Help with Retirement Planning

inkypinky999

Hi All,

I am 34 and want some advice on retirement planning, I know I am very very very late but its late than never. My current financial condition is

1. Own a house with 25% equity
2. Company pension : My contribution 192£ per month

Value of pension fund pot currently : 30K

3. I have a saving of approx. 20K.

I am feeling that I have not done enough to make my retired life secure/comfortable, before i speak to an IFA what other advice will people here give.

Please help!

atush

What % is that of your salary? you have met the 30K by 35 condition (or is it 35K by 30?). 20K is good as an emergency fund.

What is your tax rate? Can you put kmore into pension? What rate is your mtg?

I might be inclined to start saving outside of pension as well either in S&S Isas or by overpaying your mtg?

dunstonh

You are not too badly off. The guide of £35k by age 35 is not that far off.

Remember that anything you save/invest is going to benefit you one way or the other. So, anything extra you pay is good. Better to have more than less. Cannot really say much more without knowing objectives.

inkypinky999

Hi,

Thanks for your reply.

the main objective is to have good retirement pot and be able to maintain 2 properties (1 current & 1 I am planning to buy @135K)
Be able to save for 2 Kids to give them when they are starting job possibly 40-50K each.

My Salary breakup looks like this

Payments

Base Pay 4,030.83
Childcare Salary Direct -160.00
Critical Illness -13.00
Life Cover -1.35
CONTRACTUAL PAY 3,856.48

Company Car Allow 400.00
Gross Pay : 4,256.48


DEDUCTIONS

Tax 935.47
NI : Basic Rate Contributions 366.89
Retirement Regular AVC 32.25
Retirement Scheme 161.23

Company Share Plan : 135 per month, current value : 11K

Net Pay : £2,615

Unit Linked Investment Plans : 3K/yr ::: Not happy with these as the initial charges are very high, this is 15 yr plan with lockin till 5 yrs...plan started Dec 2009.

Mortgage : 135K, interest only @2.49% ; I am paying 600£ p.m. {Interest is 271£)



"I might be inclined to start saving outside of pension as well either in S&S Isas or by overpaying your mtg? "

Sorry what is S&S?

atush

Stocks and Shares ISAs. Pensions are good (and you have one so good) but they can't be accessed for things like buying a property, giving money to children etc.

why are you buying another, and where will the deposit come from?

inkypinky999

well I am buying another in India..as will be moving in next 3-4 yrs and property prices may increase quite a lot {may go down as well}.

The UK home, I am planning to keep through buy to rent mortgage.

The deposit will come from my savings + some help from parents.

atush

Then you need to increase your savings if you are going to be spending some of the 20K. You need a buffer, plus enough for short term goals.

Having said that, if you aren't keeping your current salary and pension going for more than another 3-4 years you won't have enough for your dreams/plans (esp the giving 50K to each child thing). Our advice was based on your conitnuing to work and earn.

inkypinky999

I will be working in India...aim was to either transfer my pension fund to India if possible or if not then it will remain as it is after i move back.

I will be possible getting 14-15K by mid 2012 from shares for savings and then savings from my salary.

Do people thing I can approach my goals in a more better way please advice.

atush

It will all depend on what your salary is when in india (and how long you stay there) and what your costs of living are.

inkypinky999

At my current skill set the salary will be ~38K p.a., high rate taxes are 30%, you also get tax rebate towards your mortgage and all..

possibly my wife can also get a job...~6-7K p.a.


in terms of living standard I tend to prefer to save more instead of impulse spending/lot of partying/lot of shopping..i look around quite a lot for deals before buying..e.t.c...