Further investment for my retirement

Toddy

Hi,

I am 37 and have been in my final salary pension for 9 years. Is there anything else I can invest in now to bump up my retirement funds or that may help me to retire sooner. What other schemes/investments are there that are worthwhile?

Many thanks,

Toddy

EdInvestor

Numerous.

On the pension front, you can sometimes buy "added years" in your company scheme. The old AVCs are now outmoded, but you can can invest in another personal pension or SIPP.

Make sure your NI record is up to date for the 2 state pensions, they're very good value.

You don't have to save in a pension tax wrapper, indeed it's much more flexible if you don't once you've got one company sheme under way.

Use your annual 7k ISA allowance to invest in funds or shares ( try the Savings board for help.)

You could consider buying a home if you don't have one, or an investment or other property.Generating income and releasing capital from property is now a mainstream way of raising retirement money.

dunstonh

ISAs, Unit Trusts/OEICS, Investment Trusts, Investment Bonds (onshore & offshore), individual shares....

The lump sum options are pretty endless but usually you would start with an equity ISA before moving onto the others.

They are worthwhile, as it anything you save, because only you will benefit from saving more.

and releasing capital from property is now a mainstream way of raising retirement money.

no it isnt and its not something to plan for. Its a last resort action. Many may be going through it but it doesnt make it desirable.

EdInvestor

no it isnt and its not something to plan for. Its a last resort action. Many may be going through it but it doesnt make it desirable.

This is your personal point of view.Many others disagree.They think property is more reliable than conventional pensions as a long term investment.

They could well be right. There aren't very many low-risk geared tax free investments around, are there?

dunstonh

This is your personal point of view.Many others disagree.They think property is more reliable than conventional pensions as a long term investment.

Yes it is my personal point of view and reflects the general industry position that releasing equity in your home is a higher risk transaction that should only really be considered once other alternatives have been reviewed. It is not something that you should plan for.

They could well be right. There aren't very many low-risk geared tax free investments around, are there?

You spend your life paying a mortgage that is 2-3 times the value of the property. You spend money maintaining it and then you get to retirement and give it all up. Its hardly efficient.