Planning for retirement.............

[Deleted User]

Ok so I am 28 for a limited time like a week today I am going to be 29 eeeeeeekkkkkkkk!!!!!!!!!

I have always worked but I have never contributed to a pension I dont think?!?!? How could I go about finding out?

I was highly unorganised havent got payslips or p60's or anything like that to look back to.

I am still in debt until 1st December 2012 this will be all cleared by then - at this point I am going to start contributing the 10% to my work place pension but as I will be nearly 30 by then should I contribute 15%

Also I would like to start saving about £150 minimum a month aswell so that I have money in the bank for when I retire but then I have read that this money in the bank is no good as it loses value - OMG this is all so confusing but I need to start doing something about it otherwise I'm gonna be a poor starving bored wee OAP!!

Oh I dont own my home or car - I currently rent & I have no intention to buy my own home.

I earn about 18k at the moment.

Any advice would be fab

Dxxx

JoeCrystal

Well, first of all, you really need to make sure that you got enough savings to last you bit a while in case of losing your job or something like that. After all, you really do not want to save into pension only to find out that you suddenly got crisis on your hand and that might force you back into debt.

Nevertheless, I wonder if your employer contribute toward your work place pension?

Cheers

Joe

[Deleted User]

Yeah that would be a good idea is it something like 6 months wages as a back up??

My employer will match contributions upto 10%

Dxxxx

xylophone

Start contributing to your pension as soon as you can.
Save your £150 a month into a cash ISA for the first two or three years to build up a cash nest egg - then you might consider the stocks and shares ISA as well. You'll probably be earning more then too.

JoeCrystal

Deleted_User wrote: »

Yeah that would be a good idea is it something like 6 months wages as a back up??

My employer will match contributions upto 10%

Dxxxx

Hmm... that change it slightly. It is sometime a good idea to start your pension as soon as possible. Especially when it is such good deal for Defined Contribution scheme. After all, what cost you £150 gross per month will results in £300 gross per month. This will help you massively in playing catch up.

To be frank, I am tore between building up emergency fund in Cash ISA or starting pension as soon as possible. You never know when they might change or remove employer's contribution.

But ultimately, it is up to you.

Cheers

Joe

jamesd

Your employer will match contributions up to 10%. That's 100% interest rate added as soon as you pay in the money. Are your debts really costing you over 100% interest rate? Very unlikely so you'll probably be better off starting the pension contributions at 10% immediately and letting it take a bit longer to get rid of the debts.

For money over the 10% once the debts are done with consider starting a stocks and shares ISA and a cash ISA. Cash as first choice for emergency fund, S&S for longer term money that's also available within a few weeks if truly needed.

Once you've six months or more of all of your living costs in the cash ISA and the same again at least in the S&S ISA you could consider increasing the pension contributions. But perhaps you'd like a larger emergency fund and the chance of buying a property later so may prefer not to pay in more than your employer will match right now.

Is your employer's pension scheme a salary sacrifice one? Sometimes called smart pensions or similar. Those add an extra 12% or more in tax relief and are a particularly good pension deal.

[Deleted User]

Yeah I'm pretty sure the pension comes out before tax if thats what you mean.

I am going to contact them then & get this started ASAP!!!

Thanks for the advice

Dxxx