Starting Young

atush

No one was talking about S&S isas, but cash for deposit and pensions. S&S isas are a very good thing to look into and invest in.

And given that many would not put S&Sisas into a pension later on but either spend the money or be forced to if they lost their job/got ill. I think putting as little as 13% of available savings each month (not salary) is a wise thing to do.

HardCoreProgrammer

Are you recommending against putting money into Stocks and Share ISA because most people "either spend the money or be forced to if they lost their job/got ill"?
This is a bit like saying that pensioners should buy annuities because otherwise most people will just blow the lot. Isn't it?

I withdrew money from ISAs for home deposit. This is not for a pension, but nonetheless a sensible investment for my retirement (so that hopefully, I will not have to pay rent / mortgage after I retire).
And if I lost my job / got ill, I would rather have access to my money when I need it, thank you.

atush

No, I w as not saying to not use S&S isas at all. but to use a pension for retirement. S&S isas for medium to longer term spending.

As you proved, by spending the S&S isa on buying a property- it can easily be spent! Regardless if that expenditure was a good one. I am not saying it was bad. But the money is gone and therefore not for retirement?

And yes, for some people buying annuities might be in their best interest. Annuities are not evil. They are wrong for many people, but they are right for some people as well. A guaranteed income for life that will not run out, is not always a bad thing?

Say you have a large isa pot you specifically have in your mind as being for your retirement. If you got made redundant, or fell ill, you'd be forced to live on this money. And it would be gone long before retirement.

This risk means that cash, pensions and S&S isas along with a place to live that you own are all important things for a good retirement. Each has it's place in the scheme of things.