Pensions - to start or not to start?

p00hsticks

Wayne87 wrote: »

I max out my ISA allowance every year

Cash or S&S ISAs ? If cash then chances are your savings are being eroded in real terms - you should be looking at S&S for long term growth.

atush

yes, anyone paying HRTax should fill their boots in case................

jamesd

Jaguar_Skills wrote: »

what is the reason you suggest waiting with regards to the pension if HRT payer?

I was replying to a person who is currently a basic rate tax payer. Since you are a higher rate tax payer already I suggest that you use your whole higher rate income for pension contributions if possible.

Jaguar_Skills

Thanks all. Re the tax return do you have to fill one of these in yourself or does it get sorted out by HMRC in due course?

Is it only for pensions that you need to fill one in? I assume I don't need to do it for anything else?

Only just become a HRT payer on £45k....

xylophone

You can ring HMRC re your higher rate relief on the pension.

See http://www.telegraph.co.uk/finance/personalfinance/tax/11135082/How-to-claim-pension-tax-relief-while-it-lasts.html

jamesd

Phone or letter are better than tax return. You can also tell HMRC how much you plan to pay in during the 2015/16 tax year and they will adjust your tax code to give you the higher rate relief throughout the year so you don't have to wait.

dprice

atush wrote: »

I agree, start now.

No debt, cash reserves and S&S isas so enough for a house deposit. so you are in a position to start a pension.

As a rule of thumb, starting at 30, look for 15% of salary incl tax relief. but can be smaller for now if saving for upcoming known expenditure like holidays/cars or if you have decided to buy what is stopping you?).

Does this rule of thumb include company contributions?


If my employer contributed 5% - I would only need to find 10% personal contribution?


Or rule of thumb blanket 15% personal contribution and any employee is a bonus?

atush

That rule of thumb does incl employers contribs. but remember it should go up each year with your salary too.

But if you want to retire early, or in more comfort, expect to pay more later on.