Where to get started

Albermarle

CluelessGuy said:

Albermarle said:

As a higher rate taxpayer the usual way to go is to increase contributions to your pension due to the very generous tax relief ( which might not last forever .
Each £100 going into your pension only cost you £60 . Although you will pay some tax on it when you take it , the tax benefit is still significant . Also the more money you put in at a younger age the more the investments in the pensions have time to grow.
To add to this a £10K pension pot is very small even at your age , so even more reason to go down this route .

Thanks for that, so topping up the % I pay into my current work pension? Or taking out another private pension? 
I maybe wasn't clear, my current work pension is 10k I have 80k in old pensions. 
Maybe consolidating my old pensions into a private one and making monthly contributions to this? 

Where you make the extra contributions depends on :
If you pay contributions at work via a salary sacrifice scheme then it is probably better to do it via this route ( NI savings ) 
Otherwise there is no hard and fast rule . It can depend on the charges for your workplace pension , any new pension and your old pensions ( you could probably resume contributions to one of these if you wanted ) Also the choice of investments within each pension can be a factor for some people.
Often people automatically think their workplace pension must be inferior to some new other pension with a snazzy app , but often workplace pensions are perfectly fine and low cost .

colsten

What are your wife's pension arrangements?

Has your family got provisions in case one or both of the salaries stop?

Alexland

Zorillo said:

I'd be paying £25k a year into my pension and thinking about retiring early.

Yup use pension contributions to get the adjusted net income low enough for child benefit.

CluelessGuy

colsten said:

What are your wife's pension arrangements?

Has your family got provisions in case one or both of the salaries stop?

My wife pays into her work pension from memory she cannot adjust what she pays (5% her and 10% employer i think is how it works)

My wage would cover all essential bills, my wife's would just about do the same (however would maybe need to go back full time) I guess part of the question to do with what to do with the cash,is how much do you leave readily available should either/both of us stop earning.

CluelessGuy

Alexland said:

Zorillo said:

I'd be paying £25k a year into my pension and thinking about retiring early.

Yup use pension contributions to get the adjusted net income low enough for child benefit.

Thanks for that, hadn't actually thought about that and the benefit of then getting child benefit. 

csgohan4

TheAble said:

ranciduk said:

50k = premium bonds 

You'll get a much better return in the stock market. It will depend to a degree on individual circumstances but generally speaking most people don't need 50k in cash sitting around earning peanuts.

Some people need emergency money, if it is locked in shares/Funds which is currently not doing well, that would be self defeating. 

Best to have some money stored away which is easy to access. Although how much is subjective. Some people can put away 1-2 years worth of expenses, some only 1-2 months worth, personal choice.

Albermarle

she cannot adjust what she pays

Are you sure as that would be rather unusual . In any case she can always contribute separately to a new pension , if she wanted to.

s how much do you leave readily available should either/both of us stop earning.

Nobody can really tell you that , you have to do what you both feel comfortable with , linked to how secure you think your jobs are.  However with money matters, it is good not be a reckless spender but being over cautious can damage your financial future as well 

Alexland

CluelessGuy said:

Maybe consolidating my old pensions into a private one and making monthly contributions to this? 

It's usually best to make the additional pension contributions into your workplace pension as some employers operate salary sacrifice (to also save the national insurance) and it can save the need to claim the higher rate tax relief on personal pension contributions back from HMRC via self assessment each year. If you are aiming to avoid higher rate tax and get child benefit don't forget you also need to consider taxable benefits such as car allowance and any bonuses.