People in their 30's - future financial plans?

Alexland

@MerlinsBeard is it too late to change career path onto something that could meet your ambitions?

justme111

Merlin's_Beard wrote: »

Am 30 and a bit depressed reading this thread!

Pension still only has a notional amount in (workplace bare minimum with mandatory enrolment, and a newly opened SIPP this year). So will definitely be working to retirement age, whatever that may be when I get there.

Not a homeowner, will all savings essentially going towards deposit at the minute. Hopefully once I'm a homeowner and not racing against house price rises more can go to pension.

On a career path with no real hope of ever becoming more than a basic rate taxpayer.

And so far behind on £34k, which is a more than average salary!

how much do you spend a year ?

Lokolo

Merlin's_Beard wrote: »

Am 30 and a bit depressed reading this thread!

Pension still only has a notional amount in (workplace bare minimum with mandatory enrolment, and a newly opened SIPP this year). So will definitely be working to retirement age, whatever that may be when I get there.

Not a homeowner, will all savings essentially going towards deposit at the minute. Hopefully once I'm a homeowner and not racing against house price rises more can go to pension.

On a career path with no real hope of ever becoming more than a basic rate taxpayer.

And so far behind on £34k, which is a more than average salary!

As easy as it is for me to say, not everyone can be successful and earn loads. You need to do what makes you happy.

£34k at 30 is an OK amount to be honest and makes you on track to retirement.

It would be good if you can get on the housing ladder so that you can not have to pay rent throughout the retirement though.

adonis10

Merlin's_Beard wrote: »

Am 30 and a bit depressed reading this thread!

Pension still only has a notional amount in (workplace bare minimum with mandatory enrolment, and a newly opened SIPP this year). So will definitely be working to retirement age, whatever that may be when I get there.

Not a homeowner, will all savings essentially going towards deposit at the minute. Hopefully once I'm a homeowner and not racing against house price rises more can go to pension.

On a career path with no real hope of ever becoming more than a basic rate taxpayer.

And so far behind on £34k, which is a more than average salary!

It is all relative but don't be too despondent about 34k at 30, it isn't bad when compared to the whole of the working population (I don't have the stats, though). That said, I can relate as I am 34 and on 32k and no real idea of how I can improve that. Perhaps I am destined to be in the 30-35k ballpark for life. I guess it is a question of when do you accept your lot and plod along accepting that you've hit your personal ceiling? Very difficult.


Have you got a detailed budget? If not, I would advise you to do one asap as it may well surprise you exactly what you spend regularly without thinking about it.

Teacher2

I am 61 and I'd say that the one thing I have learned is that you cannot see what is coming round the corner but that if you plan and save it is better than leaving everything to chance.

My advice is overpay your mortgage so you can finish it early. Then save the monthly mortgage amount in ISAs and tax protected products.

A thing which stymied our financial plans was the tanking of interest rates brought about by QE. £100,000 at 5% would have yielded £5000 a year and now makes barely £300 which a rabbit couldn't live on.

Also, our children have needed help to the tune of tens of thousands of pounds with university costs and housing deposit assistance (renting and buying). We paid their accommodation fees and that alone cost us £30,000 out of taxed income, a cost totally unforseen when we started out in 1975 together.

Changes in stamp duty and inheritance tax have changed our plans and the total tanking of annuity rates have cost my DH at least £10,000 a year.

We did not predict such things as the internet, mobile telephony and social media, cheap flights, the rise of subscription lifestyles, cheap car finance, 1% mortgages, celebrity culture and many other things which are, today, ubiquitous. We have also seen a complete reversal in social attitudes whereby the prudent and those who save , who used to be respected and imitated, are now reviled as 'rich' and targeted by everyone from business to government as cash cows to fund the lives of the imprudent.

Nevertheless, my DH and I still think that getting bang for your buck and saving are the way to go. Keep a constant eye on what is going on in the financial and political world and adjust as you go.

justme111

Merlins beard probably does not have that much money left after tax, NI, rent and savings so when all of it goes/decreases in retirement he may well be panicking unnecessarily now. Earning 40+k is not the meanimg of one's life so no need to feel down for not doing it.

bugslet

Merlin's_Beard wrote: »

Am 30 and a bit depressed reading this thread!

Pension still only has a notional amount in (workplace bare minimum with mandatory enrolment, and a newly opened SIPP this year). So will definitely be working to retirement age, whatever that may be when I get there.

Not a homeowner, will all savings essentially going towards deposit at the minute. Hopefully once I'm a homeowner and not racing against house price rises more can go to pension.

On a career path with no real hope of ever becoming more than a basic rate taxpayer.

And so far behind on £34k, which is a more than average salary!

justme111 wrote: »

Merlins beard probably does not have that much money left after tax, NI, rent and savings so when all of it goes/decreases in retirement he may well be panicking unnecessarily now. Earning 40+k is not the meanimg of one's life so no need to feel down for not doing it.

^^^ That.

Merlin, at 29 I had been on the housing ladder for a short while ( had to buy parents house due to father's bankruptcy). Pension, although I had started one, it was £25.00 a month so no much in it.

It wasn't until my 40s that I really started earning money and until last year I wasn't a ever 40% tax payer.

Terron

Teacher2 wrote: »

A thing which stymied our financial plans was the tanking of interest rates brought about by QE. £100,000 at 5% would have yielded £5000 a year and now makes barely £300 which a rabbit couldn't live on.

How are you getting that little? Surely you don't have it all invested as cash?

adonis10

Terron wrote: »

How are you getting that little? Surely you don't have it all invested as cash?

I second this. Even if it is all invested in cash, you can quite easily get between 1.5% and 5% in various current accounts and regular savers, up to around the 50k mark (possibly more). I managed circa 1k on 48k cash in the last tax year, so ~2%. Nothing to write home about but that would equate to 2,000 on 100k v the £300 quoted. Need to make cash work a bit harder.

Merlin's_Beard

adonis10 wrote: »

It is all relative but don't be too despondent about 34k at 30, it isn't bad when compared to the whole of the working population (I don't have the stats, though). That said, I can relate as I am 34 and on 32k and no real idea of how I can improve that. Perhaps I am destined to be in the 30-35k ballpark for life. I guess it is a question of when do you accept your lot and plod along accepting that you've hit your personal ceiling? Very difficult.


Have you got a detailed budget? If not, I would advise you to do one asap as it may well surprise you exactly what you spend regularly without thinking about it.

No, I'm well aware that I'm better off than the mean - I think average household income is something like £27,000. And sadly, live a fairly frugal life with a You Need A Budget level of budgeting going on already, so I know exactly what goes where and would struggle to save any more without giving up my one big luxury - living without housemates.

And generally, I'd be happy with my lot in life if only my savings rate could exceed the house price growth in my area (which has been ridiculous the last few years) and I could get onto the housing ladder in a non-stabby/smashed car windows area, because any spare money at the minute goes into the house deposit pot and I barely keep up.

Just very depressing after a professional degree (with student loans to match!) and working at a career with long hours to find myself so far behind the curve and still renting, I guess, despite knowing that the people posting here are perhaps not a good example of the average population.