Out of my depth, getting sorted for retirement.

tori.k

Basically im very late to the thinking about retirement one day party as I'm 44
I moved back into employment after being self employed and putting nothing aside other than my class 2&4 so will have a full state pension if I make it that far.
So far we sorted out our budget cleared the debts, my employer uses nest as there pension obligation and for the last few months I have been adding to this a £100 a month. That's all I currently have spare as we are currently trying to remove our housing costs and that's going to take 10 years if all goes well.
On reading nest doesn't seem to be that great, but with so little to save its not work talking to a financial advisor, but I'm out of my depth with understanding S&S isa but wonder if this could be a better option for me long term and just keep my mandatory payment to the nest.
I'm trying to juggle so much I can't see the wood for the trees anymore.

justme111

So you are paying into nest £100. Is this a minimal payment matched by your employer? How much do you need to live on now ? Are there any expenses that you will not have in retirement ?

bostonerimus

Pay enough into NEST to get the maximum contribution from your employer and then think about an S&S ISA.

tori.k

I'm a minimum wage earner, so it's the minimum legal obligation I get,I personally contribute an additional £100. I will be very much depending on my SSP, I'm not very high maintenance luckily and hopeful no housing cost and few outgoings, we should be able to manage, but it's doubtful that my husband will make it to government retirement age due to his diabetes, but hopefully will last out the 11 years he currently needs to be eligible for his full state pension.

pjcox2005

tori.k wrote: »

That's all I currently have spare as we are currently trying to remove our housing costs and that's going to take 10 years if all goes well.
QUOTE]



Do you mean by this that you are currently overpaying your mortgage or that's just the term left. If overpaying, then potentially you may be better saving it or investing it elsewhere. Where probably depends on what savings you already have and what risk level you can tolerate.

dunstonh

bostonerimus wrote: »

Pay enough into NEST to get the maximum contribution from your employer and then think about an S&S ISA.

How have you worked that out to be the best option?

The OP has around £3k of unused personal allowance to use up in retirement (assuming full state pension entitlement). We dont know how much of that is going to be used by the NEST pension but there probably is a fair bit left over considering what he has said. So, a pension would be best for that. Not an ISA.

The OP also says "we" and mentions a husband. We dont know what their provision or tax situation is.

Basically, not enough info to know whether pension or ISA is best but based on solely what has been said so far, the pension is likely to be best.

justme111

tori.k wrote: »

I'm a minimum wage earner, so it's the minimum legal obligation I get,I personally contribute an additional £100. I will be very much depending on my SSP, I'm not very high maintenance luckily and hopeful no housing cost and few outgoings, we should be able to manage, but it's doubtful that my husband will make it to government retirement age due to his diabetes, but hopefully will last out the 11 years he currently needs to be eligible for his full state pension.

So you contribute additional £100 not matched by your employer into your work pension?
How do you know you will need more than SP plus that minimal pension from your employer in retirement as you have not replied to the questions about income and expenditure ?

tori.k

Husband in the same boat, but with standard life not nest.
The house is in the process of being bought it would make more sense with the interest being so low, but with my husbands medical issues it makes more sense to get it paid off sooner if we needed to move to one income.
Ideally would be looking to try to make a minimum 3k pension on top of the predicted Current state 8K pension Current pot is worth £367.51 I'm realistic but not afraid of hard work.

tori.k

Income 13k per year ( job one) I currently have a second little job that don't get any pension contribution that earns me around 5k per year.
Husband earns 14.5k take home a year.
Yearly outgoings were £14,928. Last year. We currently rent but are in the process of buying a house ( hopefully) I'm expecting the outgoings to remain around the same for the two years fixed.
I don't know if we would need more than our current arrangements, does anyone.

justme111

Are 13 and 5 k take home or before tax ?
Do outgoings of 14.5 k include rent ?
So you were 18 k in credit last year ?

tori.k

Yes take home, yes includes rent which the mortgage if it happens will only be £23 cheaper per month. We are currently +24k which will be the deposit for the new house.