42 yr old in a pension panic

JOLLYJO_3

are there pensions that will guarantee your money back?

Aegis

JOLLYJO wrote: »

are there pensions that will guarantee your money back?

If you were to find some structured products within a SIPP you could feasibly guarantee your capital amount as a bare minimum. Probably limits your growth potential too much though...

Your other option would be cash, but that's even worse.

EdInvestor

Imposter67 wrote: »

I have started some ISA savings in the last 2 years but can anyone recommend a pathway that offers a way out of this "head in the sand" situation.

Any recommended pension schemes that are not too risky and even better, ethical, would be appreciated.

or should I go down the ISA savings route in view of fact that the limits are being raised next year?

First of all check out your entitlement to the 2 state pensions

Get a forecast here: https://www.thepensionservice.gov.uk

Bear in mind that you will have a tax allowance of around 10k when you retire, so pension income under that will be tax free, but all the rest will be taxable.

This may suggest that the ISA route is more optimal as income from ISAs is tax free regardless of the amount.

Imposter67

Appreciate everyone's comments and especially EdInvestor's last message. I am genuinely confused by pensions and my comment on the low returns is down the evidence of last 2 years in which everyone's pension pot seems to have diminished. I have no problem in putting away money (currently 25% of my salary is saved) but just want to feel ok that it will actually grow and not be eaten up by the vagaries of the market.

dunstonh

my comment on the low returns is down the evidence of last 2 years in which everyone's pension pot seems to have diminished.

Although the 7 years prior to that so significant gains. Just part of the natural zig zag you get with investments.

Funnily enough, no-one seems to complain when they get a 15% gain

just want to feel ok that it will actually grow and not be eaten up by the vagaries of the market.

If you dont have the risk profile to accept those sorts of potential losses then dont build your portfolio to that level of risk. However, dont make the mistake of thinking that short term losses are a bad thing when you are paying in monthly and have decades to go. They can be a good thing.