MSE News: Generation 'not saving for retirement'

in Savings & Investments
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  • rictus123rictus123 Forumite
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    1,000 Posts Combo Breaker Name Dropper
    Well iv followed this thread right through and i am no closer to throwing my money into a pension. Just paid 25% of net income into ISA...thats for long term emergency savings...Will continue paying in 25% and more to try and fill it by end of year, then looking to save up next years allowance by April so can change ISA to one with best rate and put next years allowance straight in...might be better to drip feed it in out a regular saver account but il search about and see when the time comes. Think i will be on at least 2 years salary liquid before i will be buying shares/putting alot into a pension etc. Dont see what would be wrong with retiring at 60 with £200k in bank...would allow £10k a year+interest until 80...with a buy to let or 2 taking in £12k a year...cant see how that wouldnt work. Also with state pension on top of that.
    Work in progress...Update coming July 2012.
  • dunstonhdunstonh Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Dont see what would be wrong with retiring at 60 with £200k in bank

    To aim for £200k in todays terms in cash savings would cost you around 2 to 3 times more than using S&S ISAs and around 3 times more than a pension on a like for like basis.

    You are taking on shortfall risk and inflation risk. Basically it would be totally inefficient and costly.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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