Doing the right thing

in Auto-enrolment
6 replies 155 views
I pay the min into my auto-enrollment at the moment. Employer the same.   Looking to increase this 6-12 months for £500 pm going in.
I also have a Lifetime ISA that I am not putting in as I am unsure what to do.   Put the full £4k in getting the £1k from HMRC- no doubt this will be changed.   OR just throw it allinto the auto-enrollment?
Revied my money and I am indeed better than I thought- never check bank statements- idiotic I know.     I could in 8 months put away £800 pm- birthday and XMas more-depending.  
Best to keep at LISA then use the rest for auto-enrollment?


Replies

  • LHW99LHW99 Forumite
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    Put the max into the pension that will get the max employer contribution (some will increase theirs if you increase yours), and then the rest into the LISA perhaps?
  • AlbermarleAlbermarle Forumite
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    If you check this link , there is a detailed comparison of the pros and consa of Lisa vs pension.
    https://www.moneysavingexpert.com/savings/lifetime-isas/
    scroll down until you reach point 2 under the LISA for retirement savers section 
  • Buzzard1985Buzzard1985 Forumite
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    Thanks,
    So if I put £4,000 into my pension like a LISA. I still get £1000?    If so make sense to drop the LISA and just pour into the pension.
    Putting aside what I already pay in and employer-which is the min and they aint moving on that. I Dare say if not compelled by law there wouldn't be a pension scheme.
  • CKhalvashiCKhalvashi Forumite
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    Yes, but the income from the LISA will be tax free later on too. You also have the ability with the LISA to take the money earlier than with a pension, enabling more flexibility.
    "I kada sanjamo san, nek bude hiljadu raznih boja" (L. Stamenkovic)

    Please note: All posts on Coronavirus legislation refer to England unless specified otherwise.

    I can spell, my iPad can't.
  • Buzzard1985Buzzard1985 Forumite
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    In my 30s and stressed about this- my manager will be working beyond state pension.   I don't NOT want to be that person.
    I should by the time I am 50 have three houses/flats with no mortgage being rented out.  Probably sooner as grandparents have a will and he has hinted to relax.  Just I have obsessed about pension/assets to abort having to work sooner the better.


  • CKhalvashiCKhalvashi Forumite
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    Remember to look at a diverse range of assets though. Property is a good investment for sure, but from your username I'm guessing you're a few years younger than I am. This means equities (shares) slowly moving into bonds and property in likely 15-20 years (there's a lot of time to make up any short term losses) in diversified sectors. Picked carefully based on numbers and reading balance sheets etc, you should be able to do reasonably well.

    Property has an asset behind it, however also generally is one of the lowest yielding assets. This means that this is a better option when you are closer to retirement than you are now.
    "I kada sanjamo san, nek bude hiljadu raznih boja" (L. Stamenkovic)

    Please note: All posts on Coronavirus legislation refer to England unless specified otherwise.

    I can spell, my iPad can't.
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