Is this ok instead of saving into a pension?

[avslp11]

Inspired by the thread on pensions that I read just now, I have no pension that i save into despite working on 45k and have been on around that since I was 26, I’m now 33.

My family own four homes and gift money every year around 10k. I save this and so far have 80k in savings and 220k left on my mortgage.

I know it’s not ideal to rely on inheritance but I have always thought that I would PROBABLY be fine. Is this wildly idiotic?

I am in a similar situation to you.

Realistically, I shouldn't need a pension. But out of common sense and generally not wanting to count my chickens before the hatch, I've got a workplace pension. I only started it when I was 34 because I was a stay at home mum until that point.

Why wouldn't you set up a workplace pension? It's calculated pre-tax and your employer contributes, you're turning down 'free' money.

Any financial advisor will tell you similar.

And that is why we need proper social housing.

Part of the problem we are in the sorry mess we are in this country with property (and elsewhere) is the ‘so long as I’m alright’ approach to everything.

No. I really would not take the money for me or my children. It is not mine. My values just differ from yours. I can understand the perspective of other people and I know I am in a minority with my views but I see a society that has become less fair since I was a child and part of that is because people just don’t question where the money is coming from

Apparently the rule of thumb is that if you want to retire at the standard age, and maintain the same standard of living, you need 10x your final salary saved in a pension. Obviously this will vary depending on other sources of income and outgoings, but might give you some idea of how far adrift you are

I’m not against this in principle…

how many siblings and what’s the value?

there is a big diff between 1 sibling and 4 London houses worth 6-7m

vs

3 siblings and 4 houses in the sticks worth £1-1.5m

You should definitely start a pension OP, regardless of the rest of it. Tax efficient and free money from your employer.

You do have to remember that any money that goes into your pension (up to an annual limit) is tax free, so to save £10k a year you only need to put £8k in. Plus as others have said, if you put 5% of your salary into a pension you get an additional 3% (minimum) from your employer and again for every £80 the both of you put in then £100 goes into the "pot". AS this is invested, there's likely to be a decent bit of growth plus the income, which is reinvested so the pot grows even more every year.

Currently the interest you get paid on your savings is very likely to be lower than the interest you're paying on your mortgage, so paying the mortgage off would be better for you. Plus the growth and income of any pension investments, even with the fees allowed for, is likely to be significantly higher than the interest you're earning on these savings.

Find yourself a good Financial Advisor. The initial consultation should be free and fees should only be payable on investments you make through them for pensions. I'm pretty sure they will tell you that having a pension and/or paying off the mortgage will be much more beneficial for your retirement. BTW I was a paraplanner in a previous life, so spent all my working days preparing reports along these lines for clients.

You may be fine but you never know. The houses could be needed to pay for care homes etc. I personally wouldn't rely on it and just think of it as a 'nice bonus' if it works out.

Don’t count your chickens. I am well into my retirement and I don’t expect to get any inheritance from my parents or as it will probably be gone on care home fees. Even if I do get anything it will probably be too late. I am not in the slightest bit bothered about this as I made my own provisions as everyone should try to do.
You need to save into something tax efficient like a pension or shares ISA. It is silly not to take advantage of a work place pension.

Agree with all the others. YABU - you are turning down free money. If you put the 10k into a pension, you would get at least £1.5k from your employer (their employer contribution) and £2k extra from the govt (tax relief). You are turning down £3.5k free money each year by not having a workplace pension.