What would you do with surplus

Jon5321

Bostonerimus1 said:

VNX said:

Bostonerimus1 said:

1) Pay down high interest debt
2) Save one year's spending into a bank account or cash ISA
3) Contribute to a stocks and shares ISA
4) Make extra mortgage payments.

The OP has no mortgage or debt.

Well that makes things easy then - options 2) and 3) although making extra pension contributions would probably be the most tax efficient thing to do.

Ive decided Im going to contact HR again and ask them to increase my pension again and see were my pension total is in 5 years time. 

I think that is best option for me .

Catplan

Jon5321 said:

Bostonerimus1 said:

VNX said:

Bostonerimus1 said:

1) Pay down high interest debt
2) Save one year's spending into a bank account or cash ISA
3) Contribute to a stocks and shares ISA
4) Make extra mortgage payments.

The OP has no mortgage or debt.

Well that makes things easy then - options 2) and 3) although making extra pension contributions would probably be the most tax efficient thing to do.

Ive decided Im going to contact HR again and ask them to increase my pension again and see were my pension total is in 5 years time. 

I think that is best option for me .

So it’s a work place pension, it’s probably worth finding out what that is as many “default” funds aren’t suitable. Not long ago I had one at a very high risk investment and another in a very low risk group, as they’d defaulted to this due to age when opening. I’ve since addressed this and have both now suited to my risk profile. In my experience it’s worth checking the default is suitable for you.

Jon5321

Catplan said:

Jon5321 said:

Bostonerimus1 said:

VNX said:

Bostonerimus1 said:

1) Pay down high interest debt
2) Save one year's spending into a bank account or cash ISA
3) Contribute to a stocks and shares ISA
4) Make extra mortgage payments.

The OP has no mortgage or debt.

Well that makes things easy then - options 2) and 3) although making extra pension contributions would probably be the most tax efficient thing to do.

Ive decided Im going to contact HR again and ask them to increase my pension again and see were my pension total is in 5 years time. 

I think that is best option for me .

So it’s a work place pension, it’s probably worth finding out what that is as many “default” funds aren’t suitable. Not long ago I had one at a very high risk investment and another in a very low risk group, as they’d defaulted to this due to age when opening. I’ve since addressed this and have both now suited to my risk profile. In my experience it’s worth checking the default is suitable for you.

Yes its a work place pension. What you just mentioned to me is first ive heard of it could you explain it in simple terms so I can understand more better. thanks.

Albermarle

Jon5321 said:

Catplan said:

Jon5321 said:

Bostonerimus1 said:

VNX said:

Bostonerimus1 said:

1) Pay down high interest debt
2) Save one year's spending into a bank account or cash ISA
3) Contribute to a stocks and shares ISA
4) Make extra mortgage payments.

The OP has no mortgage or debt.

Well that makes things easy then - options 2) and 3) although making extra pension contributions would probably be the most tax efficient thing to do.

Ive decided Im going to contact HR again and ask them to increase my pension again and see were my pension total is in 5 years time. 

I think that is best option for me .

So it’s a work place pension, it’s probably worth finding out what that is as many “default” funds aren’t suitable. Not long ago I had one at a very high risk investment and another in a very low risk group, as they’d defaulted to this due to age when opening. I’ve since addressed this and have both now suited to my risk profile. In my experience it’s worth checking the default is suitable for you.

Yes it’s a work place pension. What you just mentioned to me is first ive heard of it could you explain it in simple terms so I can understand more better. thanks.

Within your pension the money is held in investment funds. There will be a choice  of these funds that you can make.
If you do not make a choice ( like 95% of people) the money goes into what is known as a Default Fund. Normally a middle risk, middle of the road type fund.
Often the fund can change relating to your age.
The default fund may or may not be the best choice for you.
I suggest as a minimum that you at least have a look at the pension providers website to read any info about the investment side of the pension .
Feel free to ask more questions!

LHW99

If you decide you don't the fund(s) you are in, most pensions have at least a few which you could consider as alternatives.

If its a pension with hadly any alternatives (eg Nest?) there is nothing to prevent you opening a SIPP or personal pension, and putting money into a fund you do prefer, regularly.

That could have the advantage that you can access the Sipp funds first, and leave the workplace funds to keep growing (or vice versa) when you finally retire.

Jon5321

Albermarle said:

Jon5321 said:

Catplan said:

Jon5321 said:

Bostonerimus1 said:

VNX said:

Bostonerimus1 said:

1) Pay down high interest debt
2) Save one year's spending into a bank account or cash ISA
3) Contribute to a stocks and shares ISA
4) Make extra mortgage payments.

The OP has no mortgage or debt.

Well that makes things easy then - options 2) and 3) although making extra pension contributions would probably be the most tax efficient thing to do.

Ive decided Im going to contact HR again and ask them to increase my pension again and see were my pension total is in 5 years time. 

I think that is best option for me .

So it’s a work place pension, it’s probably worth finding out what that is as many “default” funds aren’t suitable. Not long ago I had one at a very high risk investment and another in a very low risk group, as they’d defaulted to this due to age when opening. I’ve since addressed this and have both now suited to my risk profile. In my experience it’s worth checking the default is suitable for you.

Yes it’s a work place pension. What you just mentioned to me is first ive heard of it could you explain it in simple terms so I can understand more better. thanks.

Within your pension the money is held in investment funds. There will be a choice  of these funds that you can make.
If you do not make a choice ( like 95% of people) the money goes into what is known as a Default Fund. Normally a middle risk, middle of the road type fund.
Often the fund can change relating to your age.
The default fund may or may not be the best choice for you.
I suggest as a minimum that you at least have a look at the pension providers website to read any info about the investment side of the pension .
Feel free to ask more questions!

Thank you. I understand abit more now I will check out the terms on the pension website.