Private pension

BengalTilly

Hi,

I've just been prompted to come on here after reading an article about pensions and as daft as it sounds something clicked in my head that I ought to act my age and start considering my future!!

So I'm a 34 married man who works for the NHS. My husband (37) formally worked for the NHS before the service was took over by Care UK - so we pay into NHS or NHS-like pensions. We are currently officially "private renting" however it is in the granny annexe of my in-laws at a much reduced rent to try and allow us to 1) save for a house deposit and 2) clear debts (credit cards etc).

However I've never given life assurance and personal pensions much thought until about 10 minutes ago ... with the way the future is looking with pensions etc. should we be taking out private pensions and life assurance for our futures (we do not intend to have children). If - as I'm expecting - the answer is yes - where do I start?

Any advice appreciated!

kidmugsy

BengalTilly wrote: »

we pay into NHS or NHS-like pensions. ...I've never given life assurance and personal pensions much thought until about 10 minutes ago ... should we be taking out private pensions and life assurance for our futures (we do not intend to have children).

If you are both working and plan no children it's not necessary to take out life insurance until you've got a house and mortgage. It might be wise to look at the sorts of insurance that gives you an income if you fall seriously ill, or if you become unemployed.

Your first priority is saving an emergency fund and getting rid of debt. Then saving for a house. Pensions probably come after that unless one of you is paying a lot of a higher rate tax. If neither of you has owned property before you could look at LISAs as a help to house-buying: available, I understand, from June or so.

Kynthia

With regards to pensions and savings it's all a balance as we have limited income. With your income you need to have shirt term emergency savings and enough spare money to enjoy life a little now. You also need to be thinking about medium term savings so that you can afford the big things you need to pay for such as house deposit, then car, then renovations, etc. Thirdly you need to think about pensions as it's not something you want to leave until your 50s as then you could have a very poor retirement.

The balance of how you distribute your disposable income between the three can change over your life so you should regularly review it. You have debts and don't own your own property yet, so if I were you I would be a member of your pension scheme but not contribute extra. I'd pay down debts and save a deposit. Then review again later although if you are paying a lot of tax and your debt is low interest you might want to rethink tgat.

Life assurance is needed if someone is financially dependant on you. Most people get it if they have children or if a partner couldn't afford to keep their house without then, etc. Its personal to everyone.

GunJack

the NHS scheme should have a death-in-service of 3 or 4 times salary, maybe the other one does too - check these out before forking out on life cover, and ensure both of your death beneficiary nominations are up-to-date.