We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Pension - is it really worth it?
Options

reedi
Posts: 65 Forumite
Hi all,
Im self-employed and currently pay £30 a month into a private pension. Now I know full well that this is nowhere near enough a month to pay in but the trouble is I can't really afford much more as I have other priorities like my VAT and tax to cover whenever clients pay me (eventually).
Therefore Im wondering weather it would be better to invest that money into an ISA of some sort instead because quite frankly I'm not impressed with the governments contributions (they clearly have Moats to clean and mucky videos to watch first) and I'd rather not be having to work in McDonalds when I retire.
So good idea or bad, or are there other options?
Thanks
Andy
Im self-employed and currently pay £30 a month into a private pension. Now I know full well that this is nowhere near enough a month to pay in but the trouble is I can't really afford much more as I have other priorities like my VAT and tax to cover whenever clients pay me (eventually).
Therefore Im wondering weather it would be better to invest that money into an ISA of some sort instead because quite frankly I'm not impressed with the governments contributions (they clearly have Moats to clean and mucky videos to watch first) and I'd rather not be having to work in McDonalds when I retire.
So good idea or bad, or are there other options?
Thanks
Andy
Titch 

0
Comments
-
Im self-employed and currently pay £30 a month into a private pension. Now I know full well that this is nowhere near enough a month to pay in but the trouble is I can't really afford much more as I have other priorities like my VAT and tax to cover whenever clients pay me (eventually).
1 - you are self employed which means you dont get the full state pensions. Just the basic which is £5000 a year.
2 - £30pm is almost pointless unless you are aged 20.Therefore Im wondering weather it would be better to invest that money into an ISA of some sort instead because quite frankly I'm not impressed with the governments contributions (they clearly have Moats to clean and mucky videos to watch first) and I'd rather not be having to work in McDonalds when I retire.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 -
It might be worth saving into an ISA and wait for the inevitable income tax rises before using that money to invest in a pension & get more tax relief.
Alternatively, if you think you might become a higher rate taxpayer at a later date, you could save into an ISA and wait until you are on 40% tax before investing in a pension. [Assuming 40% tax relief on pensions is retained for 40% taxpayers - but MPs benefit, so there's a chance it will.]
0 -
I think you should get an Indian takeaway once a month and enjoy life now.
Alternatively, plan for your retirement by reprioritising your expenses to make a meaningful monthly contribution into a pension plan.
I do like baby_boomer's suggestion though.
NotlobNotlob0 -
Thanks....think I might aswell go for the Indian idea...not gonna get much back after retirement and would rather not be taxed on it so those thieving MP's get their duck houses.
What about a Tax free savings account?Titch0 -
This forum is starting to depress me.
Reedi . . . . you really need to do some serious reading on the subject, and get your nose out of the Daily Mail / Daily Star.
If you don't save for your retirement, how do you expect to live in the future? It's this simple - you HAVE to take a new look at your expenses each month and prioritise better. It's a cop-out to say you can't afford it - you simply HAVE to afford it.
Otherwise you are guaranteeing a very very miserable future. If a bloody indian meal a month now sounds better to you than a retirement with dignity in the future, then - frankly - there's no helping you.0 -
Calm down chief...I was kidding.Titch0
-
think I might aswell go for the Indian idea...not gonna get much back after retirement and would rather not be taxed on it so those thieving MP's get their duck houses.
With your pension income from the state being just £4900 a year and even with pension credit taking you up to £7000, its fair to say that you wont have enough income in retirement to worry about tax.What about a Tax free savings account?
What about it? That isnt going to make a slightest bit of difference unless you start putting aside more money.
Enjoy the Indian while you can because you wont be able to afford it when you retire.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 -
I've said it before, so Ill say it again....
FORGET THE INDIAN...I WAS JOKING!! (sarcasm not required)
I'll investigate my options then, wonder if I become a limited company would the full state pension apply?
Technically then I become an employee.
Would love to pay more in but business isn't the best, the cost of living is still high and spare cash for saving/investment is few and far between.Titch0 -
I'll investigate my options then, wonder if I become a limited company would the full state pension apply?
If you pay enough NI you would start to build up some years qualification. However, you are never going to get full entitlement.
However, if your earnings are low, you may well find the cost of setting up and being a limited company mean you pay more now. Thats one for your accountant to discuss with you as they will have your figures and know what is best for you.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
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards