Where on earth do we start?

Bumpmakesfour

Hubby and I have just realised,rather late,that we have literally made no provisions for our retirement I'm 35 and hubby is 31,we have 3 kids and another on the way and have absolutely no idea where to start!How do you decide between the plans out there?I'm sorry to sound so naive and uninformed but this really is a totally new thing to us so any advice is really welcome and much appreciated.Thankyou.

Lokolo

First of all start with seeing if your companies you work for have a pension scheme. Whilst waiting for the answer, work out how much you could possibly save.

Assuming you have literally 0 savings for retirement, you should be looking to say around 15-20% of your gross salary. You can try out this pension calculator for a rough idea of how much you could get out depending on how much you put in.

Bumpmakesfour

Thankyou..hubby will ring HR and get company pension details.I'm a carer and currently not working so assume I'll have to set up a seperate pension.
Tx for the link,will have a look now

JoeCrystal

First of all, both of you should be checking with your employers if they offer any pension schemes and more importantly, do they contribute to it. Secondly, it is often suggested that in term of realistic contribution and if you are starting, then you should be paying in half of your ages into a pension scheme. In your case, that could be 17.5% and your husband case, that could be 15.5%. However, I understand that can be unrealistic since you got lot of commitments. Do you roughly have any idea on what amount of contribution you are willing to put in?

Cheers

Joe

EDIT: Since I wrote this before I came across Bumpmakesfour's second post, I would also like to say that you are only allow to contribute up to £2,880 net (which increased to £3,600 thanks to tax relief) per year into a pension scheme (if you are not employed. Of course, if you are employed, you can contribute up to maximum of your earnings in a year).

kidmugsy

Saving for old age needn't involve a pension. Pensions can be pretty good if either (i) you thereby avoid income tax at the higher rate, or (ii) an employer will make a contribution.

Otherwise, consider saving in ISAs or even ns&i Index-Linked Savings Certificates.

Bumpmakesfour

Thankyou Have to say we haven't even thought of how much we'd need to invest to get a decent return..and ISAs etc are totally new to us too!Gosh I feel so daft.We don't even have a will Neither of our parents have pensions etc outside the state ones,it's just not something we've thought about.So have been trawling this board looking for ideas.Appreciate the advice guys,thankyou x

atush

First thing will be: spending in your case. Examine it in detail (and file an SOA in the debt or budget baords to examine where and how you can save on your fixed and other costs- this can save you LOADS so do it).

Second, and I really really want you to take this in the best light as I am a mother of 3 and am only wishing you the best.

You are in your 30's and haven't started saving. Only one working, you are having your 4th baby and havne't even started planning. So first thing, no more babies (until at least you are working and saving). I know this is hard as things happen ( I had twins late when we were looking and saving for baby 2 and got 3 and were hit hard) but you need to take a bit of a step back and be responsible to both you and your kids. The cost of bringing up kiids and the cost of advanced education is now hugely expensive- we are talking 50-80K per child just for Uni in the future. And even if they don't get that far there are needs they will have such as doing 6th form or apprenticeships- cost of moving out-flat deposits etc.

And then your pension as you too will need somehting to live on when the 4+ have (hopefully) flown the nest.

you have made a great start in thinking of this now (some won't til after 50) so don't be too downhearted.

Step 1- review and reduce spending where possible

Step 2- SAVE

Initially 3-6 months spending in cash (in ISAs if you as a family pay any tax) at the best rate you can get if not (many are online only). After this (or at the same time) does you husband/partern pay into a pension? If not, do his employers ofer one? Do they pay into it? IF so, make sure you pay in enough to get the maximum contributions frm his employer. If you hven't joined, join. Any pension savings may not be accessed til age 55 or over, but are arenot taken into acct if you ever need to go onto benefoits for any reason. Other savings can be taken into acct.

After this, for the best return over period of 7-10 years or more look at equities (ie stocks, shares, investment tusts and fund). Thes can fall (during the market as at present) but do work out better than cash over more than 10 years. Andif you invest monthly, rather than one big amt at a time) you do work around the markets as when prices afre falling you get more shares form your money than when they are rising and it usually comes out in yoru fabour at the end.

kidmugsy

Dear God, get wills!!!!!!!!

Bigsmak

kidmugsy wrote: »

Dear God, get wills!!!!!!!!

And make sure you have some kind of Life Cover in place and also something in place should your husband find himself unable to work.

sleepless_saver

kidmugsy wrote: »

Dear God, get wills!!!!!!!!

Yes, please do. Apart from anything else, you need wills to specify the guardian(s) for your children in case of both your deaths - unlikely I know but it does happen.

Bumpmakesfour

Thanks for the advice..all totally taken on board.Hubbys pension pack has arrived and it's actually quite confusing!We are planning a night sorting finances and future out once kids are settled later.
Re the Will...I've spoken to at least 5 other friends..all with kids and not one will between them.I don't even know where to start but now realise it HAS to be a priority!:o