Pension Vs Investment

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
2 replies 713 views
daniellove1981daniellove1981 Forumite
2 Posts
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Hi,

I'm 33 and have a pension pot of a whopping £597.00 which I need to transfer over to my new company's Stakeholder Pension.

after speaking with various people, I'm not sure what's the best option to take. Either carry on paying my 3% into my pension or free up capital in my property to buy a new house and rent.

I have 90k outstanding on my mortgage and 20years left to pay.
70K capital to be utilised if I so wish.

Everything is a risk as I have 4 young children but, I want to ensure that when I want to retire, I have enough money to enjoy some simple pleasures.

Help????

Thanks
Daniel.

Replies

  • LintonLinton Forumite
    14K Posts
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    Hi,

    I'm 33 and have a pension pot of a whopping £597.00 which I need to transfer over to my new company's Stakeholder Pension.

    after speaking with various people, I'm not sure what's the best option to take. Either carry on paying my 3% into my pension or free up capital in my property to buy a new house and rent.

    I have 90k outstanding on my mortgage and 20years left to pay.
    70K capital to be utilised if I so wish.

    Everything is a risk as I have 4 young children but, I want to ensure that when I want to retire, I have enough money to enjoy some simple pleasures.

    Help????

    Thanks
    Daniel.

    How much is your employer paying into your pension? Would he pay more if you did?

    I am not clear whether the 3% is what you are paying into your employers pension or is being paid in addition into your £597 pot. If the former, and your employers contribution is small I fear you will have to learn to enjoy very simple pleasures.
  • dunstonhdunstonh Forumite
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    Either carry on paying my 3% into my pension or free up capital in my property to buy a new house and rent

    Would that 3% actually make a difference? i.e. by the time you take tax off it and possibly NI. Plus, you will not benefit from the employer contribution which is free money.
    Everything is a risk as I have 4 young children but, I want to ensure that when I want to retire, I have enough money to enjoy some simple pleasures.

    And £597 for a 30 year old indicates you are way behind. Hopefully you have other pensions as well.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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