How much do I save?

Sagar_Fuzz

Hi there, I'm new, and would appreciate some clarification on Martin's Pension Article.

I read Martin's article, and have been paying into my pension since I was 22 (but very little). I have joined a new company who will pay in 8% if I pay over 2% of my Net salary. Do I halve the age I started and pay in 11%, or take into account what my company is paying and pay the remaining 3%?

I have a horrible feeling I know the answer...
Thanks for your help!
Sagar

EdInvestor

I should just pay in the 3% if I were you, and save anything else you can manage initially in a cash ISA then in an investment one.

Do you have a mortgage?

Sagar_Fuzz

Hi there,
Thanks for replying, I am surprised at the answer though! I do not have a mortgage - I am struggling to come up with a deposit, which i save in a mini ISA. I am also paying back a student loan.

Does this make a difference?

Sagar

dunstonh

Even more reason to use the cash ISA after you have put your 2% in to the employer scheme.

10% into the pension is fine for now and you can concentrate more on your personal savings to get that deposit.

Sagar_Fuzz

Thanks, I'll do that!