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  • FIRST POST
    • drummer_666
    • By drummer_666 6th Mar 17, 8:29 PM
    • 971Posts
    • 235Thanks
    drummer_666
    Several part time jobs and self employed
    • #1
    • 6th Mar 17, 8:29 PM
    Several part time jobs and self employed 6th Mar 17 at 8:29 PM
    Hello,

    I'm 31 and have no pension.
    Basic tax rate payer.

    Self employed:
    - Gardener
    - Run a small online shop
    - Casual climbing wall rigger, few random days / half days through the year.
    - Freelance climbing instructor

    Employed
    - Local council - climbing instructor, averaging 2.5 hours a week, nothing during summer or winter school holidays. Started here Dec 2016, they put 6.5% of my salary into a pension.
    - Youth Centre - climbing instructor 14 hours a week. No pension at the moment.

    I emailed the council to ask about increasing my pension payments and they said

    "If you wish to contribute more, you can do this by paying Additional Voluntary Contributions (AVCs)to Prudential or by paying Additional Pension Contributions (APCs) to buy extra pension."

    And I am now totally confused.

    I've read the links they sent about AVC and APC and I don't understand if one is better than the other or why.

    And as I work so few hours with the council I'd want to increase my pension payments by a percentage of my salary not a fixed amount, but there seems to be no option for that.

    Do you think I may be better not paying extra, but setting up a self employed pension instead? One that's flexible where I can pay more on my higher earning months and not pay through winter?

    I'd really appreciate if anyone can shed any info to clear up the confused mess in my head!

    Thank you
    Last edited by drummer_666; 06-03-2017 at 8:37 PM.
Page 1
    • mgdavid
    • By mgdavid 6th Mar 17, 10:40 PM
    • 5,183 Posts
    • 4,347 Thanks
    mgdavid
    • #2
    • 6th Mar 17, 10:40 PM
    • #2
    • 6th Mar 17, 10:40 PM
    Do you have an emergency fund equivalent to 3 to 6 months living costs? (what happens if you get injured and can't work - sounds like you might be at higher risk of this than most people?)

    Do you have other savings eg ISAs? Pensions are good but so is diversifying your savings and investments.
    A salary slave no more.....
    • drummer_666
    • By drummer_666 7th Mar 17, 1:13 PM
    • 971 Posts
    • 235 Thanks
    drummer_666
    • #3
    • 7th Mar 17, 1:13 PM
    • #3
    • 7th Mar 17, 1:13 PM
    Yes I have savings of more than that. £10k in ISA and around £6k sitting in my bank doing nothing, I'll want that in a few years for deposit on second house or bigger house, once I've added to it. I do need to look into investing that short term though.

    I've just found out that with my 14 hr a week contract, since I have now been there 3 months my pension will start. Automatic 3% staff, 3% employer. Managed by Legal & General.

    I can increase (but don't know by how much) but employer stays at 3%

    I'm now wondering if it may be better to increase my contribution with this employer, who I think I will work for a lot longer than the council. Or keep it as it is and set up a NEST pension or similar
    • xylophone
    • By xylophone 7th Mar 17, 1:17 PM
    • 22,361 Posts
    • 12,898 Thanks
    xylophone
    • #4
    • 7th Mar 17, 1:17 PM
    • #4
    • 7th Mar 17, 1:17 PM
    Or keep it as it is and set up a NEST pension or similar
    A simple personal pension?

    https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/
    • drummer_666
    • By drummer_666 7th Mar 17, 1:50 PM
    • 971 Posts
    • 235 Thanks
    drummer_666
    • #5
    • 7th Mar 17, 1:50 PM
    • #5
    • 7th Mar 17, 1:50 PM
    Thanks for the link I read up on some info about the different pension options on there.

    From what I can see a stakeholder pension is simpler than a personal pension

    It says SIPP's tend to be cheaper than personal pensions
    And Stakeholders tend to be cheaper than SIPP's

    Personal have more investment choice, but I don't want the choice, I want somewhere to put my money that takes care of itself. Literally a standing order that goes out of my bank, where I can transfer extra on higher earning months and that's it.

    I know some have more risk than others though and that is what I'm not clear on. I want minimal risk, even if that means lower returns, the only reason I'm starting a pension is for security

    thank you
    • atush
    • By atush 7th Mar 17, 2:34 PM
    • 16,155 Posts
    • 9,850 Thanks
    atush
    • #6
    • 7th Mar 17, 2:34 PM
    • #6
    • 7th Mar 17, 2:34 PM
    £6k sitting in my bank doing nothing,
    Open an interest paying current acct?

    Join the new work pension, then open a S&S isa if you ha e cash left over for now. Or look at an insurance policy re point in post2
    • drummer_666
    • By drummer_666 7th Mar 17, 3:09 PM
    • 971 Posts
    • 235 Thanks
    drummer_666
    • #7
    • 7th Mar 17, 3:09 PM
    • #7
    • 7th Mar 17, 3:09 PM
    Open an interest paying current acct?

    Join the new work pension, then open a S&S isa if you ha e cash left over for now. Or look at an insurance policy re point in post2
    Originally posted by atush
    Interest is peanuts in current acct at the mo, hence why i say it's doing nothing.

    I've had insurance in the past, but I don't need it now as I have enough money in case I need to take a chunk of time off work due to injury/illness

    I will look into S&S isa's thank you for the idea
    • greenglide
    • By greenglide 7th Mar 17, 4:26 PM
    • 2,780 Posts
    • 1,771 Thanks
    greenglide
    • #8
    • 7th Mar 17, 4:26 PM
    • #8
    • 7th Mar 17, 4:26 PM
    Interest is peanuts in current acct at the mo
    Only because you are in the wrong one. Lloyds, TSB, Nationwide, Tesco all have high interest current accounts.
    • xylophone
    • By xylophone 7th Mar 17, 4:57 PM
    • 22,361 Posts
    • 12,898 Thanks
    xylophone
    • #9
    • 7th Mar 17, 4:57 PM
    • #9
    • 7th Mar 17, 4:57 PM
    Tesco current account is unavailable to new applicants at the moment.
    • drummer_666
    • By drummer_666 9th Mar 17, 2:25 PM
    • 971 Posts
    • 235 Thanks
    drummer_666
    Only because you are in the wrong one. Lloyds, TSB, Nationwide, Tesco all have high interest current accounts.
    Originally posted by greenglide
    I'm with Nationwide and have a current account, e ISA and cash builder account
    • xylophone
    • By xylophone 9th Mar 17, 2:42 PM
    • 22,361 Posts
    • 12,898 Thanks
    xylophone
    I'm with Nationwide and have a current account, e ISA and cash builder account
    Have you considered the Flexdirect account and associated regular saver?

    http://www.nationwide.co.uk/products/current-accounts/flexdirect/apply

    http://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits
    • drummer_666
    • By drummer_666 11th Mar 17, 8:03 PM
    • 971 Posts
    • 235 Thanks
    drummer_666

    thank you but you need to pay in £1,000 per month for the flex direct and I earn a lot more than that in some months but under that for winter months
    • stardust09
    • By stardust09 11th Mar 17, 8:32 PM
    • 237 Posts
    • 208 Thanks
    stardust09
    thank you but you need to pay in £1,000 per month for the flex direct and I earn a lot more than that in some months but under that for winter months
    Originally posted by drummer_666
    That doesn't have to be earnings. You just need £1,000 coming into your bank account from another external bank account. Lots of us here have a savings lump sum of £1,000 bouncing around from account to account so we qualifty for this bonus. E.g. Halifax to Nationwide to Santander and back all over again - I actually have my £1,000 bouncing through five accounts per month!. If you have lots of accounts, you need to line up your transfer dates properly but it's so easy once it's up and running. It's worth it for the interest, albeit decreasing by the minute...
    • drummer_666
    • By drummer_666 12th Mar 17, 4:31 PM
    • 971 Posts
    • 235 Thanks
    drummer_666
    interesting, looks like I need to open another bank account as I only have Nationwide at the moment

    I see they only pay the 5% for 12 months. what do you personally do? keep opening/closing accounts with different banks?

    thanks a lot
    • mgdavid
    • By mgdavid 12th Mar 17, 11:44 PM
    • 5,183 Posts
    • 4,347 Thanks
    mgdavid
    interesting, looks like I need to open another bank account as I only have Nationwide at the moment

    I see they only pay the 5% for 12 months. what do you personally do? keep opening/closing accounts with different banks?

    thanks a lot
    Originally posted by drummer_666
    Pretty much, yes.
    A salary slave no more.....
  • jamesd
    Risk and security have opposite meanings for short and long time periods.

    In the short term investments in share funds can go down by 45% or so in a bad year before recovering over the next few years. In the long term they on average grow more than the other choices and that's what you need for long term retirement income protection. So what you need is as much share-based investing as you can stomach for short term ups and downs to get the long term security.

    Because the your deposit need is short to medium term it's not normally appropriate to use lots of share-based investing because the down could happen just before you need the money.
    Last edited by jamesd; 13-03-2017 at 2:21 AM.
    • atush
    • By atush 13th Mar 17, 12:11 PM
    • 16,155 Posts
    • 9,850 Thanks
    atush
    Only because you are in the wrong one. Lloyds, TSB, Nationwide, Tesco all have high interest current accounts.
    Originally posted by greenglide

    This was what Iw as talking about. Thought I was rpetty clear, but I guess not?
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