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    Calling out Reue on this as I have some questions. Anyone else with knowledge please chip in too.

    1) Say over the course of my career between me and my employers, we pay £200k (nominal) into my pension. Does that mean over the course of my retirement I'm entitled to receive the real value of that £200k?

    I should be getting more than that £200k though, right? Otherwise why bother giving my money to the pension fund in the first place.



    2) So on top of their core contributions my employers is offering to match my pensions contributions 1:1 up to 4% of my salary, i.e.

    if I paid 4% of my salary into pension, they'd also pay in 4%
    if I paid in 5% of my salary into pension, they'd pay in 4%

    But tbh I dont really understand pensions enough, and so am currently not taking up this offer. Instead I am putting the money into an investment account making me c.7% p.a.

    But I'm wondering if this is a mistake? I'm not sure which is the better option to have accumulated the most money in c.40 years when I retire.
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    (Original post by Death Grips)
    1) Say over the course of my career between me and my employers, we pay £200k (nominal) into my pension. Does that mean over the course of my retirement I'm entitled to receive the real value of that £200k?

    I should be getting more than that £200k though, right? Otherwise why bother giving my money to the pension fund in the first place.
    You would assume that money will have grown beyond the actual £200k deposit with the investments.

    You'd then be entitled to either buy an annuity with the pot (which pays out a set amount every year until you die) or start withdrawing from the pot in the same way you would from a bank account, however youd have to pay tax on it as it's your income.



    (Original post by Death Grips)
    2) So on top of their core contributions my employers is offering to match my pensions contributions 1:1 up to 4% of my salary, i.e.

    if I paid 4% of my salary into pension, they'd also pay in 4%
    if I paid in 5% of my salary into pension, they'd pay in 4%

    But tbh I dont really understand pensions enough, and so am currently not taking up this offer. Instead I am putting the money into an investment account making me c.7% p.a.

    But I'm wondering if this is a mistake? I'm not sure which is the better option to have accumulated the most money in c.40 years when I retire.
    Why would you not want to put money in if your employer is matching it? Your money will literally double as soon as it hits the account.. I don't know any other investments which will double your investment instantly!
 
 
 
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