Savings advise for retirement

Robie

Hi

Firstly, I am 50 and need some advice on savings plan. I plan to work for next 10 years (hopefully not more).

I have company pension (about 2 years old) scheme run by Barclays where I am putting in roughly 20% of my salary. Since I started quiet late on the pension plan (new to company), I thought I would be better off putting in a large amount each month, hoping that would cover me during my retirement. I don't have any another pension plan (I know, silly me but it is too late to think about what ifs). The questions are:

1. Is it good idea to put so much in the pension pot?
2. Should I reduce the amount in pension pot and move some of that money into S&S ISAs?
3. Should I increase the amount into the pension pot?
4. Should I start another pension plan, if so what would it give me in 10 years?
5. Should I invest some of the money elsewhere (not sure where!)?

Thanks in anticipation of good adivce,

Robie

opinions4u

Do you work for Barclays, or simply invest via them?

Does your employer make any contribtuions on top of yours?

If nobody else is contributing, see an IFA. Track one down at www.unbiased.co.uk.

The plan to pile in as much as possible, while late, appears sensible. But there may be other options too.

Robie

opinions4u wrote: »

Do you work for Barclays, or simply invest via them?

Does your employer make any contribtuions on top of yours?

If nobody else is contributing, see an IFA. Track one down at www.unbiased.co.uk.

The plan to pile in as much as possible, while late, appears sensible. But there may be other options too.

Thanks for quick response.

No, I don't work for Barclays. The company are using them to run the pension and pay in £75 per month on top of my contribution.

Basically, I am trying to maximize my returns in the next 10 years. So, if the money needs to be divided between different options then so be it.

dunstonh

1. Is it good idea to put so much in the pension pot?

If it matches your objectives and tax position (both now and future) then yes. If it doesnt then no.

2. Should I reduce the amount in pension pot and move some of that money into S&S ISAs?

it depends on your objectives and tax position now and future.

3. Should I increase the amount into the pension pot?

If it is the best thing to do then yes. If not then no.

4. Should I start another pension plan, if so what would it give me in 10 years?

If the alternative pension can offer better terms than what you have then yes. If not then no.

5. Should I invest some of the money elsewhere (not sure where!)?

If that is the best option then yes. if not, then no.

Ok, I think you got the hint there What you are asking requires specific information about your current financial position and your future financial position. It will also be impacted on if you are married or have a partner.

Pensions and ISAs are just tax wrappers. Containers for investments that have certain tax advantages and maturity methods. You can hold the same investments unwrapped, in an ISA, in a pension or investment bond (another tax wrapper). The rates of return will be identical. It will just be the tax position that is different. So, when planning, it is important to make sure you use the right tax wrappers to meet your circumstances. For some people that may be mostly pensions whilst others could be mostly ISAs.

Thanks in anticipation of good adivce,

You wont get good advice on the internet. Technically, you wont get any advice. Just information. What you ask is fine tuning dependent on personal situation. Options 1 to 5 are all valid and all will benefit you. However, what you benefit the most is what we cant tell you as that requires information we dont have.

bendix

The only thing I would add is that 20% contribution doesn't seem to be anywhere near enough for a 50 year to be contributing, particularly as you only started it two years ago and if you're only planning on working for ten more years.

No offence, but it doesn't sound like you are a high-earner (deduced by your comment that your employer pays in £75 a month). My guess is that you're only contributing a total of a couple of hundred a month.

Robie

dunstonh wrote: »

If it matches your objectives and tax position (both now and future) then yes. If it doesnt then no.


it depends on your objectives and tax position now and future.



If it is the best thing to do then yes. If not then no.



If the alternative pension can offer better terms than what you have then yes. If not then no.



If that is the best option then yes. if not, then no.

Ok, I think you got the hint there What you are asking requires specific information about your current financial position and your future financial position. It will also be impacted on if you are married or have a partner.

Pensions and ISAs are just tax wrappers. Containers for investments that have certain tax advantages and maturity methods. You can hold the same investments unwrapped, in an ISA, in a pension or investment bond (another tax wrapper). The rates of return will be identical. It will just be the tax position that is different. So, when planning, it is important to make sure you use the right tax wrappers to meet your circumstances. For some people that may be mostly pensions whilst others could be mostly ISAs.



You wont get good advice on the internet. Technically, you wont get any advice. Just information. What you ask is fine tuning dependent on personal situation. Options 1 to 5 are all valid and all will benefit you. However, what you benefit the most is what we cant tell you as that requires information we dont have.

Thanks Dunston for the in-depth reply/information .

I think what you are suggesting is that I see one of you, i.e. an IFA.

Robie

bendix wrote: »

The only thing I would add is that 20% contribution doesn't seem to be anywhere near enough for a 50 year to be contributing, particularly as you only started it two years ago and if you're only planning on working for ten more years.

No offence, but it doesn't sound like you are a high-earner (deduced by your comment that your employer pays in £75 a month). My guess is that you're only contributing a total of a couple of hundred a month.

Interesting. Actually, I am earning £35K a year (which may be on the low end of the scale here). I contribute roughly £425 a month and my employer contributes £75 making an even £500 in pension pot a month.

Now, is that enough for a pension contribution?

dunstonh

I think what you are suggesting is that I see one of you, i.e. an IFA.

Financial services is no different to anything else. If you know what you are doing then you can DIY. However, if you dont know what you are doing you can still DIY and make a good job or make a pigs ear of it. Or you can get someone to do it for you.

I am not going to suggest you use an IFA or DIY as that is a personal choice. However, the questions you asked are quite specific and have different answers depending on your circumstances. Either you need to take those into account or risk making the wrong choice.

For example, how close will your final income be to the age allowance reduction figure?
If you have a spouse/partner, what is their provision? Will you be using their personal allowances up in retirement? Will they or you be dependent on each other? What is your risk profile and how would you invest? How will that impact on the likely average return both now and in retirement? What capital expenditure are you likely to have in retirement as well as income?

If you can answer those sort of things and decide which the best options are based on those answers and willing to put the time into it then you dont need an IFA. If you are struggling with that or cant invest the time to sort it then you do.