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  • FIRST POST
    • 1adf1991
    • By 1adf1991 6th Aug 18, 10:13 AM
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    1adf1991
    27 and pension planning help???
    • #1
    • 6th Aug 18, 10:13 AM
    27 and pension planning help??? 6th Aug 18 at 10:13 AM
    ok, so this is my first post and im looking for advice from all you money saving and pension experts on here.

    im 27 years old, have two jobs and two pensions.

    with my main job i have a NEST pension...
    pot size: 500
    total monthly contributions: 50ish raising to just over 80 in April.

    my 2nd pention is a fire service pension ive been paying in for 4 year. however im only a retained firefighter so my wage is around 6000-7000 a year so not expecting this pention to ever be worth much, maybe just a little top up.

    now my question is im ready to top up an extra 50 a month now (will increase in near future), do i put it straight in my NEST pension pot (the one i have to use for work) or are there better pensions out there, even tho its a small monthly amount?

    thanks in advance for all the help.
Page 1
    • atush
    • By atush 6th Aug 18, 10:51 AM
    • 16,999 Posts
    • 10,621 Thanks
    atush
    • #2
    • 6th Aug 18, 10:51 AM
    • #2
    • 6th Aug 18, 10:51 AM
    my 2nd pention is a fire service pension ive been paying in for 4 year. however im only a retained firefighter so my wage is around 6000-7000 a year so not expecting this pention to ever be worth much, maybe just a little top up.
    This is aI think still a DB pension. so keep paying in, it will be worth mroe thn you think come retirement.

    Second your 50/month. The problem with Nest is that it isnt great for variety of funds to invest in. It is pretty basic. But it is fine for you now as you have so little in it. Once you can save a bit more, opening a PP or Sipp might be a good idea.
    • 1adf1991
    • By 1adf1991 6th Aug 18, 11:01 AM
    • 4 Posts
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    1adf1991
    • #3
    • 6th Aug 18, 11:01 AM
    • #3
    • 6th Aug 18, 11:01 AM
    thanks for the replay.

    Im not going to stop my fire service pension. as its always going to be a nice bit extra, that pays well for what i put in.

    so put the extra 50 into nest for a while. ill be re evaluating, what i save in 6 months time when im 28. will look to up my monthly contributions to around 75 - 100 then. but until then ill keep building up my nest pension pot and ill do some reading into another pp or sipp for the futhur i guess.
    • atush
    • By atush 6th Aug 18, 11:38 PM
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    atush
    • #4
    • 6th Aug 18, 11:38 PM
    • #4
    • 6th Aug 18, 11:38 PM
    And look into investing as well. Here, and Monevator are good places to start. A good start would be with a global tracker.

    Cheap and cheerful and all you need to start, esp as you have a DB pension too.
    • Smellyonion
    • By Smellyonion 7th Aug 18, 5:54 AM
    • 98 Posts
    • 59 Thanks
    Smellyonion
    • #5
    • 7th Aug 18, 5:54 AM
    • #5
    • 7th Aug 18, 5:54 AM
    How much are the employers contributions?

    I would imagine that the fire service pension would be better to overpay into.
    • JoeCrystal
    • By JoeCrystal 7th Aug 18, 7:24 AM
    • 1,412 Posts
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    JoeCrystal
    • #6
    • 7th Aug 18, 7:24 AM
    • #6
    • 7th Aug 18, 7:24 AM
    How much are the employers contributions?

    I would imagine that the fire service pension would be better to overpay into.
    Originally posted by Smellyonion
    I agreed, are there any way you can build up Additional pension?
    • 1adf1991
    • By 1adf1991 7th Aug 18, 7:37 AM
    • 4 Posts
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    1adf1991
    • #7
    • 7th Aug 18, 7:37 AM
    • #7
    • 7th Aug 18, 7:37 AM
    How much are the employers contributions?

    I would imagine that the fire service pension would be better to overpay into.
    I wouldnt have a clue at what they pay in i think i pay in the standrard 11 or 12%. but my wage varies so much month to month.

    ill have to find out how id go into overpaying into this pention over the nest then.

    dose it matter that ill probably be leaveing the fire service in my late 30s so probably only have 10 to 15 years, worth of pot and contributing?
    • Smellyonion
    • By Smellyonion 7th Aug 18, 8:53 AM
    • 98 Posts
    • 59 Thanks
    Smellyonion
    • #8
    • 7th Aug 18, 8:53 AM
    • #8
    • 7th Aug 18, 8:53 AM
    I wouldnt have a clue at what they pay in i think i pay in the standrard 11 or 12%. but my wage varies so much month to month.

    ill have to find out how id go into overpaying into this pention over the nest then.

    dose it matter that ill probably be leaveing the fire service in my late 30s so probably only have 10 to 15 years, worth of pot and contributing?
    Originally posted by 1adf1991

    Shouldn't matter at all. They're usually tied to inflation so if 10k is in a pension, in 30 years time if its 60k or 16k due to inflation, it'll still buy 10k worth of goods as it would have done.


    You need to look into which pension contributes the greatest amount for your increase in payments and look at when you can claim, whether you can withdraw a lump sum etc.


    If none offer at least a 25% increase on your increased contribution. Eg. you overpay 50, they will over pay 12.5. Then consider the Help to Buy LISA.
    Last edited by Smellyonion; 07-08-2018 at 4:41 PM.
    • atush
    • By atush 7th Aug 18, 11:00 AM
    • 16,999 Posts
    • 10,621 Thanks
    atush
    • #9
    • 7th Aug 18, 11:00 AM
    • #9
    • 7th Aug 18, 11:00 AM
    Also consider when you will hope to retire.

    Little point in paying for added pension, then taking it early and reduced
    • crv1963
    • By crv1963 7th Aug 18, 6:32 PM
    • 387 Posts
    • 905 Thanks
    crv1963
    Hi OP,


    Find out if you can pay extra into the Fire Service pension firstly, if you can then do because as DB pension and underwritten ultimately by the Govt, it will under current terms be worth more to you and be indexed linked.


    Then a LISA as although the rules will certainly change you may not open one after 40, which at that point you could divert what you're paying into the FS pension into that so building a pot that even if you don't know what to do with now you will by the time you can draw it.


    Then look at the NEST pension- is it salary sacrifice? Will employer match extra contributions? If so to what amount or percentage.


    Then look at all of the above and decide which is your best choice, have you registered so you can alter your fund choice/ view your saving in the NEST pension? If so decide your risk level - if I was 27 I'd go for 100% equity funds and review age 40-45.


    Good Luck
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • 1adf1991
    • By 1adf1991 7th Aug 18, 6:53 PM
    • 4 Posts
    • 0 Thanks
    1adf1991
    Hi OP,


    Find out if you can pay extra into the Fire Service pension firstly, if you can then do because as DB pension and underwritten ultimately by the Govt, it will under current terms be worth more to you and be indexed linked.


    Then a LISA as although the rules will certainly change you may not open one after 40, which at that point you could divert what you're paying into the FS pension into that so building a pot that even if you don't know what to do with now you will by the time you can draw it.


    Then look at the NEST pension- is it salary sacrifice? Will employer match extra contributions? If so to what amount or percentage.


    Then look at all of the above and decide which is your best choice, have you registered so you can alter your fund choice/ view your saving in the NEST pension? If so decide your risk level - if I was 27 I'd go for 100% equity funds and review age 40-45.


    Good Luck
    Originally posted by crv1963
    thanks for the reply. im looking into the the paying extra into the fire service pension. would i do this as a salary (wage) sacrifice or just a direct debit or standing order?

    i know my boss wont contribute any extra with my NEST pension, so i know, NEST is probably now my least desireble option.

    ill get reading up on LISA to find the best one as a back up / very small pot, till i leave the fire service. then switch to paying into this.

    • crv1963
    • By crv1963 7th Aug 18, 7:29 PM
    • 387 Posts
    • 905 Thanks
    crv1963
    If you can speak to the FB Pension Officer, ask about how you can increase the pension/ buy additional service. They may suggest a way open to you, also the FBU would have someone who'll know, maybe at Regional Level so worth asking there. Or google increasing UK Fire Service Pension?


    Start a thread on here- how to make extra contributions to Fire Brigade Pension? Maybe someone has already found out or done it.


    Any contributions would come out before you get your take home pay probably so you may need to watch that it you need the income counted towards a mortgage application.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • charliehelyes
    • By charliehelyes 8th Aug 18, 3:40 PM
    • 9 Posts
    • 1 Thanks
    charliehelyes
    you should keep your current work place pensions as your employer is also making contributions. However you should consider opening up an additional SIPP(self invested pension) to top it up. The government will add what essentially amounts to a 25% bonus to anything you pay in(tax relief). If you pay in 100 a month the government will add 25 in tax relief. I am 29 and did not have any workplace pension untill last year so I pay money into my SIPP to catch up on the years I was saving nothing.
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