Looking for some AVC & Pension advice

TheMTG

ali_bear said:

It is good that you are thinking about pensions at your age. A lot depends on your life plans and how it actually goes. The only problem with pensions savings is they are locked away until retirement, 30+ years in your case. Having money invested outside of the pension makes sense because you will have the flexibility to use it for other purposes as yet unknown. 

Thank you for the contribution.
Mainly got thinking more about pensions due to seeing how my father struggled with debt in his later years of life & how my mother is currently struggling financially with a lack of a pension. Typically I've been good with money but just want to protect myself for any future eventualities.
I do like the idea of the flexibility of outside pension investment but does come with the risk of it depreciating in value but that's the risk I suppose.

ali_bear

TheMTG said:

ali_bear said:

It is good that you are thinking about pensions at your age. A lot depends on your life plans and how it actually goes. The only problem with pensions savings is they are locked away until retirement, 30+ years in your case. Having money invested outside of the pension makes sense because you will have the flexibility to use it for other purposes as yet unknown. 

......
I do like the idea of the flexibility of outside pension investment but does come with the risk of it depreciating in value but that's the risk I suppose.

That depends on how the underlying investment performs. You can invest in the same funds through a S&S ISA (or indeed GIA) as you can in a pension. But choosing the right investment is a whole other subject. 

Albermarle

TheMTG said:

ali_bear said:

It is good that you are thinking about pensions at your age. A lot depends on your life plans and how it actually goes. The only problem with pensions savings is they are locked away until retirement, 30+ years in your case. Having money invested outside of the pension makes sense because you will have the flexibility to use it for other purposes as yet unknown. 

Thank you for the contribution.
Mainly got thinking more about pensions due to seeing how my father struggled with debt in his later years of life & how my mother is currently struggling financially with a lack of a pension. Typically I've been good with money but just want to protect myself for any future eventualities.
I do like the idea of the flexibility of outside pension investment but does come with the risk of it depreciating in value but that's the risk I suppose.

Any investments, whether in a pension or outside a pension can go down as well as up.
However in the long term ( > 10 years) the general trend has always been up.
This assumes the investments are mainstream and diversified.

Yorkie1

The security of a council rental is very different from the risks in a private rental, so that does allay some of the underlying reasons for people suggesting you get on the property ladder.

Eldi_Dos

TheMTG said:

Emmia said:

Given you have no plans to buy a house, where are you living at the moment?

Parents? Renting?

Personally, as your pension arrangements should provide you with a good pension without AVCs I'd probably think about buying somewhere to live, pay off the mortgage and then you don't need to worry about whether your future pension will cover your rent.

Thanks for your contribution.
Inherited the lease on my council house following my father's passing last year. Rent + tax etc is approx £515 per month with single occupancy so for where I am in life it's comfortable. On the other side to that, property prices where I live have risen a fair bit with me living in a Tourist hotspot & the popularity of Air BnB. Therefore, with a mortage and savings I'm priced out by £20k/£30k typically and I have seen properties selling for sometimes £50k+ over listed price. 
Only position I could see myself purchasing a property would be if I were to have a partner and we bought one together.

There is increasing resentment and concern around how Air BnB and other BTL second homes affect young locals ability to get on the housing market or indeed secure decent accommodation.I can only see more calls for regulation that will make them less attractive,especially for those leveraged.
It has been quite noticable the protests in several places around the Mediterranean and it probably is a vote winner so every chance there could be calls for change in your local area.