People with a Modest Income - I Need Advice

csa

I'm interested to know what people with modest incomes (around 40k family income) have set up in regards to future planning. i.e. do you have life insurance (how much do you pay a month), a pension (how much do you put away a month) etc. and what are you hoping to be able to do by this forward planning? I'm wanted to get my finances in order and want some security, but would like to know what I should be doing, so I thought I would see what others with not a great income do first. Thanks

jfdi

Well, our family income has always been less than your 'modest' 40k, & I thought we were doing well! LOL!

So - house owned outright (250k?), approx £75pcm paid into various insurances - largely long running endowments due to pay out when we're 60ish - 100k total, or so, Personal Pension for OH (pays in £130pcm for last 10 yrs) from S/E work, 2 small Co Pensions for OH (£200pcm at 65), and good old style Civil Service pension for me! PLUS any inheritances we get.

I'm in my late 40's, OH in 50's. Started it all about 25yrs ago.

Does that help?

A

csa

Take your point regarding the 'modest' income... I agree with your comments.:o

Thanks for replying. It helps however I think most people have pensions and my husband refuses to get one and I can't efford to put much into my own so that wont really pay out so I'm interested to know what else we could consider. Ta

dunstonh

from an income only point of view, nothing beats the pension tax wrapper.

With the various tax wrappers all able to invest in the same places nowadays, its just a case of picking the tax wrapper that is most appropriate to your requirements. If you have no pension planning (or very little) then the pension will beat other tax wrappers for income on a like for like basis.

The basic state pension is £4400 a year. If you think £40k is modest, wait until you have to rely on the state pension.