally rises faster than RPI)? It's different strokes for different folks.