Pension options for newly employed

Ninetails

kidmugsy wrote: »

Yorkshire Building Society does a two year regular saver for up to £500 per month. Only 2% interest, but at least the money would be available if she finds she wants to buy property, or - for example - needs to buy a car so that she can get to some new job she might get.

Thank you, will have a look.

Ninetails

xylophone wrote: »

You indicate that her net salary is £1500 a month and that she has TSB/Nationwide/First Direct current accounts.

She also has a LISA and an ISA.

The LISA/ISA are fully subscribed for this tax year?

She is already saving £550 a month into the NW/FD Regular savers?

In addition to this she wants to save an additional £500 a month?




I am assuming that your daughter is at most in her early twenties - the thread concerning the " 25% withdrawal trick" largely related to those over 55 with no relevant earnings who would contribute £2880, wait for tax relief of £720, take the tax free PCLS and then draw down the balance probably also eventually tax free because it came within their personal tax allowance.

If your daughter wishes to make contributions to a pension over what she is currently contributing then she could do so but if she is hoping to buy a property (or even a car) well before retirement age, then increasing pension contributions would not seem to be a priority?

She's living at home, so no real expenses. Thanks for clarifying the above re: over 55s.

Thanks all, maybe we just keep in interest accounts for now.

kidmugsy

Ninetails wrote: »

Thanks all, maybe we just keep in interest accounts for now.

Fine, but don't overlook xylophone's implication that filling up a LISA might be a good thing to do.

There's another high interest wheeze: she could save into a Help to Buy ISA in addition to the LISA.

atush

Ninetails wrote: »

Good question. As she is young and still at home, just want her to get into the habit of saving and not splurging (too much)

So employers pension, putting in enough to get their max contribution.

Save an emergeny fund in cash of 6 months outgoings at least. More for her if she doesnt have large outgoings.

HTB isa or Lisa, and S&S isas afterwards.

I hope you are charging her some sort of rent, to cover the costs of keeping her