Pension help!

[BrownStripePJ]

I'm 37. Married. No kids.

I never had a pension until the auto enrolment Workplace pension started in 2014. ( I'm kicking myself for not doing something sooner!!)

I have a cash ISA with 25k (sometimes dip into it for buying cars and holidays etc)

Mortgage will be payed off in 6 years.

I logged into NOW pensions and there's only £5k in there!!!!

there's nothing to indicate that it will go up either. It seems more like a bank account.

Me and employer both pay min contributions (on "part" of my salary)

I've always earned a similar amount to my husband and he has £37k in his Pension (Scottish widows) so his seems to be actually growing.

So now I'm panicking

1. am I allowed to move my workplace pension to a different provider ? Or does it have to be the one that my workplace has chosen?

2. can I insist my employer pays on full salary or is it their choice?

3. can I keep the WPP and also set up a private pension?

In my situation would you set up a private pension or some sort of investment ?

And would you go for a low, mid or high risk strategy?

I am planning on seeing a financial advisor but would like peer input before I see one

Thanks so much

How much are you really expecting? You've only been paying a small amount since 2014. At your age you probably I've paid in my whole life and will still need the state pension to supplement it. You probably need to put in about 40% of earnings to catch up to someone whose been paying since they were 23.

Put 40% into the workplace one or a private one or a sipp?

1) am I allowed to move my workplace pension to a different provider ? Or does it have to be the one that my workplace has chosen?

Yes, some allow a partial transfer. Another scheme may not be lower cost or offer better funds, so may not be worth doing at this stage.

2) can I insist my employer pays on full salary or is it their choice?

No, your employer decides if they use full earnings or Qualifying Earnings. However you could ask them.

3) can I keep the WPP and also set up a private pension?

Yes. You could have your own personal pension, your own SIPP, or indeed another workplace pension if you had another job.

In my situation would you set up a private pension or some sort of investment ?

I would look at fund selection and fees of the workplace pension. I would choose the most suitable fund(s) based on cost, past performance and global diversity.

And would you go for a low, mid or high risk strategy?

High. 80-100% global equities. Diversification across the world.
Look for funds like FTSE Global All Cap, MSCI World.

What is your ISA invested in? Are you using global funds for that, or well diversified funds of funds such as Vanguard Life Strategy range? What risk level are you using for those?
Do you have some cash buffer somewhere else such as an interest paying current account?

Useful podcast/videos: www.meaningfulmoney.tv
www.moneytothemasses.com

Thanks so much @nannynick lots there for me to research this weekend. Really appreciate you replying to each question. Thank you.

It's only a cash ISA. Went to the bank to get advice about changing it to a stocks and shares one but they didn't offer any help and said to download the banking app to change ISA. When i asked about high interest monthly sharing accounts they said there arent any.

Hi Sam. There is no transparency at all with now pensions. I've emailed several times.

They/you can't tell me how much I've oaidnin each year. (Or my employer)

If it's gone up or down.

How much it will be worth when im 55

That's one of the reasons I want to leave now. There is 0 transparency

Don't talk to a highstreet bank about investing, they rarely do anything suitable for a novice investor.
Learn about investing, once you understand how it works you will find you can easily transfer a Cash ISA to a Stocks & Shares ISA if that is what you want to do, or to start a Stocks & Shares ISA.
Spend 6 months to a year really learning about it... lots of podcasts and videos online from UK based financial planners, start with:
Meaningful Money, Money to the Masses, In her financial shoes, Maven Money.

This podcast/video series may be appropriate for you.

New Accumulators, Episode 1 This new season is designed to help those who are getting started building wealth for the first time.
All episodes in this series.

If you are new to podcasts do not panic, the links go to a website which will play in your browser. If you know how podcasts work, you can download the audio to your phone and play it whilst at the gym, doing housework, out walking the dog etc.
Even Mumsnet has a podcast, though not about money.

When i asked about high interest monthly sharing accounts they said there arent any.
I'm not sure what you mean by "high interest monthly sharing account".
I guess the bank didn't either.

Rule of thumb is half your age at the age you start saving, so 37 you want to save 18.5% of your salary

Fund size is too small for SIPP fees

I’m adventurous & lifestyled but probably a good conversation for a pensions consultant

Have you seen the reviews on that company! Although mine is also also not growing, you’re not in a bad position though at your age with mortgage soon to be paid off.

SIPP fees have come down a lot over recent years. One has been launched this month at 0.15% annual account fee, capped at £375 (so once at £250k the account fee is capped). Draw-down fees would be something to look at... those vary between providers but you don't really know what they will be by the time you enter draw-down.

Missanony, I like your rule of thumb. It's a good starting point. Wish I could put half my age into investments... getting there slowly, about 3% more to find.

Sadly at 37, and with starting so late, there is no way you (and therefor your employer) can get away with making the minimum contribution.

What is the highest percentage your employer will go to? You need to ideally pay that. (I.e. if your employer pays in 10% if you pay in 10% or more, that’s where you need to be.)

All the things you want to look into are probably worth exploring, but the main message is really simple: you are no way near paying in enough.

the main message is really simple: you are no way near paying in enough.

Totally agree and it applies to many of us I suspect, including myself.

You're in a good position with mortgage almost paid off and savings (I assume you are debt free) to start putting loads more cash into your pension. You've got 25-30 years so should be able to build up a good pot. All the links shared are brilliant and also pensions advisory service will give you an idea of what to pay in.

Thanks everyone for the tips, and thanks again @nannynick

( i meant high interest savings account where you put in £xx each month but can't withdraw etc)

I could definitely free up 18% of my wages for investments
..
Just need to know where to start, so will look at the links /podcasts on the thread

Thanks again

Also an IFA said to set up a SIPP and move money from the WPP into that. And basically stop paying in my isa and put the £500 per month in to the sipp

You need an actively managed one. Mine went up 10% in a year although just crashed back with Coronavirus scare. It will come back though as seen it with other investments.