38 and worried

EdInvestor

Hi the fellow

Do you have any savings at all at present?

jamesd

thefellow, it is too soon to decide on the pension bit. You need the full pension figures for you and your wife from the state and the figure for her from the local authority scheme first.

I think that it is unlikely that you will be better off without saving for retirement but it is possible to have a low enough total pension that the top-ups for having a low pension income make it better to have the money in things that don't count as savings (like property - it's why EdInvestor thought of that). But first the pension figures are needed, so it's possible to work out whether you're likely to be near the point at which those benefits might apply.

An ISA is the place to put the money if you don't go for the pension. The cash type is OK as a temporary approach while sorting out what else to do. Longer term the stocks and shares type is the one to go for if a pension doesn't look like the best option.

cloud_dog

thefellow wrote:

should i just put the £125 away?do the banks do a special account for what i want?

Affraid I cant add much to the pensions aspect but trying to rush a decision on longer term financial arrangements is not a good idea.

For the immediate term why not open a top rate paying cash ISA (or top rate savings account if ISA limit used up) and start depositing your £125pm into that. In the mean time you can continue investigations into the best longer term solution, taking onboard all the other considerations, i.e. wife's pension, etc, etc.

Depending on what you decide you can always close the ISA / savings account and put the money into the longer term vehicle.

Please do not go to a bank / tied financial service - not a good idea.

cloud_dog