Pension, Debt, Savings or Mortgage?

CharlieRabbit01

I've just heard that the government are introducing and Auto opt in for pension contributions.

I'm currently not in the pension scheme, I have a small amount of debt, no savings (as paying off debt first) and don't have a mortgage.

If I join the pension scheme I will have to pay £92 a month (don't know what my employer puts in) that £92 is my bit of spare cash which I use to pay off the debt so I'm not just making minimum payments every month.

My question is. Is a pension worth it? I know the basics of save now for when your older and start asap but I want to enjoy life now and also pay off my debt and maybe get a mortgage.

Currently I'm on track to pay of my debt in full by December next year, if I deduct my pension contribution it'll take me over 4 years.

Should I join the pension scheme now or wait till I've paid the debt?

My other question is if I want till after the debt is cleared would it be better to join the pension scheme or start saving for a mortgage?

I can really only afford to do one or the other.
:think:

jem16

CharlieRabbit01 wrote: »

Should I join the pension scheme now or wait till I've paid the debt?

What kind of pension scheme is it - final salary or money purchase? If money purchase does your employer contribute?

My other question is if I want till after the debt is cleared would it be better to join the pension scheme or start saving for a mortgage?

So first of all it's the debt, then it's the mortgage, then it's a wedding, then it's children etc, etc.

Get the picture?

dunstonh

So first of all it's the debt, then it's the mortgage, then it's a wedding, then it's children etc, etc.

... and then you are in your 50s with little time left to make any meaningful difference and needing to pay £1000s of pounds per month.

CharlieRabbit01

jem16 wrote: »

What kind of pension scheme is it - final salary or money purchase? If money purchase does your employer contribute?



So first of all it's the debt, then it's the mortgage, then it's a wedding, then it's children etc, etc.

Get the picture?

I've no idea what kind it is, I know its an LGPS pension though if that helps?

If that's the order I'm never going to have a pension.:eek:

CharlieRabbit01

dunstonh wrote: »

... and then you are in your 50s with little time left to make any meaningful difference and needing to pay £1000s of pounds per month.

I'll be lucky if I have a mortgage by 50! given the amount of deposit needed and the rate I can save.

JoeCrystal

CharlieRabbit01 wrote: »

I've no idea what kind it is, I know its an LGPS pension though if that helps?

If that's the order I'm never going to have a pension.:eek:

*stunned* And you decided to opt out willingly. If I was you, I would join in straight away. Of all pension schemes we got in this country, LGPS is one of the best and are like gold dust.

I really hope you did not opt out for long since it could cost you much more in long run as loss of index-linked guaranteed pension when you retire.

Cheers

Joe

jem16

CharlieRabbit01 wrote: »

I've no idea what kind it is, I know its an LGPS pension though if that helps?

LGPS is a final salary pension and you should join it immediately!

How long have you been eligible for this and not joined?

If that's the order I'm never going to have a pension

It's not the order. You should be saving for all of them, not just one of them.

CharlieRabbit01

jem16 wrote: »

LGPS is a final salary pension and you should join it immediately!

How long have you been eligible for this and not joined?



It's not the order. You should be saving for all of them, not just one of them.

Luckily Marriage and Children aren't of any interest to me, but I would have though it better to concentrate on one? rather than spread my money thin across everything?

CharlieRabbit01

JoeCrystal wrote: »

*stunned* And you decided to opt out willingly. If I was you, I would join in straight away. Of all pension schemes we got in this country, LGPS is one of the best and are like gold dust.

Cheers

Joe

I never joined in the first place and I was intending to opt out when the auto opt in happens as I use the spare bit of money to pay off a debt.

What is good about it?

I've tried looking it up but it doesn't mean much to me hence looking for some advice on the best option to spend my spare £100 a month on.

jem16

CharlieRabbit01 wrote: »

Luckily Marriage and Children aren't of any interest to me, but I would have though it better to concentrate on one? rather than spread my money thin across everything?

A pension - or retirement saving of some sort - should be done from very early on. The longer you leave it, the more you have to pay later in life to make up.

How many years of the LGPS have you missed?

dunstonh

I never joined in the first place and I was intending to opt out when the auto opt in happens as I use the spare bit of money to pay off a debt.

Are you mad?

What is good about it?

Free money. Better than any alternative available. Only a fool wouldnt join the scheme. It really is that much of a no brainer.