Advice - what to do with a £10k pay rise

want_to_save

if you currently live comfortably on your existing salary if it was me i would save any excess over current salary as you didnt have it before and it helps build a nest egg for retirement

kidmugsy

Usual advice might be to clear any expensive debt, establish or top up a cash emergency fund, check your insurance policies (I suspect that many people buy insurance that they shouldn't and fail to buy insurance that they should). After that consider savings/investments with a view particularly to diversification, tax efficiency, and low charges. Don't be frightened by the thought of extra expenditure that's well considered. But never spend money you don't have to buy things you don't want to impress people you don't like.

Don't overlook the question of whether pension contributions for your wife might be more beneficial than pension contributions for yourself.

bigadaj

Apodemus wrote: »

Don't do it! That's a slippery slope for sure!

If you're on a slippery slope then a better car might be advisable.

Eco_Miser

justme111 wrote: »

- pension which you would forget about till you are 50 and then looked at it at 50 and hopefully realised you can retire now.

Isn't the minimum age for drawing a pension 55, soon to rise to 57, and expected to rise even further?

steampowered

Why not increase pension contributions?

That money gets deducted at source. If you never see that money coming into your bank account, you won't be tempted to spend it.

Do enjoy it though. There is nothing wrong with spending a bit more on a higher salary. So long as you to live within your means and do not accumulate unnecessary debt.

justme111

Eco_Miser wrote: »

Isn't the minimum age for drawing a pension 55, soon to rise to 57, and expected to rise even further?

It is. Here is a scenario I imagined - at about 50 the chap thinks : " why don't I tally up what I got so that I could plan. " He then finds out that thanks to a lot of eaely contributions he has a pension pot which would mean that he has what he needs and even more when he is retired. He has as well ISA money /other savings/ had inheritance/ has an option of a redundancy at his work which has been not so nice lately. He realises he can cover a few years living expenses with a combination of the above sources or even get money by remortgaging the house with a view of paying it off with pension lump sum and he retires:).

atush

steampowered wrote: »

Why not increase pension contributions?

That money gets deducted at source. If you never see that money coming into your bank account, you won't be tempted to spend it.

Do enjoy it though. There is nothing wrong with spending a bit more on a higher salary. So long as you to live within your means and do not accumulate unnecessary debt.

An Employers pension contributions are taken at source.

If you have a PP or Sipp, the money is after tax, and the tax is added back on once in t he pension. So 100 into a pension will cost you 80 etc.

The_Real_Cheddar_Bob

Apodemus wrote: »

Don't do it! That's a slippery slope for sure!

after my pcp thread and paying £1500 i certainly wont be

The_Real_Cheddar_Bob

kidmugsy wrote: »

But never spend money you don't have to buy things you don't want to impress people you don't like.

Don't overlook the question of whether pension contributions for your wife might be more beneficial than pension contributions for yourself.

Thank you. I have no debt other than a mortgage. I like your comment, its what my wife says!

I have overlooked contributing to my wifes pension, currently she doesnt have an income.

The_Real_Cheddar_Bob

in fact i like it that much, its staying under my name.