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New Pension
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Pension saving is recommended but your daughter is already doing that and maybe additional savings should be directed at other priorities.Her NHS pension is accrual rate 1/54 per year so if she did the same job for the next 50 years (being 19) she would retire on a pension nearly equal (actually 50 54ths) to her current salary plus the state pension.She should build up an emergency fund, savings for fun (holiday or car etc) use the LISA to the max £4000 per year (if she only wanted to spend half her LISA on property she could keep the rest till 60, but I wouldn’t). Then use rest of ISA allowance to invest. If this money goes into pension later in life then that’s OK it makes no difference if you invest then put in pension or put in pension first. (Presuming the tax treatment of pension stays the same)1
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More than that since it is CPI+1.4% so in theory, it may actually be more than her salary providing it is same salary for 50 years.
But I am not sure, will need to fire up my spreadsheet!2 -
Oh yes ! I always forget that bonus from NHS pension the first years contribution doubles after 50 years of 1.4% increases so final pension is probably worth 40% more than salary.JoeCrystal said:More than that since it is CPI+1.4% so in theory, it may actually be more than her salary providing it is same salary for 50 years.
But I am not sure, will need to fire up my spreadsheet!2 -
Look at whatever fees a personal pension might charge. That's why doing AVC with the NHS scheme may be a better/cheaper option.
But a LISA and saving a deposit for her first home would be good too. Whether it's £50 or £100 will depend on her whole budget and if she has other plans like saving for a holiday, car etc.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Check your state pension on: Check your State Pension forecast - GOV.UK
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Assuming she is already a member of the NHS Pension Scheme and is not a higher rate taxpayer (seems unlikely aged 19!) then I would have thought a LISA is worth considering rather than an addition pension?1
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