Aged 35 - I don't have a pension!

Hi,

I'm 35 years old but I don't currently have any type of savings for retirement. My other half is a teacher so already has her pension arranged albeit controversially!

Anyway, I'm not sure what the best thing to do is. Should I be getting a pension, ISA etc?!?

I also don't know much about the different savings types so all help is appreciated!

thanks
nigel
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Comments

  • rockitup
    rockitup Posts: 677 Forumite
    Firstly there is a pensions board on this forum, may be better posting there or maybe a moderator will move the post for you.

    A couple of questions you will need to answer though so forum members can point you in right direction

    Will your employer also make contributions? This can help make pensions more attractive than ISA's etc (free money)

    If you invested regularly in an ISA to reduce charges and control your own investments, do you think you could keep your mitts off the money till it is time to retire? ISA's can be partially or fully cashed in at any time... but they have far more flexibility than pensions

    Any idea what age you will aim to retire?

    Just a starting point so as to help others give some hints
  • dunstonh
    dunstonh Posts: 115,904
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    Aged 35 - I don't have a pension!

    oh dear. Leaving it a bit late but not terminal yet. It will be harder work for you though. There is a rough guide that you should aim to have £35,000 in your pension by age 35. (doesnt mean you have to. It is one of those guide figures to give you a rough idea of the realistic amounts involved).
    Anyway, I'm not sure what the best thing to do is. Should I be getting a pension, ISA etc?!?

    There is a pension vs ISA sticky in the pensions forum. You should take a look at that if you want to see the pros and cons of each.

    Rule of thumb is that if the employer pays into a scheme then take it as it is free money. Nothing beats free money.
    I also don't know much about the different savings types so all help is appreciated!

    They are not savings. They are investments. Savings would actually more likely carry greater risk than investments for a 30-80 year term. It is not really a good idea to use savings for such long term planning.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • rockitup
    rockitup Posts: 677 Forumite
    It can also be beneficial to divert some of your retirement savings to both a pension and an ISA. This too will give you some flexibility.

    SIPP's are also a good way to save on charges and decide where to invest your pension contributions.
  • nonnatus
    nonnatus Posts: 1,458 Forumite
    I'm 41 and have nothing planned out yet either.

    WAY too late and far too expensive to start thinking about it now, so I have a Piggy Bank for a swift Dignitas exit just in case my Lotto numbers don't come up in the next 20 years... :rotfl:
  • nigpay1
    nigpay1 Posts: 41
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    see..it's already sounding confusing to me as a late newcomer to investments!

    First things first, my employer will not be making payments.

    I do think I will be able to keep my hands off the money as I realise I need to start making plans for the long term.

    With regards to age of retirement. Again it's something I haven't really thought of!

    Rockitup, you're advise would be to start saving into an ISA and startup a pension of some sort aswell?! Would this be the general census of opinion?
    thanks
  • dunstonh
    dunstonh Posts: 115,904
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    Once you get into your 40s any new money you pay then doesnt have the same impact that money paid in your 20s or 30s have. Its almost £1 for £1 in your 40s. i.e. if you pay £100pm you will get back £100pm in real terms. So, starting as early as you can is best.
    With regards to age of retirement. Again it's something I haven't really thought of!

    Realistically you are going to have to retire at state pension age or later and quite possibly have a part time job in retirement.
    Rockitup, you're advise would be to start saving into an ISA and startup a pension of some sort aswell?! Would this be the general census of opinion?

    We dont know your circumstances and personality to make any judgement like that. Pensions tie the money up until retirement (hence why they are called pensions). However, you get tax relief and tax free growth to compensate. Some people need to be forced not to be able to access the money. Others can trust themselves financially not to blow the pot on some random purchase. So, they may prefer to use ISAs for some of the money. You say you that you can trust yourself. However, you are 35 with no retirement planning. That doesnt indicate good financial planning. So, can you really trust yourself? You need to be honest with yourself.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • nigpay1
    nigpay1 Posts: 41
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    I can definately say I can save the money without dibbing into it.
    I saved up £10k over a relatively short period of time to use towards a house but I'm getting married in August so had to use that. I'm confident I can save the money.

    Obviously I need to wait until after the wedding but it's more the question of how much I should be saving and where the best place to invest is, it's this i'm worried about, not the saving.

    thanks
    nigel
  • rockitup
    rockitup Posts: 677 Forumite
    nigpay1 wrote: »

    Rockitup, you're advise would be to start saving into an ISA and startup a pension of some sort aswell?! Would this be the general census of opinion?
    thanks

    As dunstonh says, it depends on your circumstances. As your employer is not paying in to the proposed pension I personally would be moving some of the money in to an Equity ISA and as you start nearing retirement (last few years of work) then start reducing your exposure to stock market and into cash or bonds.

    This is the route I took and I was 31 when I started saving for a pension (did not have ISA's then but did start using Investment Trust savings plans, the ISA is just a wrapper to avoid paying out CGT or extra tax on dividends). It did end up suiting me as I retired much earlier than expected and I had the flexibility to use some income from my investments. It may not suit you though, but really whatever choices you make you should really get started as soon as possible.
  • sorcerer
    sorcerer Posts: 878 Forumite
    I started at 37, but I am working hard to increase the amount, I have work pension, a SIPP and a Stock and Shares ISA. Between them I put £1000 a month away, so I am trying to play catchup.
  • nigpay1
    nigpay1 Posts: 41
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    sorcerer, where did you even start to work out what all the investments meant and the best places to invest.

    it all seems overwhelming to me!!
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