Is it worth sign up for ShareSave Scheme

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  • Anonymous101
    Anonymous101 Posts: 1,869 Forumite
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    I'm in two scheme's at the moment.

    As others have said the only real risk is the opportunity cost. If you'd have just saved that money in cash savings accounts then really there is no risk as interest rates are so low.

    You need to decide for yourself whether your particular scheme offers good value against an alternative investment. I did consider investing the same amount of money into my stocks and shares ISA but once I had made allowance for dividends, growth and fee's plus considered any risks I concluded my 20% discounted share save scheme was better value and invested as much as I could.
  • Tom_Brine
    Tom_Brine Posts: 80 Forumite
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    I pay the full £500 monthly allowance into mine on a 5 year plan. Currently have £9500 saved at an option price of £7.45. Shares are currently worth £9.47 though have taken a bit of a downward tumble these past few weeks I have three years left for the price to rise even more.

    Bottom line is its a zero risk savings scheme. You forget about the money as the monthly deduction becomes the norm. Then come the end of the scheme you take your shares and can instantly sell them for profit. My scheme even offers you to take your shares into an ISA wrapper at close in order to avoid capital gains tax when you do sell.

    It really is the first place you should be putting your money if you have the option.
  • MallyGirl
    MallyGirl Posts: 6,627 Senior Ambassador
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    My company only allows £250 pcm even though the taxman would permit up to £500 but it is still worth it.
    Last time the option price was set at £4.85 and by the time I sold 3 years later they were at £12.13. Since I had put the full £250 in for 3 years that meant I made a profit of £13,494 and I had to learn about CGT and transferring some shares to DH to avoid paying it. A nice problem to have! I don't expect I will see that sort of rise again but I will still keep with the scheme for the chance. Even if the shares stay absolutely static I would make the 20% that my firm discounts by when setting the option price. If they drop below the option price I would just take the cash and have lost out on a small amount of interest.
    Go for it.
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  • greendoor665
    greendoor665 Posts: 126 Forumite
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    edited 19 September 2017 at 4:19PM
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    Yes, they are well worth it. I have my first scheme maturing in December. The share price is currently over 50% higher than the option price so I'm quids in. I will be immediately selling my shares to divest myself from the concentration risk and investing most of the money in passive tracker funds in an ISA.

    Here is an excellent guide on how to use them and why they are worth it.
  • Crystal_Pixie
    Crystal_Pixie Posts: 88 Forumite
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    Just had an offer with my company with a 30% discount.


    Its a no brainer really if you can afford to save.


    I agree I wouldn't keep the shares but sell and put the money into my S&S ISA.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    Crystal_Pixie wrote: »
    Just had an offer with my company with a 30% discount.


    Its a no brainer really if you can afford to save.


    I agree I wouldn't keep the shares but sell and put the money into my S&S ISA.

    Is a 30% discount allowed by HMRC?
  • Engineer87
    Engineer87 Posts: 29 Forumite
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    What happens to your money if next retail suddenly goes into administration next year for example, would they still honour they're agreement?
  • greendoor665
    greendoor665 Posts: 126 Forumite
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    edited 20 September 2017 at 7:01AM
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    The money is held completely separately in a ring fenced account by a different company. For example my company's scheme is held by Yorkshire Building Society. You don't buy the shares until the scheme matures, so if the worst was to happen to your employer you'd get your money back.
  • Fatbritabroad
    Fatbritabroad Posts: 573 Forumite
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    Absolutely no downside the only thing you'd potentially lose is the interest you'd earn if you left it in the bank. This has been my best investment over the years. I bought at 45 p sold at 90. Bought at 95 and sold at 212 with my company
  • Fatbritabroad
    Fatbritabroad Posts: 573 Forumite
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    uzzy2686 wrote: »
    Hi guys,

    I am working for Next Retail and recently i checked on online portal they are opening ShareSave Scheme for a limited time, to be honestly i never done that before so i need some help if its worth doing it and if i do how does it work. Is it like i will buy some Next shares and when the value grows i can sell it etc etc

    Clear explanation would be required if possible.

    Have a good monday.

    Cheers
    Uzzy
    PeacefulWaters wrote: »
    Is a 30% discount allowed by HMRC?


    I'm not aware of any limits on this but I'd think they'd have checked. My company does 2. One standard as described above with a 10% discount. And aniter5 where I can buy out of my gross salary pre tax. That's allowed as long a single hold for 5 years its tax free
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