Are you also saving for retirement?

Dithering_Dad

Just been having a bit of a pensions/retirement chat with Pobby on another thread and it made me think about whether those people in here, who are saving like mad for a house deposit (and prudently waiting for house prices to normalise), are also making sure they're saving for their old age.

I also contribute on the MFW board and one of the accusations directed against MFW's is that we're putting too much money into a single asset (our houses) and neglecting other investments such as our emergency and retirement savings. A quick straw poll found that most of us had company pensions and sufficient emergency savings and that we only paid spare money onto the mortgage after paying into both of these.

As saving into a house purchaseg pot is very similar to overpaying into a mortgage pot, I thought it'd be interesting to do the same straw poll here.

longtimelurker_2

Yep, I have a Company/Personal Pension and/or ISA savings

My partner and I are only 22, I currently don't think we've got our priorities wrong in saving for a deposit before stashing money into savings for our old age.

ShelleyC_2

Yep, I have a Company/Personal Pension and/or ISA savings

The earlier you start thinking about retirement the easier it is.

I have a hopefully good pension plus an isa pot

longtimelurker_2

Yep, I have a Company/Personal Pension and/or ISA savings

True, though we both pay around 150 pounds a month into company pensions - the poll went up after I replied and I assumed we were talking personal savings!

lostinrates

Yep, I have a Company/Personal Pension and/or ISA savings

I've put yes, but have to admit only in the most basic of ways: DH has a small pnsion through work....first on we've had, we are 30 this year . Everything extra ATM goes into the house fund, I do see the imbalance of this.

Really2

I will worry about this once I have bought my house!

Yes and no.

Did have a poor private pension which I jacked in (novemeber) as it was virtualy worthless (especialy now).

Now trying to pay off my house in less than 15 years. Should give me 27 years to do my pension. ( I don't see the point of a pension when in debt as mortgage free retirement could be worth a lot of money)

But wife Is in local goverment so will get a good pension.

Although not great my priority is mortgage free first.

Dithering_Dad

Yep, I have a Company/Personal Pension and/or ISA savings

longtimelurker wrote: »

True, though we both pay around 150 pounds a month into company pensions - the poll went up after I replied and I assumed we were talking personal savings!

That's a really decent amount to be putting away at your age. The rule of thumb seems to be that the earlier you start paying into a pension, the longer the investment has to grow and the less you have to pay into it.

I remember seeing an article where it said you'd have to pay twice as much into a pension each month if you start it at age 40, then if you started one at age 20. The numbers are probably incorrect, but you get the idea.

Really2 wrote: »

Yes and no.

Did have a poor private pension which I jacked in (novemeber) as it was virtualy worthless (especialy now).

Now trying to pay off my house in less than 15 years. Should give me 27 years to do my pension. ( I don't see the point of a pension when in debt as mortgage free retirement could be worth a lot of money)

But wife Is in local goverment so will get a good pension.

Although not great my priority is mortgage free first.

Here's an article that discusses which is best, payin off the mortgage or paying into a pension: http://www.thisismoney.co.uk/retirement/article.html?in_article_id=442608&in_page_id=6

MrDT

I'm in my mid twenties and have a SIPP. I only pay in about £100pm at the moment (that includes tax relief) I'm saving a lot more towards a house. I don't really think the fact I pay a little into a pension is a genuine "saving for retirement" strategy at the moment, just something to get the ball rolling dripping a bit in each month sooner rather than later.

Most of my money is earmarked for a house. I can up my pension contributions at a later date. I don't know where I fit in the poll options, I'm not a flat "no", but I don't see £100pm as honestly saving for retirement.

I'm glad I haven't paid much in to be honest, money in the bank is doing nicely, my pension has no doubt lost half it's value in the last 12 months. By drip feeding over 50 years I expect to smooth the gains and losses, though I'm well aware that my drips need to become dollops at some point.

Bit worried that my grandfather, who earned £3 a month from a private pension was apparently denied any form of financial help in his retired years, whereas those with no personal pension get the full state pension. Not sure how much truth is in this or if it's a chinese whisper as relayed through family members. Guess I need to gen-up at some point.

stevetodd

I can't actually vote on this because my pension is/will be rental income from investment property, I decided to stop investing in my pension in the early 90's and take this route instead., but there isn't an option in the poll for this. Although I do have good savings these are going to be reinvested in property for my eventual retirement

Airwolf1

Yep, I have a Company/Personal Pension and/or ISA savings

I have a Government pension scheme.

Cannon_Fodder

Yep, I have a Company/Personal Pension and/or ISA savings

Over 40 years, £100 pm will get to £118K at 4% or £196K at 6%...not too shabby when you know you will have leeway to boost funds in the future, and with a couple of stock market booms to take some of this year's pain away...

I thought 50 years was a bit too long, you'd be in your seventies...but you can rework it here, http://www.thisismoney.co.uk/long-term-savings-calculator.

Max out your cash ISAs alongside...assuming you can find a decent rate.