Pension

[Mountainjoe]

What percentage of a 24-year-old's annual salary should be put into a pension?  2%; 12%; 25%.

Thanks.

[WoWo]

As much as possible. Having said that pension contributions are tax free (you don't even pay income tax on them) up to 15% so it's not really worth putting anything more directly into a pension.

Any additional money would be better inversted somewhere else.

So I'd say if you can afford it put in the full 15% or as close as possible.

[Mountainjoe]

Thank you.

[WendyS]

I strongly agree.  Pay in as much as you can afford, especially if you're in a Money Purchase (also known as Defined Contribution) scheme.  The more you pay in during the early years, the more the value will hopefully build up.  There is always a great temptation to leave pension planning until middle age.  Sadly by then it is far too late to make up the deficit and many people have suffered the disappointment of having dreams of early retirement dissolve when they  sit down to do the sum of how much they need to live on versus how much their pension will provide.

[Mountainjoe]

Thanks.

[Sasha13]

Obviously as much as you can afford, but no less than half of your age in percentage of your salary is what I've been told. i.e. if he's 24 years old you need to put in around 12%.

[Mountainjoe]

Thank you.  You've all been very helpful.