What’s the best, next step?

Cam93

I’ll try to keep it all short and simple as typing on a phone is tedious;

25y/o earn 45k per year excluding small bonuses.
23y/o partner earns 16-18k per year

Currently overpay our mortgage by 1k PCM as we’re trying to save for a large house by building our equity/reducing the interest we pay on the total loaned amount

Currently save 600pcm for our wedding due in 2020 which is just set aside in our Santander 123 account for easy access and to bring it from the cash back and interest - this will then become surplus money to invest/save/enjoy after the event

No debts what so ever other than mortgage, recently changed most providers to cut monthly bills etc too as this whole saving money thing gets quite fun!!

I make nearly every purchase possibly on my AMEX card to earn Avois points - I’ve looked pretty extensively at other cards but there’s not much about that really earns anything and bedsides I like how easy the AMEX app is to navigate etc - paid off in full every month to avoid interest 👍🏻

I’ve currently got 10k I’d like to invest, term length unknown but ideally I’d like to put it away and forget about it but access would be nice if possibly but not crucial. I’m prepared to ‘risk’ this money and understand it’s not going to earn overnight - this has led me to looking into van guard 80%, vanguard100% and Nutmeg. The former seeming to be the best for my senario - being new to S&S investing ect it seems wise to let someone else manage it for me. - ideally I’d like to top up this account as/when bonuses become available too, is this possible?

I currently have a basic state pension with my employer which will not improve - maybe a LISA would be a good start ?

Open too all ideas/suggestions. Thanks in advance !

xylophone

I currently have a basic state pension with my employer which will not improve

The state pension is provided by the state - your NI contributions in part fund this.

https://www.which.co.uk/money/tax/national-insurance/national-insurance-and-state-pension-aw98l1j10nh3

You mean that you have a "workplace pension"?

Your employer's contributions (and yours) should be increasing.

https://www.moneywise.co.uk/pensions/managing-your-pension/what-does-2019-have-store-pensions-tax-relief-changes-state-pension

The funds in a LISA will not be available to you until your 60th birthday.

https://www.moneysavingexpert.com/savings/lifetime-isas/#retirement

You might consider a stocks and shares ISA?

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

Zero_Sum

Yes Vanguard allows you to top up as & when

What do you mean by basic state pension with employer?
Do you mean the NEST auto enrolment pension?

LISA could be an option, you can get S&S ones but Vanguard dont do them but do a normal ISA

Cam93

I’m sorry I think I’m completely lost regarding pensions in that case and I’m just confusing myself trying to read up on them when I can’t grasp the basics.

I have an old pension - BlueSkys, from my old employee which I no longer pay onto and isn’t doing anything?

I also have a auto enrolment pension with my current employer which I have no idea what % I pay and how much my employee pays

I now earn 45k per year so assume I will be paying 40% tax on the 5k over 40k. So I’m looking to start a pension, or increase my auto enrolment one? To avoid higher tax and to gain as much back until I can have the money back but I’m not sure what’s the best move for my postition ?

FYI my NI is approx 350 pm and pension approx 150pm - no idea what my employee puts in. Is there anyways I can actually see my pension pot amount?

Dazed_and_confused

I now earn 45k per year so assume I will be paying 40% tax on the 5k over 40k

What makes you think that?

Where are you resident for tax purposes?

Cam93

I’m in Cambridgeshire, I thought once you earn over 40k pa your automatically increases to 40%?

eskbanker

Cam93 wrote: »

I’m in Cambridgeshire, I thought once you earn over 40k pa your automatically increases to 40%?

No, higher rate tax (in England) kicks in at £50K: https://www.gov.uk/income-tax-rates

Zero_Sum

Cam93 wrote: »

I’m in Cambridgeshire, I thought once you earn over 40k pa your automatically increases to 40%?

40% is earnings over £50k
And pensions are tax deductable so you'd be looking at earning about £53k (or there abouts) before youd be on the 40% rate in most cases

Albermarle

I have an old pension - BlueSkys, from my old employee which I no longer pay onto and isn’t doing anything?

How do you know it is not 'doing anything'? Maybe it is growing nicely each year. They should send you an annual statement , if not get in contact with them .

I also have a auto enrolment pension with my current employer which I have no idea what % I pay and how much my employee pays

You could try checking your payslip and all will be revealed !
Anyway most likely you are paying 5% and your employer 3% ( since April this year, before that both figures were lower)

Is there anyways I can actually see my pension pot amount?

When you auto enrolled with your current employer , you should have received some paperwork and a way/password for accessing your pension on line .

Cam93

Okay so I’ve got all the details now.

It’s a smart pension, I contribute 5% and my employer contributes 3% but I can’t see what actually happens with the money?

Basically I’m asking is this a good pension or should I be looking at opening my own private pension/nest egg for retirement, if so what do people recommend ?