Trying to save 100k

elkiedee

Interest cash ISAs isn't taxed (2 x £30 a month is £720 a year if the rate stays the same), and in addition, now, you have a personal savings allowance as a basic rate tax payer of £1K in interest (and that's not including that £720). If you're saving monthly, you can get some interest rates that are slightly more over a year on a Regular saver account than for an ISA - most limit the monthly deposit - for some of the money - and you won't have used all your ISA allowance either way. After lots of rises over the last year, rates on some savings are beginning to drop a bit. 

jimjames

richpoortyke said:

The house option would be to live in. Private rentals can be insecure and although I've been lucky so far I'm aware buying a house outright would give me more security in old age.

Any reason you're not buying a house now? If you need it to live in then putting all the money you pay in rent towards a mortgage would hit your target sooner and leave more for pension.

richpoortyke

The rent where I am is currently very reasonable. I doubt I would be offered a mortgage based on my income and with the interest rates as they are I'm not sure if that would be wise. I looked into the pension and something called annual pension at NPA says estimate of just under 10k. 

eskbanker

richpoortyke said:

I looked into the pension and something called annual pension at NPA says estimate of just under 10k. 

Is that your state pension entitlement or your workplace one?  I'm assuming it's the former if you've only recently started paying into the latter, but the key things to check with a state pension forecast are the difference between what you're currently entitled to (based on contributions up to April 2023), what the maximum is by SPA, and whether you're projected to close that gap over that period, the alternative being to make voluntary contributions, which are typically very cost-effective.

richpoortyke

I checked re the state pension and it says I should get full pension if I work 10 more years. The one I mentioned previously is the workplace pension. Does this not sound right? I'm just reading off the document they sent me

eskbanker

richpoortyke said:

I looked into the pension and something called annual pension at NPA says estimate of just under 10k. 

richpoortyke said:

The one I mentioned previously is the workplace pension. Does this not sound right? I'm just reading off the document they sent me

Difficult to comment in isolation, but it seems optimistic to expect to generate an annual pension income of £10K from low and belated contributions?

richpoortyke said:

My income is about 27k gross. So take home is just under 1800 pm. I never paid into a pension due to struggling to manage on my previous lower income but started paying into one about 5 years ago.

Hoenir

richpoortyke said:

 I rent my property but have no debts to anyone.

After tax is accounted for. Does the net income more than cover your rental costs, and also provide for a reserve  to cover future maintenance expenditure. 

elkiedee

Is 10K estimate on workplace pension scheme based on the current retirement age? - 67 - and OP has mentioned earlier in the thread that being 15 years away now.

eskbanker

Hoenir said:

richpoortyke said:

 I rent my property but have no debts to anyone.

After tax is accounted for. Does the net income more than cover your rental costs, and also provide for a reserve  to cover future maintenance expenditure. 

OP's reference to renting is as a tenant not a landlord....