Dolly's OAP Savings

_Dolly_Rocker_

So I'm 41, still in debt and have a mortgage to pay off. 

Need to try and start saving for my OAP days. I'll have a state pension (hopefully) and a workplace pension but I want to start adding to my LISA with the aim to save £32,000 and get a bonus of £8,000 so I'll have £40,000 in savings minimum tucked away. 

I've never been very good with money but I am determined to change that so here's to me being a bit more financially savvy and not being a poor wee old lady when I finally retire!

cloud_dog

It is never too late to start.  

Do you have a partner?

Are you a basic rate tax payer?

What is your current pension position, e.g. DB schemes, or how much in pensions currently?

What are your current income requirements, and how do you think that level will relate to the income required in retirement?

_Dolly_Rocker_

@cloud_dog  - No just me and I am a basic rate tax payer. 

I have absolutely no idea tbh - I'm going to log in and have a look at my pension portal later and see what it says. I mean it's not going to be a great big pension pot. 

I think I'll probably be on roughly same amount with my pensions when I retire that I am now with my monthly wage so just want to be in the best place financially so that I can relax and just enjoy my old age rather than having to penny pinch with everything. 

cloud_dog

As a basic rate tax payer from a financial efficiency perspective the LISA beats a pension, so that is a good choice.

When you get the chance come back and update regarding your pension position.

_Dolly_Rocker_

@cloud_dog - Really, that's great news. Happy with my choice for the LISA. 

I will do with the pension information. 

LHW99

_Dolly_Rocker_ said:

@cloud_dog  - No just me and I am a basic rate tax payer. 

I have absolutely no idea tbh - I'm going to log in and have a look at my pension portal later and see what it says. I mean it's not going to be a great big pension pot. 

I think I'll probably be on roughly same amount with my pensions when I retire that I am now with my monthly wage so just want to be in the best place financially so that I can relax and just enjoy my old age rather than having to penny pinch with everything. 

Getting the same income from your pensions as you earn isn't too bad - after all you should have paid off the mortgage by then, and won't have travel expenses for work. Just need to get / keep any other debt down.

cloud_dog

_Dolly_Rocker_ said:

@cloud_dog - Really, that's great news. Happy with my choice for the LISA. 

I will do with the pension information. 

I forgot to add that (obviously) you cannot pay into a LISA once you reach age 50, so you should then switch to a personal pension for the money.

_Dolly_Rocker_

@LHW99 - I know, if I've understood it properly that is. I honestly have just had my head in the sand in regards to my finances for such a long time. 

I've got some CC debt that I will have PIF by the end of this year and the mortgage will be PIF by 2030 at the latest.

I've got some good plans over the next 5 years to get me in the best place financially that I will have been in ever. 

@cloud_dog - Yeah my plan is to pay into that until 2033. At that point I'll look at a better option for my savings. 

Marcon

OP - looking at your previous posts, you seem have an awful lot of different 'diary' threads which fizzle out pretty quickly. Why not stick to one of those and update it regularly (which will be much easier for you, and more interesting for anyone following your progress),  instead of starting yet another new one?

Forever_Red

What I would say is check what your pensions are invested in. If you've never checked or changed the investments, you'll probably find you're invested in the pension providers default fund, which could be pants.
You've got at least 16 years before you can access your DC pension so there's some time for decent growth if invested in the right funds.

LHW99

And don't panic - you may be late compared to some, but you have plenty of time compared to many, who only start to think a couple of years ahead of time.