House Buying Vs Pension

Thrugelmir

GeorgiaMW wrote: »

We're really struggling to afford to get on the property ladder because we simply cannot save anything. We're currently living inside our means but after years of being stupid with money and only just in the past 6 months decided to cut up the credit cards and budget carefully, we are still paying off debts with whatever we have left over every month. So far doing REALLY well, we've reduced our overdraft by half and thus our interest payments, we've paid off all our purchase credit (sofa, fridge, wedding rings, tv etc) and we're now living within our means. So I'm VERY proud of me and hubby. However, we've nothing left over to save.

Stick at it. No one will tell it's going to be easy. As takes a lot longer to repay the money than spending it. 6 months is hardly any time at all.

olly300

AlexMac wrote: »

I have less of a concern than others above about withdrawing hubby's (presumably fairly small) pension pot to help buy a home, as I don't trust the pension providers who can gobble up 50% of your contributions in fees over a lifetime -
(http://www.pensionstheft.org/)
and as I don't trust the Pensions Minister to deliver on his May 2103 promise to cap these fees -
(http://www.telegraph.co.uk/finance/personalfinance/pensions/10050526/Cap-on-pension-fund-fees-to-help-savers.html )
any more than I feel the government has got a grip on Bankers. Sorry to sound cynical.

I really admire you for the way you're beginning to

I phoned up my (many) pension providers from my ex-employers and talked to them about moving my pensions into a SIPP.

I was really surprised about the different amounts in the different schemes and the fees. The schemes where I thought I was being screwed over and would be for transferring them out I found out I wouldn't be and vice versa.

Unfortunately you cannot make a rule about your pension particularly if it's not your own as you need to find out the facts and see the figures.

knightstyle

In the past I would have said go for the property route BUT at the moment I would look at the pension forecast, then look at other pension schemes, try to get a copy of Which or some financial mag. doing a best buy, Then and only then make your decision.
I went for roughly 60% pension, 40% property and the property route was best but this was in the mid 90s.