When is the best time to start saving towards retirement?

xylophone

I am in the forces so will receive a forces pension. To be honest I'm not really sure how it works,

So it would seem if you think that it is "not much"!!

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252572/20120823AFPS05YPSEMMP124revisedAug2012.pdf

https://www.gov.uk/government/publications/the-new-armed-forces-pension-scheme-q-and-a

27col

You might still be young now. But in 35 years time I'll bet that you will be saying "Where the hell did the last 35 years go". take it from one who said just that, and still does, regularly.
If, as you say, you have barely any outgoings, then now is the time that you can most easily afford to contribute to a pension scheme.

chiefie

The best time ? Yesterday ....

Swash

xylophone wrote: »

So it would seem if you think that it is "not much"!!

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252572/20120823AFPS05YPSEMMP124revisedAug2012.pdf

https://www.gov.uk/government/publications/the-new-armed-forces-pension-scheme-q-and-a

justme111 wrote: »

What dunstonh said. I think u do not realise how much more you would need to pay to get the same "not that good " amount if you were contributing privately.

My point was never to sound ungrateful about my work pension. My point is I will get 1/47th of my annual salary for every year I serve. So if I serve 8, I will get 1/47th of my salary times by 8. When in reality, I have more disposable income that I can contribute. I cannot contribute anything else towards my work pension, according to the guidance I have read up on this afternoon. So this is why I have asked the question about pensions. The amount I would receive from my work is not enough to live off when I retire. So I am looking into a personal pension.

_CC_

HappyMJ wrote: »

Me personally I wouldn't save too much in a pension fund when you're that young.

I'd buy a property first and pay the mortgage off first.

I prefer to invest in my BTL property which is effectively my pension. It's not tax efficient but I can liquidate it whenever I want and do anything I want with the money at any time. I don't have to wait until I reach a certain age before I can spend it.

When I get to pension age I'll still have the rental income and also get any basic state pension on top and if I liquidate it I'll have a big chunk of money in the bank which I can live off.

And to offer the flipside: property is illiquid, not as tax efficient, resource consuming and very susceptible to changes in government policy.

I'd take a pension fund and it's tax benefits any day, as my main source of pension. I think encouraging people into BTL instead of a pension fund is a bit hazardous.

_CC_

Swash wrote: »

If I asked my friends this question they would probably laugh at me because I'm not too close to retirement age yet. But when is the best time to start thinking about pensions?

As soon as possible.

Learn about compound interest and play around with calculators - this will make you see that the sooner you begin the much better off you'll be, and remember that you receive tax relief on your contributions so it's very tax efficient way to save for your retirement.

justme111

I see. You already contributing maximum and have money left As far as I know there are two types of pensions:
- personal pension where y approach different providers , tell them you want pension and transfer money to them.
-self invested pension where you go on some investment platform and open pension account in your name , chose investments (or take ready made ones that platform offers) and transfer money there.

bigfreddiel

Swash wrote: »

To be honest I'm not really sure how it works, but I'm not planning on staying in the forces to be entitled to the 'full' pension.

Now this is interesting, and no criticism of Swash, a question for anyone in the finance profession.

Why is Swash not really sure how it works?

Surely as a professional in the finance industry it's your job, duty, to explain things in plain English. Don't hide behind that feeble excuse that it's complicated, it's due to regulations that you can't explain things, or worse still that everyone is different!

I would think Swash is a good example of how similar people are.

I would hazard a guess that a section of squaddies, all of similar age, status etc, all earning the same amount and similar outgoing so need the same financial advice.

Cheers fj

dunstonh

Why is Swash not really sure how it works?

1 - probably hasnt read the pension booklet
2 - probably relied on someone else to tell him things and that person doesnt know (workplace myths for example)
3 - probably has never sought advice from an adviser.

Surely as a professional in the finance industry it's your job, duty, to explain things in plain English. Don't hide behind that feeble excuse that it's complicated, it's due to regulations that you can't explain things, or worse still that everyone is different!

And if he pays for that service, he will get it.

atush

HappyMJ wrote: »

Me personally I wouldn't save too much in a pension fund when you're that young.

I'd buy a property first and pay the mortgage off first.

I prefer to invest in my BTL property which is effectively my pension. It's not tax efficient but I can liquidate it whenever I want and do anything I want with the money at any time. I don't have to wait until I reach a certain age before I can spend it.

When I get to pension age I'll still have the rental income and also get any basic state pension on top and if I liquidate it I'll have a big chunk of money in the bank which I can live off.

Not paying into a pension that has employers contributions is just plain stupid, not to mention having a highy taxed BTL instead of a pension.

BTL in addition to a pension is fine if that iw what floats your boat, but the tax regime is changing and will affect yields dramatically.

And overpaying a low interest rate mtg instead of investing in pensions that are in equities and boosted by TR is also very poor advice.

OP, i'd disregard this guy if I were you?