1st ever post! Pensions....

james81

Hello all,

My first time here, although I've been reading for a while!

anyway, I'm looking for some advice please. I'm 28 years old and concerned that I don't have a pension yet!

Would it be wise to start a private one or to save in long term investments. I have used my isa allowance saving for house deposit.

I work full time and paid my national insurance since I was 18.

Many thanks,

James

mr_fishbulb

Does your work offer any pension scheme?

james81

Hi,

No I'm afraid they dont...

Any advice?

Harry_Powell

You're in the same boat as me, no pension and saving up to buy a house. You just need to look at your priorities and go with it. Mine is to continue saving for a house, then once I've been in there for a year or so, switch to pouring money into a pension. You can't do everything at once, so just do what you think is right.

dunstonh

Mine is to continue saving for a house, then once I've been in there for a year or so, switch to pouring money into a pension.

Just be wary. Lots of people think that but then find more excuses to put it off and thirty years later realise that they have left it too late.

The first years of moving into a house are usually the most expensive.

james81

Thanks guys but where shall I put my money?

adrian_bond

hi james,

I was in very much your situation last year, although i havent been able to put my method into practise becasue my job is very unsecure at the moment. however, first thing if i were you i would see an IFA with all your detials ready to hand. I.e. monthly earnings, outgoings, savings, projected earnings etc and a detailed list of your budget (use martins budget planner). Also, get a state pension forecast from the pensions people (just google it and ring them) and they will tell you how much you have paid and when you can retire etc. (probably be 67).

then you can prioritise your outgoings. once you are happy with everything you should choose whatever pension provisions you want to make with your IFA (please make sure you see an INDIPENDANT IFA like DunstonH (see earlier in this thread) and not a tied agent which will be the one you bank will provide you wish. The difference is astounding and being lazy will cost you massivley in the long run!

Personally, im in almost identical situation to you (no pension provision and company doesnt contribute squat except excuses) although im 27 and are already a home owner, but my job security is poor so cant commit to starting a pension fund until it becomes more secure (hopefully 2010?). At the moment im saving as much as i can in my ISA each month to effectivly give me a leg up with my pension when i start it, and in the meantime provide a safety barrier incase i get made redundant.

my plan therefore when i start is to stick approx £100 a month into stock market pension product, £100 a month into my ISA, and £100 a month into overpaying my mortgage. This means that i wont ever see massive pots in individual investment areas, but collectivley i should be very well off by the time i want to retire. hope this all helps you make up your mind tho. Its never too late to start providing for your future although the earlier you start, the bigger the pot!

good luck.

EdInvestor

Consider using the other half of your ISA - the stocks and shares part - for long term savings.Same investment options as a pension, also tax free, but much more flexible.

Money in an ISA can always be converted into a pension, but you can't do it the other way round.

james81

EdInvestor wrote: »

Consider using the other half of your ISA - the stocks and shares part - for long term savings.Same investment options as a pension, also tax free, but much more flexible.

Money in an ISA can always be converted into a pension, but you can't do it the other way round.

I didn´t know I could use my ISA as part stocks and shares? How do I go about that???

james81

adrian_bond wrote: »

hi james,

I was in very much your situation last year, although i havent been able to put my method into practise becasue my job is very unsecure at the moment. however, first thing if i were you i would see an IFA with all your detials ready to hand. I.e. monthly earnings, outgoings, savings, projected earnings etc and a detailed list of your budget (use martins budget planner). Also, get a state pension forecast from the pensions people (just google it and ring them) and they will tell you how much you have paid and when you can retire etc. (probably be 67).

then you can prioritise your outgoings. once you are happy with everything you should choose whatever pension provisions you want to make with your IFA (please make sure you see an INDIPENDANT IFA like DunstonH (see earlier in this thread) and not a tied agent which will be the one you bank will provide you wish. The difference is astounding and being lazy will cost you massivley in the long run!

Personally, im in almost identical situation to you (no pension provision and company doesnt contribute squat except excuses) although im 27 and are already a home owner, but my job security is poor so cant commit to starting a pension fund until it becomes more secure (hopefully 2010?). At the moment im saving as much as i can in my ISA each month to effectivly give me a leg up with my pension when i start it, and in the meantime provide a safety barrier incase i get made redundant.

my plan therefore when i start is to stick approx £100 a month into stock market pension product, £100 a month into my ISA, and £100 a month into overpaying my mortgage. This means that i wont ever see massive pots in individual investment areas, but collectivley i should be very well off by the time i want to retire. hope this all helps you make up your mind tho. Its never too late to start providing for your future although the earlier you start, the bigger the pot!

good luck.

That´s some great advice, thankyou very much. I think I will need to find an Independant Finantial Advisor. Are they expensive?

EdInvestor

james81 wrote: »

I didn´t know I could use my ISA as part stocks and shares? How do I go about that???

The best way IMHO is to open a 'self select ISA' with a discount broker such as https://www.h-l.co.uk which rebates part of the charges.

That then allows you to choose from a wide range of investments - unit trusts, investment trusts and ETFs, shares, bonds, property. You aren't limited to just the one fund management company.