Where can I learn more about pensions?

edinburgher

Your SPA will be 67 so likely to be 57 by the time you get there as opposed to 55 - or maybe later if SPA moves out a bit.

I believe her state pension age will be 68. It's 68 for me and I'm a good few years younger than her. I'm currently planning for 58 as a minimum to get access to pension pots.

Sorry, I'll try and be clearer. I have to pay in according to current minimum rules (so I think I have to pay 1% rising to 4% when government rules change?) but the 5% of my base salary they pay is the same whether I pay in 1% or 10%. If that makes sense?

Pay whatever it takes to get the employer match. After that, consider the likely benefits of AVC into this scheme: any sort of split the difference of saved NI with the employer? Tax relief? If neither of those are present, look at the scheme costs and see what you can get elsewhere.

Your current ISA fund would also be a good home for further investments (or a mix of it and another fund if you feel the need to reduce your exposure to equities).

Finally, if you're looking for early retirement, you'll need to plan how to divide your money between ISAs and pensions, bridging the gap between early and traditional retirement etc.

atush

Overall (be it in just the employers pension or a PP as well) at 24 you should aim to contribute 12% of your salary in total, leaving your contribs at 7% (although this can include your tax relief).

Obv you wont know until you get pension details later on if your GPP is good for all of it or not, but it will help you plan.

AS you already have a mtg, you should aim for 3-6 months of outgoings in emergency cash fund, plus S&S isas for medium term savings (can be used in a house move for instance or for other things like starting a family/marriage).

Calfuray

OldBeanz wrote: »

My favourite article http://www.telegraph.co.uk/finance/personalfinance/investing/10742396/When-saving-for-10-years-pays-more-than-saving-for-40.html

That was really interesting, thanks!

edinburgher wrote: »

I believe her state pension age will be 68. It's 68 for me and I'm a good few years younger than her. I'm currently planning for 58 as a minimum to get access to pension pots.

Older?

edinburgher wrote: »

Pay whatever it takes to get the employer match. After that, consider the likely benefits of AVC into this scheme: any sort of split the difference of saved NI with the employer? Tax relief? If neither of those are present, look at the scheme costs and see what you can get elsewhere.

Your current ISA fund would also be a good home for further investments (or a mix of it and another fund if you feel the need to reduce your exposure to equities).

Finally, if you're looking for early retirement, you'll need to plan how to divide your money between ISAs and pensions, bridging the gap between early and traditional retirement etc.

Thank you as always, will look into these.

atush wrote: »

Overall (be it in just the employers pension or a PP as well) at 24 you should aim to contribute 12% of your salary in total, leaving your contribs at 7% (although this can include your tax relief).

Obv you wont know until you get pension details later on if your GPP is good for all of it or not, but it will help you plan.

AS you already have a mtg, you should aim for 3-6 months of outgoings in emergency cash fund, plus S&S isas for medium term savings (can be used in a house move for instance or for other things like starting a family/marriage).

Sorry, further clarification:
- already have 6 months of emergency cash fund
- already married
- no kids now or in future
- already have S&S ISA with Vanguard LS, not sure if I should branch out or not.

Thanks for the information!

Lokolo

Personally I would branch more out in your S&S ISA. Trackers are fine, but you are young. Find a few stocks you might like. You have a resonably low (mine is over double yours!) mortgage. You are around 75% LTV so if there are no remortgage fees, perhaps look when you get below 75% LTV to remortgage to a lower rate. You are already overpaying on that.

5% yes great. Leave it at that. However keep an eye out, perhaps suggest to your employer, about salary sacrifice. I believe this saves on company NI employee contributions, so it would save both of you money (some companies even put their NI saved into YOUR pension!).

edinburgher

Older?

I'm often told I'm childish :rotfl:

Personally I would branch more out in your S&S ISA. Trackers are fine, but you are young. Find a few stocks you might like

Why?

Also, I don't see how the OP can 'branch out' from a well diversified fund of funds covering stocks and bonds from around the world by purchasing a few stocks that the fund probably already holds in a representative proportion.

Pincher

I would look at it in terms of maximising free money from the employer and tax rebate. Ideally, you want to put money in when you can attract higher rate tax rebate. I would just sign up for the minimum 1% for now, then ramp it up when I start paying 40% tax.


Money in an ISA can also grow, the difference is if you need a deposit on a house, you can use it.

kidmugsy

Calfuray wrote: »

Sorry, I'll try and be clearer. I have to pay in according to current minimum rules (so I think I have to pay 1% rising to 4% when government rules change?) but the 5% of my base salary they pay is the same whether I pay in 1% or 10%. If that makes sense?

Aha, then each year pay in whatever is the minimum amount to earn the full employer contribution.

It is, as they say, "free money".