I'm 28 and want to retire at 60

[Deleted User]

Bigbobby wrote: »

My payments have stayed at 15% since i was 24. I have not had a single pay rise over the past 4 years.

That's no good! The majority of pay rises you will experience during your career come from moving jobs, employers pay far more to obtain employees than retain them. Although every career is different and job hopping might not be an option (and it's important to consider the total value of your compensation not just the salary) it might be worth putting some feelers out for a new job (which you can take, or leverage for a raise with your current employer). The worst case scenario is you find out that you're stuck where you are (nothing lost).

CKhalvashi

If 20% taxpayer I'd be focusing on chucking as much into ISA's and regular savings (high initial interest, to chuck into ISA the following year) to begin, before looking at increasing payments to the pension.

If you're 40% taxpayer, then the pension would possibly be the more tax-efficient option in the long term.

NotSkint

citricsquid wrote: »

That's no good! The majority of pay rises you will experience during your career come from moving jobs, employers pay far more to obtain employees than retain them. Although every career is different and job hopping might not be an option (and it's important to consider the total value of your compensation not just the salary) it might be worth putting some feelers out for a new job (which you can take, or leverage for a raise with your current employer). The worst case scenario is you find out that you're stuck where you are (nothing lost).

I have found this to be true, and as said it isn't just the money. The pension schemes that companies offer vary dramatically and I can't emphasise enough IMHO how important and valuable a good pension scheme is. Don't just look at the salary. I once left a job with a good DB scheme, for what I thought was a massive pay rise. However, once I took into account just how much I had to put into the DC scheme, it wasn't a better deal. I was lucky as I ended up going back to the original company for a better salary and the holy grail of DB pension and my DC contributions actually managed to purchase the missing years of DB. Still a lifetime ago, and no DB for me now but it taught me a lesson in not just looking at the headline salary.

atush

CKhalvashi wrote: »

If 20% taxpayer I'd be focusing on chucking as much into ISA's and regular savings (high initial interest, to chuck into ISA the following year) to begin, before looking at increasing payments to the pension.

If you're 40% taxpayer, then the pension would possibly be the more tax-efficient option in the long term.

I might have agreed, and did go half way-

but the OP is already on the property ladder and has a 6 month cash emergency fund. They say retiring early is their goal so I dont think regular savers into cash are appropriate in this case, and that splitting between S&S isa and more pension would work better.