Does money paid into Pension pot count as savings?

Its_all_Dinx

So me and my wife (mainly me) are the boring people and track all income and outcome on a spreadsheet. (12 tabs for months, 1 tab of Taxable Interest, 1 tab for savings, 1 tab for dividends, 1 tab of ISA Interest and lastly 1 tab as my dashboard.)

In the Savings tab, for this tax year I said "well the money I pay into my pension is savings therefore I update this tab". She disagrees and says that we should only count Net Pay and ignore what is paid into pension as that is what will be income when we retire and savings should be from Net Pay only.

I have my nest egg and I do save a bit from Net Pay. What does everyone else think and do I need to consider anything else?

Vitor

The sensible answer is probably to split it:

“Cash savings / accessible savings” = money saved from net pay into bank accounts, ISAs, etc.

“Retirement saving” = pension contributions and pension growth.

“Total savings / wealth building” = both combined.

So the boring-but-correct spreadsheet probably needs one more category, which may be the most MSE answer imaginable.

dunstonh

Broadly speaking, you can put pensions into the investments tab along with stocks and shares ISAs or any other tax wrappers. You should keep savings in the savings tab.

Possibly part of the problem is that your tabs, as they currently stand, are mixing things up.One tab for Savings, but then three tabs for Income.

eskbanker

https://forums.moneysavingexpert.com/discussion/6675581/does-money-paid-into-pension-pot-count-as-savings

Not sure if I'm fully understanding your position here, or the spreadsheet, but if you have a savings tab within a spreadsheet tracking income and outcome then it presumably relates specifically to movements into and out of savings pots, rather than the balances themselves? Are you separately tracking the balances (of savings, pensions, other investments, etc) in another sheet, i.e. are you clearly differentiating between a 'profit & loss' analysis and a 'balance sheet'?

Its_all_Dinx

Thanks for the feedback.

I do track other investments separately and that too I add into my savings. I have not tracked it as profit or loss. Simply. I put ££ into investments this month.

For money paid into pension. I would only add in savings tab the money I put in. So my 5% not the 3% or tax relief.

M aim was to save 20k a year, with a mix of cash from Net Pay and pension contributions.

kimwp

It really comes down to why you are tracking it. If you want to track where your gross income goes, are you also going to track ni, tax, charitable contributions etc?

Personally I track my pension pot (as well as non-pension savings.) These then feed to tabs for my financial plans. My income is only used to calculate my buffer in my current account so i move money to make sure there is sufficient for all outgoings that month.

Ps, where are your tabs for stoozing and bank switches??

kimwp

https://forums.moneysavingexpert.com/discussion/comment/82063346#Comment_82063346

Ah ok. I personally don't see the point - for me, it's how much I have, not what did I manage to add from income, but if this is your aim, then it makes sense to track those things, to see where you are relative to your goal.

SacredStephan

I would only add in savings tab the money I put in. So my 5% not the 3% or tax relief.

Isn't the tax relief included in the 5%?

Its_all_Dinx

https://forums.moneysavingexpert.com/discussion/comment/82063362#Comment_82063362

This is very complicated, but I am up for a challenge to now update my spreadsheet.

I looked into bank switching but as a student many years ago. I opened as many as I could and made good use of the interest free overdraft and all money taken was fixed into ISA. The interest was my spending money back then. I should have closed the accounts not bring used.

My stoozing pot is growing, if I spend on the Credit card. I move that sum into a high fixed account and made sure it pays out when the 0% is about to end. Atom Bank I found was perfect to fix a small £50, also the kids accounts became useful when they mature and to stay within the 1k allowance.

Its_all_Dinx

https://forums.moneysavingexpert.com/discussion/comment/82063468#Comment_82063468

I should have mentioned. I have a 2nd job and it's from that I track what I pay in. The tax relief not at source.

Its_all_Dinx

I just thought of one more.

Should I track my Sharesave payments?