My Terrible Financial Situation

Stormer79

beecher2 wrote: »

You say you've got a work pension but want to pay into a private pension too - can I ask why? Do you know how much your existing pension is expected to pay out when you retire? Can you make Additional Voluntary Contributions to it? Might be an idea to post on the Pensions forum for more help on this.

I'm a member of the LGPS - again, as with most things here I am woefully uninformed. I have no idea if I can make AVC and actually I don't know what it will give me once I do retire. I just feel vulnerable and with it being very likely I'll never own my own place I'll would like another source of income should I ever get to retire.

enthusiasticsaver

Stormer79 wrote: »

I'm a member of the LGPS - again, as with most things here I am woefully uninformed. I have no idea if I can make AVC and actually I don't know what it will give me once I do retire. I just feel vulnerable and with it being very likely I'll never own my own place I'll would like another source of income should I ever get to retire.

I am in the LGPS and yes you can make AVCs into that scheme. It is actually a really good scheme being one of the last schemes available still linked to salary (albeit average rather than final now due to government tinkering again.) You should be able to get a statement either off your pension administrator or my lgps gives me access to online information.

AllyMac

I think you'll feel loads better after you do a SOA!

Your salary is good, you are in a good pension scheme, you're not tied into an expensive mortgage and house repairs, there is definite scope to reduce a high CC %.

It's daunting because you feel uninformed and don't know where to start - this board can help with that!

I really think on £30K you can hit that debt quicker than you think!

I have to challenge the Japan/HK trip next year though. Not cheap locations! Non essential spending is OK whilst paying off debts - perhaps if saving for the trip means a lower debt repayment, but still doesn't increase the debt. I struggle to see how it's essential? I'm guessing a family wedding? But not two locations. Being debt free is more important than someone else's idea of how you should spend your money! Plenty of people without your debt wouldn't be able to afford Japan!

Stormer79

AllyMac wrote: »

I think you'll feel loads better after you do a SOA!

Your salary is good, you are in a good pension scheme, you're not tied into an expensive mortgage and house repairs, there is definite scope to reduce a high CC %.

It's daunting because you feel uninformed and don't know where to start - this board can help with that!

I really think on £30K you can hit that debt quicker than you think!

I have to challenge the Japan/HK trip next year though. Not cheap locations! Non essential spending is OK whilst paying off debts - perhaps if saving for the trip means a lower debt repayment, but still doesn't increase the debt. I struggle to see how it's essential? I'm guessing a family wedding? But not two locations. Being debt free is more important than someone else's idea of how you should spend your money! Plenty of people without your debt wouldn't be able to afford Japan!

Hi,


Thanks for getting back to me. I'm beginning to see that there is a way forward, I'm planning to do an SOA this weekend, unfortunately due to unforeseen circumstances as of yesterday I now need to locate a new place to live so that has to take priority and unfortunately means more expenditure. It does seem that whenever I take a step forward I get knocked back.


I can see why you would question the Japan/HK trip - it's something I am feeling anxious about but its very important for a personal reason that I go. Perhaps I can drop the Japan element but the HK bit is essential for me. I'm not paying for accommodation while I'm there, I will be looking for cheaper, indirect flights and will build up my money before I go so everything is paid up front and not adding to any debt - yes, it will inevitably slow my debt clearance but it's important to me that I go.