Thoughts, advice etc. on sorting out my pension-saving situation

TiredDonna

Hi, I'm trying to get my head around my pension situation. I'm worried that I haven't had my eye on the ball and I've been saving too little for years.

I am nearly 39. My pension fund is £45k. I earn about £2400 per month (have just gone part time and am waiting for my tax code to settle down so I can figure out what my take home will be). I pay about £100 per month in to my workplace pension and my employer pays about £200.

I have a small amount in a teachers' pension too.

Any feedback on this situation and/or advice?

kidmugsy

TiredDonna wrote: »

I've been saving too little for years.

I am nearly 39. My pension fund is £45k. I earn about £2400 per month (have just gone part time and am waiting for my tax code to settle down so I can figure out what my take home will be). I pay about £100 per month in to my workplace pension and my employer pays about £200.

(i) If your employer offers salary sacrifice, grab some more pension. If he will match more than your £100 p.m., then increase your contribution to maximise his.

(ii) You are under 40, so open a LISA even if for only a small sum - that way you'll reserve the right to subscribe to it until you're 50.

(iii) At what age will your TPS pension pay out? What annual pension do you expect from it?

TiredDonna

i) I've got a bit more info. My employer pays 8% whatever I pay. I am paying 4% which is the minimum.
ii) I'll look in to LISAs, I thought that they were for saving for your first house (and I've just paid off my mortgage).
iii) Not a clue about my Teachers Pension, I'll have to look in to that. I only taught for about 10 years from my twenties, so not expecting much. Perhaps I'll go back though at some point.

Really appreciate you taking the time to reply, thank you.

TiredDonna

Wow, just read up on LISAs! Thank you again kidmugsy!

JoeCrystal

TiredDonna wrote: »

i) I've got a bit more info. My employer pays 8% whatever I pay. I am paying 4% which is the minimum.
ii) I'll look in to LISAs, I thought that they were for saving for your first house (and I've just paid off my mortgage).
iii) Not a clue about my Teachers Pension, I'll have to look in to that. I only taught for about 10 years from my twenties, so not expecting much. Perhaps I'll go back though at some point.

Really appreciate you taking the time to reply, thank you.

10 Years in the Teacher Pension scheme is certainly worth something! Worth a check I think. I think it would be a nice surprise!

barnstar2077

@TiredDonna - Sorry, just wanted to say that your user name made me smile

I have made retiring early a priority, because to be quite honest, I'm feeling pretty tired too!

TiredDonna

Thanks JoeCrystal, that motivated me to finally attempt logging in and taking a look. I am surprised at how much is in there and how much I would get.

TiredDonna

Thanks barnstar,

LHW99

Good for you OP starting to look at this now. You may not have started as early as possible, but are well ahead of those who don't think about pensions until retirement is knocking on the door.

atush

ii) I'll look in to LISAs, I thought that they were for saving for your first house (and I've just paid off my mortgage).

I would put more into your pension. It looks like you made your mtg a priority over pensions int he past, which with the very low rates isnt always th best idea. So you have some catch up to do.


But 10 years in the TPS is going be a nice base to be working from. call them up and ask the current projected value and come back.

xylophone

https://www.teacherspensions.co.uk/members/working-life/deferring-your-pension.aspx

You can download the guide for deferred members above.


See page 21 re registering for on line access.