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30 and confused about pensions ?
loobyloo168
Posts: 56 Forumite
Hello all,
Im 30 and my OH is 29. The company he works for is messing about with there final salary pensions again, having them either changing the FS pensions or giving them the optio to change to another sort of pension.
He has been advised by his manager whos also a friend to start putting money away ourselves, but we really dont have a clue about pensions and what we have to do, do we just save save save or have a proper pension plan ?
Im self employed but only earn £30 a week at the moment so im not in a position at all to save.
The company did opt everyone into a Salary Sacrifice Scheme which he opted out of as we didnt understand it.
Unfortunalty were not very good with understanding all the jargon they put everything into.
In 4 years we would have paid all over credit card, and car loan off, so we would be up £420 a month and i plan to return to a proper job once our daughter starts full tme school in September
Any advice appreciated. Simpletons language though please !
Im 30 and my OH is 29. The company he works for is messing about with there final salary pensions again, having them either changing the FS pensions or giving them the optio to change to another sort of pension.
He has been advised by his manager whos also a friend to start putting money away ourselves, but we really dont have a clue about pensions and what we have to do, do we just save save save or have a proper pension plan ?
Im self employed but only earn £30 a week at the moment so im not in a position at all to save.
The company did opt everyone into a Salary Sacrifice Scheme which he opted out of as we didnt understand it.
Unfortunalty were not very good with understanding all the jargon they put everything into.
In 4 years we would have paid all over credit card, and car loan off, so we would be up £420 a month and i plan to return to a proper job once our daughter starts full tme school in September
Any advice appreciated. Simpletons language though please !
0
Comments
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do we just save save save or have a proper pension plan ?
Two different things.
A pension is just a container for your investments. As is an ISA and some other products. So, if your objective is to save for retirement, then pension is a tax wrapper/container for you to use which may be the best option to do that. However, if the objective is to save for a daughters wedding in 20 years time then the pension would be totally wrong. Wheras using just a cash savings account for 40-60 years for retirement provision wouldnt be best either.
You have to use the right things for the right objectives.Im self employed but only earn £30 a week at the moment so im not in a position at all to save.
Think of yourself as a couple. Not individuals. You are self employed so you get less state pension. So, you need to have something. Just because you dont earn much a week, your partner/spouse can pay it.The company did opt everyone into a Salary Sacrifice Scheme which he opted out of as we didnt understand it.
Almost certainly a bad decision. Especially if the employer is making additional contributions.Any advice appreciated.
We cant give advice as that isnt allowed. Plus, it would be impossible to do so as we dont know the facts. We can just give pointers and discussion.
However, you do need advice and quick. You are still young enough to plan for retirement without it costing the earth. You need some "training" to understand the options. So, get some advice from a local IFA. Get your OH to get hold of the pension scheme details and show them to the IFA. Look in particular for employer contribution. AKA "free money".I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Okey dokey, sounds abit simpler. Thank you very much xx0
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