Financial advice for pensions/savings

FelidaeUK66

squirrelpie wrote: »

Does he have any pensions or other assets elsewhere from the time before 2012?


Has he paid NI for every year since he came to the UK?

Sorry, see separate reply just posted!

FelidaeUK66

Spreadsheetman wrote: »

What is your SP projection? Will you get the full amount?

How much SP is your husbands projection?

Yes, I'll get full amount, hubby won't as he's only paid NIC from 2012 for about 4 years max. See post in response to squirrel.

JoeCrystal

FelidaeUK66 wrote: »

Yes, I'll get full amount, hubby won't as he's only paid NIC from 2012 for about 4 years max. See post in response to squirrel.

Sixteen years NI still works out as £4,000 per year or so. As your goal is £20,000 a year, it does go some way towards to overall goal.

Spreadsheetman

JoeCrystal wrote: »

Sixteen years NI still works out as £4,000 per year or so. As your goal is £20,000 a year, it does go some way towards to overall goal.

Yes, my hand-wave leaves £7.3kpa to find, so a pot of circa £133k plus the existing £50k. Maybe £9k into pensions yearly should do it assuming not great returns to be safe.

FelidaeUK66

Do these figures relate to my situation, sorry - not 100% clear. And if so, that's £9k a year extra to contribute to pensions? £750 per month? That's not doable for us.. I'd need another job paying £10k extra :-)

Spreadsheetman

FelidaeUK66 wrote: »

Do these figures relate to my situation, sorry - not 100% clear. And if so, that's £9k a year extra to contribute to pensions? £750 per month? That's not doable for us.. I'd need another job paying £10k extra :-)

Yes - 15 years to save assuming low growth at inflation rate only to be safe. Then drawing 4% of pot annually as the sustainable rate.

Contribution will only need to be 80% of £9k (£7.2k) as the tax relief makes up the rest.

squirrelpie

No, he's not got all years - about 4 only I think, so if he works til 67 he'll have 16 years.

I think it will be worth paying for the other years, but I don't know if it's possible or even if it will help for sure. Somebody more expert can probably clarify.

LHW99

Could your husband pay any additional years of NI (not sure how that would work for a non-UK person)? if so it would increase his pension provision and reduce the amount extra that needs to be put aside - its usually good value in terms of income versus cost.


(oops crossed with Squirrelpie)

FelidaeUK66

So for £7.2k pa that means we would have to contribute an extra £600 per month to a pension for the next 15 years?

Would these savings be better than buying extra National Insurance for his state pension,as we definitely can't afford to do both.

Thanks

[Deleted User]

Personally, I would try to avoid annual IFA fees like the plague. You could read a few books and educate yourself thus avoiding up front fees too. If not, ask the advisors if they can provide a simple cheap solution which won’t require annual “advice” to maintain and does not have any hidden fees or penalties.

After you select investment vehicles and decide on how much you need to contribute, stick to the plan whatever the weather. Write it down up front. Focus on saving and contributing to your investment.

You need to be ruthless in maximizing annual contributions to your investment and minimizing investment costs. These are the only factors entirely under your control.