31, no pension and concerned

adonis10

Pension over property, or vice versa? Say in the future an option to buy a buy to let place came up, would you say that's a more worthwhile proposition that private pension?

CLAPTON

jamesd wrote: »

Have a look at posts one and two to find out more about how pension contributions can be related to final income in retirement.

Without adjusting the calculations in the first post for your slightly lower age, each £100 gross in now, increasing with inflation, is likely to pay you an income of £4812 a year from state pension age, increasing with inflation.

is the £4,812 in real (today's) value?

jamesd

Yes. All calculations used after-inflation values and the contribution were also specified as increasing with inflation each year.

Post one: both a percentage of earnings, which have historically increased at RPI plus 1% and " into a pension a month, increasing with inflation"

Post two: "assuming you increase this with inflation each year"

The growth rate is about half a percent below the long term after-inflation return of the UK stock market, to allow for charges and some non-equity use.

So with all growth and contributions inflation-adjusted, so is the final income level.

Thanks for mentioning it, for the convenience of anyone who doesn't follow the links I've edited my post in this thread to say that the income is in today's money.

theGrinch

many on less than 24k, so you have a headstart. just need to spend less than you get and save the difference in a tracker fund

worried_jim

I earn a similar amount, live in the South East, have a mortgage and save 5% with an additional employer contribution. Op you need to start pension saving now, with employer contributions and tax relief it is free money.

Don't wait till 2018, get a private plan now.

adonis10

worried_jim wrote: »

I earn a similar amount, live in the South East, have a mortgage and save 5% with an additional employer contribution. Op you need to start pension saving now, with employer contributions and tax relief it is free money.

Don't wait till 2018, get a private plan now.

Fair point. Any idea which private plan, though? I'm so paranoid about all the scams out there, no idea what is a good bet.

atush

Hire an IFA or go to Cavendish online. You can use trackers til you build up a decent amt. And do use more than a UK tracker.

AS for property, owning your own place is the way to start. Not buying BTL before you have a decent pension built up.

If you save alongside your pension in S&S isas, then you could always use this fund years on to start a BTL portfolio if you really want to go that way.

But BTL is not easy, or all that profitable unless you know what you are doing. And the taxes on the property, the gain, and the income are also something you dont have to pay in a pension.

So start the pension.

adonis10

atush wrote: »

Hire an IFA or go to Cavendish online. You can use trackers til you build up a decent amt. And do use more than a UK tracker.

AS for property, owning your own place is the way to start. Not buying BTL before you have a decent pension built up.

If you save alongside your pension in S&S isas, then you could always use this fund years on to start a BTL portfolio if you really want to go that way.

But BTL is not easy, or all that profitable unless you know what you are doing. And the taxes on the property, the gain, and the income are also something you dont have to pay in a pension.

So start the pension.

So, say I have £600 spare at the end of the month, £200 to a s&s isa, or as much as poss? Thing is, I have a Lloyds regular saver that I'm putting £400/month into at 4% so want to maximise that first.

Next payment due in a few days so will keep the virgin one going and then do some research as to which to change to. Is the main difference the annual management charge? Should I be more up to speed with the unit price on a daily basis and make deposits sporadically, depending on price fluctuations, or, with something this small, stick with a monthly payment? Or both?

AlanP_2

I'd stick with a regular monthly payment into ISA and/or Pension rather than trying to time the purchase down to the day.

Setup a DD and let it do its thing, checking progress occasionally.

adonis10

AlanP wrote: »

I'd stick with a regular monthly payment into ISA and/or Pension rather than trying to time the purchase down to the day.

Setup a DD and let it do its thing, checking progress occasionally.

Will stick to this, I think. £200/month for now and see how it goes. Not going to make massive gains or losses but at least there's a bit more fluctuation than a savings account which makes it vaguely interesting.