People in their 30's - future financial plans?

justme111

probably in another 10 years you would have accrued enough pension to have the same income when you are retired as now when you working So compared to others you are in a great position re pension and the task is not to transfer a bit of present well being into the future but other way round - to make life easier now using the fact that your jncome in retirement is likely to be much higher of you work to SPA than your income is now.

bigadaj

justme111 wrote: »

probably in another 10 years you would have accrued enough pension to have the same income when you are retired as now when you working So compared to others you are in a great position re pension and the task is not to transfer a bit of present well being into the future but other way round - to make life easier now using the fact that your jncome in retirement is likely to be much higher of you work to SPA than your income is now.

Better to use quotes as its not clear who you are referring to, particularly as this is a discussion thread and the OP isn't the only pertinent post.

cns06

I think a lot depends on what kind of pension you have access too.


I don't have any work pension but I am a LTD company owner so I can utilise a SIPP.


However in recent years I have started to worry about when I can access the SIPP so I have now started to concentrate on S&S ISA and property. Still contribute to the SIPP but only rising with inflation now.


I think once you get into your 30s its the last chance for most people to start something of value. Unless you earn a massive salary and can afford to max out a SIPP and ISA in a short space of time. But for most people on the average salary you really do need 30 years of contributions to ensure you have saved enough for a decent retirement.


I don't get anywhere near the SIPP / ISA limit each year but I have got to the point now where growth exceeds contributions. Its a good feeling. We are late 30s now.

bones85

31 (i turn 32 next month) i still live with my parents, work in a supermarket, Wages are 18k a year after tax

Currently doing a savings thing with work where i can buy shares at the end of it which should be my deposit to a house, this deducts £300 from my wages before it even goes into my bank! so i can't touch it
Also have started a pension with work as well

my problem is i'm constantly in my overdraft, and every month i say i'm going to get out if it, it never happens

i guess i still live like i'm in my 20's, drinking (not every weekend) and going on weekends away


So future plans, Get out my overdraft and buy a house, hopefully do both within the next 12 months

fraserkerr

Hi,

I'm 33, have a DC pension pot of £95k so not that great so far. Ideally would like to build this to about £500k by the time I am 60 and retire. I earn £33k per annum and have only £450 in ISA.

adonis10

thatoldchestnut wrote: »

Must say I don't know what to make of the idea that £30k is not a lot of money!

Trust me, if you experienced with the prices we have to contend with down south, you'd understand why 30k is not considered much! Obviously I do not know where you live but am basing that comment on the general 'the south is much more expensive than the north' notion which I don't believe is too wide of the mark.

Alexland

fraserkerr wrote: »

I'm 33, have a DC pension pot of £95k so not that great so far. Ideally would like to build this to about £500k by the time I am 60 and retire. I earn £33k per annum and have only £450 in ISA.

That's a very respectable pension pot for your income and age. With 2.5% growth above inflation for the next 27 years you are probably about 40% towards you target assuming most of your pension is invested in equities.

I assume you have a rainy day fund in cash in addition to your small ISA?

Alex

fiisch

A bit late to the party... 31 and only £10k in my pension pot.

Six months ago, I had <£5k spread across various pensions. Recently gone permanent after a period of contracting, and taken advantage of 5% match to get 20% total per month, so I'm just about to topple the £10k barrier.

Looking to further increase my AVCs once a couple of loans have been paid off, to get maximum tax efficiency, before I return to contracting in a few years.

My salary is decent (I had a very strong negotiating point as the company I was contracting for wanted to make me perm), but my wife works 10 hours a week on minimum wage, so whilst we're comfortable we don't have an enormous amount of disposable income.

I've always had the viewpoint of if I needed money, I'd go out and earn more, but having spent more time on these forums I am currently focused on reducing our eye-watering monthly spend (circa £3.2k / month living expenses)!

Alexland

If your wife is on a low income are you using Marriage Allowance to optimise your income tax? If it is likely to continue have you checked her NI position and considered making contributions into her pension?

https://www.gov.uk/marriage-allowance

I have literally no idea how you would spend £3.2k per month? Is it mostly rent or mortgage repayments? We could afford to spend a lot more each month (possibly 4x more than we do spend) but choose to live on a low cost base and save for the future.

Alex

justme111

spending 3-4 k per month between 2 people is what many people do , nothing extraordinary in it. Just look at the Number thread , about half or evwn most of of contributors plan for 30-40 k a year for a couple which is 3 k a month WITHOUT mortgage/rent expense.
Cars (repairs or new ones even if they are second hand ones), health (insurance , teeth, glasses, private pay as you go), home improvements and repairs, furniture and other bigger ticket items like fridge etc, bigger items for children like birthday parties , trampoline etc; holidays, cosmetic procedures. Of course when we do not have money or it is earmarked for something else like savings for Alexland we do not buy the above stuff or get it cheaper. But spending it on discretiinary items that add to our life is extremely easy - and nice.