40 y/o no pension, work place 1% pension, or ISA, or?
- Thread starter toprock
- Start date
Soldato
Sorry about the pension you have 
£22per week is awful. I could freeze my pensions now and still get 6/7x that.
£22per week is awful. I could freeze my pensions now and still get 6/7x that.
Soldato
I prefer to dump my extra cash into my mortgage, having done some workings it seems far more efficient.
Must admit, I favour individual stocks, but I'm also very independent and contrarian in investing style, a huge numbers geek and probably enjoy slightly more exposure to risk than the average person.
For the beginner who's not got an appetite for furthering their investing knowledge, a fund isn't a bad bet. I'd always encourage people to learn, but many will just want to invest simply and easily, and I can respect that. I'd hate for someone to get bitten buying oil stocks at a peak, see them dive 40% in a bear market, then have to sell up to release the funds for whatever reason, losing out in the process.
Soldato
Thats actually what we are doing but in a few years when its gone the entire mortgage payments which will become available is going into one of my pensions
Associate
You should put as much as you can into a pension as early as possible. I’m 37 and putting in 30% of my salary.
How much does your company put in?
Caporegime
Good grief, that’s a lot. You must be in some fairly unusual circumstances to be able to afford that.
I suspect if you don't have rent or have a low mortgage payment a lot of people could do that if they had the motivation to do so.
Usually in your career you earn way more in your late 30s than you do in your early 20s, i.e you used to get by with a lot less.
Caporegime
I’m in my 30s, but between a mortgage and kids I couldn’t touch 30%! Roll on paying off the mortgage... and get these kids out of the house...
Soldato
- Joined
- 17 Jun 2012
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Late 30s here and don't have a pension either. Had a couple from previous jobs but amount of time spent putting money in will make them next to worthless, plus I've no idea where they are or how to get hold of them.
Will probably end up relying on a mixture of savings, state pension and inheritance.
Will probably end up relying on a mixture of savings, state pension and inheritance.
Soldato
Associate
- Joined
- 7 Sep 2014
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- 1,160
As much as I agree with being sensible about pensions I should say that 20% of will die before taking it, and a much higher percentage will be far too ill to enjoy it. I'm in the camp of putting any extra into your mortgage and getting it paid off.
Soldato
Remember a pension can also act like an insurance policy so if sod and his law does decide to step in and stuff your plans at least it can help out the family still behind.
Permabanned
I'm doing 10% plus another 4% from employer.
Soldato
As always with a retirement thread, there's some serious nonsense posted in reply.
OP, start by looking at your needs and then your means, and then the solutions should be more clear.
If you're genuinely saving for retirement, then the pension is the first option in 99% of cases. Tax relief and employer contribution, in your case, make it compelling.
One of the great frustrations about retirement saving is people doing a pension illustration, not getting the answer they want and abandoning all the great benefits to just do some general saving instead. They should try doing a normal savings illustration without the benefit of tax relief and an employer contribution and see just how much more disappointing the result really is.
OP, start by looking at your needs and then your means, and then the solutions should be more clear.
If you're genuinely saving for retirement, then the pension is the first option in 99% of cases. Tax relief and employer contribution, in your case, make it compelling.
One of the great frustrations about retirement saving is people doing a pension illustration, not getting the answer they want and abandoning all the great benefits to just do some general saving instead. They should try doing a normal savings illustration without the benefit of tax relief and an employer contribution and see just how much more disappointing the result really is.
Soldato
Pensions, one of those things that make me nervous as well on if I made the right decision.
I stopped paying into a pension pot (apart from the state, if such a thing will exist when I hit retirement age!) a number of years ago and pumped all of my money into buying additional properties.
That's my retirement plan, its a gamble so to speak, but if it pays off I will have significant assets when I retire to use as an income (minus mortgage expenses) or as equity to sell/release to see me and the missus through.
As a self-employed expat there is no employer contribution for me, so I need to make as much money as I can and invest it well.
I stopped paying into a pension pot (apart from the state, if such a thing will exist when I hit retirement age!) a number of years ago and pumped all of my money into buying additional properties.
That's my retirement plan, its a gamble so to speak, but if it pays off I will have significant assets when I retire to use as an income (minus mortgage expenses) or as equity to sell/release to see me and the missus through.
As a self-employed expat there is no employer contribution for me, so I need to make as much money as I can and invest it well.