Savings, investments and pension plan advice in late 30's

vart400

Hello money savers! It's ben ages since I logged on here and I'm looking for some input/advice on how I'm doing money wise.

Bit of background... late 30's renting from council and living with family member. I work in the public sector and have a LGPS DB pension that I've been paying into for nearly 5 years, I know I should've started earlier but made a mistake. That is the only pension I have had.  
I have a small side income bringing in around £40p/m, this goes into a S/S ISA where I have around £1.5k atm.
I also have around 9 months worth of take home pay in a savings account earning 0%

I was saving up for a deposit for a flat, but life events in the past few years and rising house prices makes me feel that it will always be out of reach. I've looked into the LISA but I don't think it's right for me.

Should I be looking to transfer some of my savings into the SS ISA? 

El_Torro

Your savings should be earning more than 0% interest. Either stick it in a savings account with easy access and some interest or put it in Premium Bonds.

Your emergency fund (aka your savings) should, according to conventional wisdom, be between 3 and 6 months worth of expenses. Having it be 9 months worth of take home pay is a bit on the high side. The 3 to 6 months figure is just a guide though, some people prefer to have more. It really depends on your circumstances.

If you're happy to reduce your savings then sure, stick what you can in your Stocks & Shares ISA. It should perform better than any savings account after all, as long as you are willing to invest for 10 or more years.

maxsteam

vart400 said:

I have a small side income bringing in around £40p/m, this goes into a S/S ISA where I have around £1.5k atm.
I also have around 9 months worth of take home pay in a savings account earning 0%

That's enough for a deposit on a house in many parts of the country. If owning is a more of a priority than staying put, you could consider relocating. Usually the areas with lots of well-paid jobs are also the areas with high prices though.

vart400 said:

Should I be looking to transfer some of my savings into the SS ISA? 

It's your decision. In your shoes, I would do this. The money in the savings account is safe. If you put funds into stocks and shares, you might make a gain or you might make a loss. It's sensible not to put everything into stocks and shares.

vart400

El_Torro said:

Your savings should be earning more than 0% interest. Either stick it in a savings account with easy access and some interest or put it in Premium Bonds.

Your emergency fund (aka your savings) should, according to conventional wisdom, be between 3 and 6 months worth of expenses. Having it be 9 months worth of take home pay is a bit on the high side. The 3 to 6 months figure is just a guide though, some people prefer to have more. It really depends on your circumstances.

If you're happy to reduce your savings then sure, stick what you can in your Stocks & Shares ISA. It should perform better than any savings account after all, as long as you are willing to invest for 10 or more years.

Yeah I was thinking 9 months emergency fund was a bit too much so might put a little into the SS ISA.

maxsteam said:

That's enough for a deposit on a house in many parts of the country. If owning is a more of a priority than staying put, you could consider relocating. Usually the areas with lots of well-paid jobs are also the areas with high prices though.

It's your decision. In your shoes, I would do this. The money in the savings account is safe. If you put funds into stocks and shares, you might make a gain or you might make a loss. It's sensible not to put everything into stocks and shares.

I think I'll stay where I am housing wise for around the next 5 years or so. I'm willing to take the risk with some of my savings to potentially make gains in the future, so putting some more into the ISA seems like a good idea. 

Thrugelmir

vart400 said:

I was saving up for a deposit for a flat, but life events in the past few years and rising house prices makes me feel that it will always be out of reach. I've looked into the LISA but I don't think it's right for me.

Might as well keep your options open. The stock market is better suited for long term investment. 

Albermarle

Your savings should be earning more than 0% interest. Either stick it in a savings account with easy access and some interest or put it in Premium Bonds.

Link to savings account comparison site.

Compare The Best UK Savings Accounts | moneyfacts.co.uk

Alexland

vart400 said:

I was saving up for a deposit for a flat, but life events in the past few years and rising house prices makes me feel that it will always be out of reach. I've looked into the LISA but I don't think it's right for me.

Have you considered buyng with a friend or partner?

kuratowski

In your late 30s, I would open a LISA even if you just put a few quid in.  It keeps the option available (can't be opened after your 40th birthday).  The potential 25% bonus could be a real boost to your deposit fund.
If property prices near you are too expensive relative to your income, have you considered shared ownership?

vart400

Thanks for the replies. I'm single atm and my friends are mainly settled down with families of their own. I'm not too keen on going down the shared ownership route, living in London paying mortgage and rent would be too much on my salary. 
My plan now is to invest in my SS ISA for around 5-10 years and see how it goes. If I put that money into a LISA I feel restricted on what I can spend it on in the future.