Help pension saving

lmcg

Hi, I am looking for some advice on pension saving. I am a part time local governmant emplayee and am a member of the pension scheme but I know that working part time my pension probably will be not that much. I have about £50 a month to put away but don't know what to do with it. S&S ISA, Unit Trust, Bonds, Private Pension or AVC. Any words of wisdom?

SAHD_Jim

lmcg wrote: »

Hi, I am looking for some advice on pension saving. I am a part time local governmant emplayee and am a member of the pension scheme but I know that working part time my pension probably will be not that much. I have about £50 a month to put away but don't know what to do with it. S&S ISA, Unit Trust, Bonds, Private Pension or AVC. Any words of wisdom?

Most straightforward would be to top up your Local Government pension with AVCs - the Pru do it I think. Plus you'd get tax relief on your contribution, so £50 would get you £62.50 invested. Unless you may need access to the cash before retirement in which case something like an ISA might be better, but will take a while to build.

AlanP_2

I general to provide a more rounded and considered response it would help if you provided a few more details:


Age?

Dependants?

Mortgage?

Ready Cash / Emergency Fund?

20% or 40% tax payer? I would guess 20% as you are working part time but you could have another source of taxable income.


All of these will have some bearing on what might be the best approach for you at this stage in your life and your "target" retirement date.

Have you had a statement outlining your LGPS benefits?

Any other pensions from earlier employment?

Have you asked for a State Pension forecast?

Do you have a "target retirement income" in mind, or have you tried to estimate what you might need for Essentials (Heat, Light, Accom & Food etc.) plus Other (Car, Holidays and the like - essential in some eyes perhaps but you have to cut your cloth as they say).

lmcg

Thanks for getting back to me.

I am 42, have 2 children (13 & 12). I have a morgage of £80,000 but I am trying to over paye it my about £170 a month, there are 18 years left on it. I am also working on an emergency fund which I am about half way through building, It will probable thate another year to get it to the figure I have in mind. I am a 20% tax payer.

xylophone

Build the emergency fund first - are you making the best possible use of interest paying current accounts?

Then you might consider a stocks and shares ISA?

https://forums.moneysavingexpert.com/discussion/5201641

https://forums.moneysavingexpert.com/discussion/5180681 post 181.