ISA or Pension

Sweetteamum

DH and I are looking to start putting money aside for when we get to pensionable age.

We are both almost 40 (and please don't shout at us for not doing this sooner). There's always been something that crops up.

Anyway, neither of us know anything about pensions so any help would be appreciated.

colsten

Some good grounding: https://www.moneyadviceservice.org.uk/en/search?query=pension

Sweetteamum

Thank you. I'll have a good look on there.

jimjames

Do your employers offer a pension? If not then they are likely to have to do so soon so it is a good idea to get the free money from that.

[Deleted User]

How much do you earn? Whether or not you're paying higher rate tax will have an impact on this too.

Linton

Its not either/or. Ideally you should have both as ISAs give you flexibility before retirement.

atush

Def start a pension asap, and yes the employer's pension is best with Free money.

But yes, once you have done this you want S&S isas too. but you do still need an emergency cash pot (for those things that crop up).

So really you need to save on all 3 fronts, but cash and pension first. EVery 80 you out in a pension will be 100 (and every 60 if you pay HRT).

Sweetteamum1

jimjames wrote: »

Do your employers offer a pension? If not then they are likely to have to do so soon so it is a good idea to get the free money from that.

I'm not employed as such. I'm a carer for my children.

Sweetteamum1

citricsquid wrote: »

How much do you earn? Whether or not you're paying higher rate tax will have an impact on this too.

I'm a carer and only get £3107ish per year

Sweetteamum1

Linton wrote: »

Its not either/or. Ideally you should have both as ISAs give you flexibility before retirement.

Really? This makes things so much harder. I'm only a carer for my children and DH is self employed and not earning a fortune.

Sweetteamum1

atush wrote: »

Def start a pension asap, and yes the employer's pension is best with Free money.

But yes, once you have done this you want S&S isas too. but you do still need an emergency cash pot (for those things that crop up).

So really you need to save on all 3 fronts, but cash and pension first. EVery 80 you out in a pension will be 100 (and every 60 if you pay HRT).

We just don't have the spare cash for all this. How do we prioritise which is best :mad: