The 'We're saving for a deposit' thread

Pocketsaver

I'm 24 paying 11% into my pension with my employer contributing 22% and I am on a career average scheme. It's a lot of money but hopefully worth it. I have never seen the money either so how can I miss what I never had
Managed to save £711.04 last month. It could have been more than double that but I made the final payment for my trip. Grand total is now £23,851.78. End of year target is £25k.

What is everyone's end of year target?

J_i_m

As per my signature

johannalf88

We don't have one. The same amount of money is saved each month, so it wouldn't be much of a target. I could try n put a few extra £a a side (I do occasionally) but as we have birthdays and Xmas coming I know I will not for November/Dec.

eviekins

Total is currently £61,450
Didn't have a target but was hoping to save £15,000 this year - looks like I'm gunna be about £500 short though.

LibertyBelle

Hi, first post on here!

Was hoping to save £8k by Sept 2014 but having thought about it we may need a 3 bedroom house which takes us up to £140k terriority or potentially £240k

Multipliers will be fine - can get up to that much but will need at least a 5% deposit and maybe a 10% one. So I think aiming for £14k this time next year is better.

I've just upped my saving amount to £550k eek! and I've now got £2220k in the bank, so on track for the £8k - now thinking what I can sell/save/scrimp on to try and save another 2k on top of that (my partner comes into an inheritance and will have £2k to contribute). I've also asked him to think about saving more, but he doesn't earn as much as me.

To the poster who said most of their peers get help - mine do too, a lot of people only have houses due to the bank of Mum and Dad. That said, being able to save so much probably makes me and partner pretty lucky too. (tho we won't get any help from either of our sets of parents).

I'm also saving into a pension - I save 7% and my employer gives 4%. As is my partner. Thing is, pension assumes you will have a house on retirement - so you've got to do both really.

tara747

Welcome, LibertyBelle!

squeeks

LisaJane wrote: »

I have a local government job, so have been paying into that pension since I started full time work 4 years ago. I think it's about 6% and my employer matches it. OH has a similar arrangement in the architect firm that he works for. I think it's very important to have some sort of provision for your pension. Perhaps once OH and I have a few more years of life under our belts, we will examine this more carefully, and perhaps look to doing something else to boost our pension pot!

I recently hit my saving goal and consequently saved nothing last month, which was a little over indulgent... Saving more never hurts.

Reviewing everything, I am a little frustrated that I am in a position where my pension pot is now enough to buy a house outright but I can't get at it, so I am left wondering if I made the right choice putting into a pension while trying to save.

Of course it isn't quite that simple, as I have tax relief and employer contributions going into a pension pot that I would not have had otherwise.

On the plus side if I could get at the pension, it would make financial sense to get a mortgage as the pension has done well for itself this year, and mortgages rates are comparatively low.

It is just a lot of money to borrow and I think I would rather be debt free when possible, rather than having lots of debt offset by some fantastic (or not so fantastic) performing investment.

LibertyBelle

I think you need both - you need to be investing in a pension now to build up enough to support you in retirement - you need it to be invested and get the return on the investment in order to have the right amount at the end.

However, pensions assume that the level of income you need will not include rent or mortgage payments i.e. you've paid the mortgage off. I actually think this is pretty unsustainable given the rise in house prices and the seemingly limitless appetite for house price rises without building many more to bring down the price - I imagine over the next 20 years mortgages will get larger and larger but wages will stay largely flat (compared to mortgages) - mortgage terms getting longer and people paying into their mortgage after they've retired.

Unless the government wakes up and starts making it easier to build houses! We can but dream.

debrag

Not sure when we will get to start saving for a deposit, but we don't have an end date in mind. As long as we can find a nice rental till then we are fine, though would like to have something before I'm 45.

squeeks

LibertyBelle wrote: »

I think you need both - you need to be investing in a pension now to build up enough to support you in retirement - you need it to be invested and get the return on the investment in order to have the right amount at the end.

However, pensions assume that the level of income you need will not include rent or mortgage payments i.e. you've paid the mortgage off.

I don't think a pension makes any assumptions about your housing situation once you retire. It is just a pot of money / allowance (for the final salary people) and it is up to you what you spend it on.

It is only ever a problem, if you don't have enough to support your life style, be that living in rented accommodation, owning a house or living out your dotage in the penthouse of the ritz with the butler.