Money, money, money...

It's back to get me again. This time in the form of *pensions* (dun-dun-duuuuuh). I'm 27 and I think I have a pension of about £23.94 a year from my old council job. I'm not paying taxes (as a scummy student), but don't figure I'll be getting a state pension when I retire anyway. So what's a girl to do...

I've just discovered the stakeholder pension scheme (formed, like, 10 years ago!) and am trying to understand it. Basically it's government run and you get 25% added to whatever you put in, the company you get it through can charge you 1.5% on your investments, and when you want to retire you effectively 'buy' an annual salary, and can get a 25% lump sum tax free. Of course, you have to pay tax on your pension...

But it seems I'm actually better off using my 'tax free' allowance of the use-it-or-lose-it variety in the form of my ISA, as you can actually put a lump sum into a pension scheme later on. So I shall continue to put in my money each month, and can use it for other things in the interrim if I like. Ah, it's all so confusing!