How do I research the best way to save for old age?

alison6692

Hello x

I have started my maternity leave and one of my dreaded jobs is to sort out hubby's pension. I am a nurse and have a good NHS pension so am sorted.

Hubby has a private pension that he pays £150 into every month - no contributions from work. When we see the final retirement figures they are really depressing and I need to know how I can work out if continuing to pay into the pension is the best option or if we should pay into an ISA or find an alternative method of saving for our future ( for example putting the money towards the mortgage, etc).

Hubby is 29.
We have a a large loan we are paying off and I am going back to work part time so we cannot afford to put anymore money towards pension contributions.

Can anyone suggest where I start finding out the information I need.

Thank You so much

Alison x

dunstonh

When we see the final retirement figures they are really depressing

There are many different ways to project the end figure. You need to take them in context and decide if they are overstating or understating the real potential and final figure.

Level premium plans that use SMPI basis illustrations tend to show low projections because they assume you will pay the same amount for the whole period with no increases. Plus they deduct 2.5% p.a. for inflation.

I need to know how I can work out if continuing to pay into the pension is the best option or if we should pay into an ISA or find an alternative method of saving for our future ( for example putting the money towards the mortgage, etc).

If you pay the same amount into an ISA you will get identical performance as the same funds are available on pensions as on ISAs. That just leaves tax efficiency and charges to consider as well as investment choice.

EdInvestor

Have a look at the ISA vs pensions thread, covers most of the issues:

http://forums.moneysavingexpert.com/showthread.html?t=375217

alison6692

Thank you both - I have been away unexpectedly so have not have time to get online. I will have a proper nosey at your replies tomorrow. Thanks again.

Yes Ed I did have a read of the ISA vs Pension thread and although very useful I still found the whole thing very confusing. ha ha

Alison x