Pensions... Help?

jj_5

Hi guys just having a few second thoughts on this.

Would I not be best just clearing my debt and then investing spare cash in an ISA just now?

I have about 3k worth of debt on a bank loan (Sorry i know i said student loan earlier) and the APR is about 17%

Also, if i got to say 30 and I'd built up some ISA savings, could I transfer them to a pension fund? and would this be advisable...

I think I could clear this loan by the end of the year but don't want to be making any silly investing decisions.:beer:

atush

Noi, it would not be worth your while, as the employers contribs will be building up. So I would contribute, at least the amt you were originally considering. Then may in more once your debt is paid off.


Isas are a fine savings idea, for cash to build an emergency lump sum and S&S isas after. But the same things can be saved into ISAs as can be saved into pensions. Plus pensions get 2 things ISAs dont- tax relief, and employers 'free (to you)' contributions. SO a pension invested in the same things as an isa would be worth immediately MORE money.

Now, as to your debt, you are on an above average salary. And may be wasting money that you don't realise.

How long has it been since you comparison shopped your utilities, phone contracts, insurance etc? Do you waste money on fancy coffees, magazine subscriptions, fast food, takeawats, ready meals?

Go to the Debt free board and post an SOA and ask for help in trimming your spends/incrasing your income. You could be debt free in no time.