35 no pension.

snowqueen555

From what I have resesrched, all stakeholders offer the same thing, slight differences in annual charge, and offer different funds etc.

Either way they are poor in comparison to employer backed pension schemes.

dunstonh

. maybe try and save in isa's

Capital is hit harder in the means test than income.

It is probably better to look at what both of you are going to get from the state. A rough guide currently is that if you earn over £9500 you wont get benefits. So, if you are both on track for a basic state pension and may be some SERPS/S2P in there then you will be over that limit anyway. So, you may as well invest towards your retirement.

pKaTz

I have followed your advice and will be seeing an IFA on Monday.

Unfortunately I do not have the option of an employer backed scheme.

bristol_pilot

In the absence of either an employer pension contribution or higher-rate tax relief I see no good reason why the OP should invest in a pension. The only possible reason could be an imminent large increase in income.

Whether the OP should save in ISAs, or indeed at all, is another matter. Maybe a cash ISA as an emergency fund at a level that will not affect benefit entitlements (£16k I think). I don't see how the OP and his wife can afford to save anything substantial and having a family he would probably be better off not working anyway. I certainly don't think the OP should see an IFA (except maybe for a free consultation). IFAs charge hundreds or thousands of pounds for their services and I simply don't think the OPs income and potential saving/investment level would justify the fee.

Increasing income should be the OP's priority in my view, not spending money on advice how to invest money he doesn't have.

pKaTz

thanks

So many of you seem to be agreed that there is a certain Salary level that needs to be reached or attained, inorder to make it worth while having a pension.

I mean, at the moment - I can see that it would be beneficial saving an amount each month and getting the government - (HMRC?) to pay an amount to give me "extra" money. ie. for every £100 put in I would contribute £80, and the Govt £20.

So as long as I have some emerency savings set aside, then a long long terms savings plan (which a pension is) should be ok?

or as bristol_pilot said, if my income goes up, then maybe.

I have a free interview with an IFA, so should I put this point to him -" is it worth me having a pension?"
i think he will just say yes.

dunstonh

I have a free interview with an IFA, so should I put this point to him -" is it worth me having a pension?"
i think he will just say yes.

Well the alternative is no and that means you get less income in retirement.

Which do you want? Low income or higher income?

pKaTz

dunstonh wrote: »

Well the alternative is no and that means you get less income in retirement.

Which do you want? Low income or higher income?

I think everybody would like higher income.
But IF I can max out my cash ISA's and then still afford to pay for a pension, then that will be good.

I think that if my income is so low, that its an either - or .
Pension or Isa.

As a pension can't be touched if I needed the funds, but an ISA can be accessed.

At these times with low interest rates, which at best are around 3%, would it worth investing into a Pension which would have additional fees' and/or charges erroding away the growth.

Botany

One important point to consider is that money in an ISA is considered as capital you have available by the benefit system, whereas the pot of money you accumulate in a pension is not.

Fingers crossed you never have to claim benefits but, if you ever do, remember that if you have money in an ISA the Govt will consider you as having 'capital' , which does not happen if your savings are contained within a pension wrapper.

Botany

pKaTz wrote: »

At these times with low interest rates, which at best are around 3%, would it worth investing into a Pension which would have additional fees' and/or charges erroding away the growth.

If you invest in a Stocks and Shares ISA, the fees and charges could be exactly the same so no difference there.

If you invest in a Cash ISA, what you may save in AMC and broker fees you will lose due to inflation.

Swings and Roundabouts :cool:

pKaTz

Now that you say that ISAa are seen as capital, I can see why a pension would be a better option.
Do you have to tell them, when the time comes that you have £x in an ISA, or would they know anyway as National Insurance Numbers are recorded when ISAs are opened.

ok. so when I go to see him on monday, I may ask about a tracker within a pension. can anyone point me in the right direction to find out more info.?

Thanks