pension or what? advice needed

greatbridge

I currently have a works pension with my employer, and at the mo filed up all my isa allowance for the year, and have regular savers accounts with halifax, hsbc and Bradford and Bingley. Have been sticking £60 away a month into a account, that I wont use till i retire, any one got any advice of any better way to invest this £60pm for when I retire? I'm 25yrs old at present, any help would be great

EdInvestor

Are you planning at any point on buying a home?

greatbridge

Yeah, but wouldnt be for a couple of years?

EdInvestor

It's probably not wise to lock up any money in pensions where you can't get it out until you have got the house sorted.Housebuying is almost always more expensive than you expect

If you're not using your stocks and shares mini ISA (4k p.a.) and are really sure you won't be needing this money for at least 5 years, then you could put it there. You lose this allowance if you don't use it every year, whereas you can get the pension tax relief later, there's no annual limit any more. The S&S ISA will offer the same type of investments as a pension.

kenshaz

I would drip feed money into an ISA,based unit trust for long term growth,then you have exposure to the equities market over a long term, which historicaly over a long term, is very secure,and shows rises well above base rates,and because you are paying a regular amount,buying when the market is up and down ,giving an excellent average,riding the fluctuations.The choice is important,look at some performance charts,and look at charges .I have put my Grand -daughters £250 into a unit trust.because it is long term

greatbridge

would the stocks and shares isa be better than a savings account then, which is the best way to choose one, as not really sure about them

kenshaz

greatbridge wrote:

would the stocks and shares isa be better than a savings account then, which is the best way to choose one, as not really sure about them

Yes long term,but you can have both,have a look at https://www.jupiteronline.co.uk
They are who I am with,but please it is yiur choice,do some research,I am sure Which has recommendations

EdInvestor

Start with looking at what kind of funds you might want to invest in: as you're young, "equities" would be the right choice. Of the various types of equity funds, "equity income" funds are probably the lowest risk, as they specialise in the companies that pay the higher dividends, which get paid out whatever happens to the share price.

Check out this link for the top-rated ones:

http://www.citywire.co.uk/Funds/Home.aspx

"Tracker funds" have lower charges, but are higher risk.

After choosing a fund (or two!), you need to choose a discount IFA to open an ISA account with, who will rebate all the charges back to you. Ask in the Savings and Investment forum for help with which one to choose.