Job change, pension advice

bloke91

Hi

I have a left a local goverment job, I am 30 and I couldnt see me doing the local goverment job for the next 30 years, there was little scope to move up or sidewards and I was board.

With leaving I have lost access to the LGPS, but have 12 years service I plan to freeze.

My new role has a defined contribution which I know isn't as good, I will need to monitor and see a financial advisor regarding how its invested etc. I intend to pay 7% and my employer 5%, is there anything else I can do for retirement apart from isa"s etc. Will this pension be enough?

Even though I know most companies are switching to defined contribution pensions now, I keep thinking I should of stayed in the local goverment job for the pension? Wondering if fiancially speaking I have made a mistake.

Any advice/views or thoughta would be appreciated.

Thanks in advance

R_P_W

Working another 30 years in a job you didn't want to be in sounds a bit grim just to get the pension.

Whether what you pay in is enough, do you have a projection?

atush

there are 4 planks to retirement.

Pension, you are doing that. Homeowner (to provide a stable place to live). Cash Savings (in ISAs to save tax now and in retirement). and Investments (which would include S&S ISas).

So pensions. You are paying in 12% of salary which isn't bad, but could be higher. What rate of tax do you pay?

Do you have a mtg? what rate? Can you overpay w/o penalty?

Cash- do you have 6 months in cash?

S&S Isas- do you fill your allowance each year?

bloke91

The new job which has a defined contribution pension has 42k salary so 40% taxpayer

atush

Well, I am guessing you don't want much help, as you answered only one of like six or more questions.

you will only get 40% TR on a small part of your pension, as you are only just over the limit. but do make sure HMRC knows so you get the extra tax back.

bloke91

I am at home owner have 14 years left on morgage Intend to buy a bigger hoise soon, debating if to sell my current house and use equity towards next house or some how come up with 20k for next house deposit and keep my current one to rent out.

Have an isa with 5k in it, saving about 150/200 each month in isa in future.

No investments at the moment. Once started new job i intend to see an ifa.

What do i need to do about telling hmrc about getting tax back on what i am paying into pension fund? I dont understand?

atush

In some cases, you must tell HMRC about your pension. Basic rate tax is added automatically, but you need to claim the HRTax back. So ask your HR or call HMRC.

What rate is your mtg? How soon will you need the bigger house?

Sounds like you need to save more in cash, both for a house move, and an emergency pot.

But if your mtg rate is higher than you can get saving, it could be worth overpaying your mtg instead.