What percentage of your disposable income do you invest?

[Ratherly]

How much do you put away for long term investment/savings as opposed to save for things like holidays, Christmas etc. and presuming you have an emergency fund of some sort.

I appreciate that we are in a fortunate position to even consider savings.

However, we are a bit spendy on non essentials and I wonder what would be a good balance.

We pay extra in our DC pensions, and both have an element of DB pension from previous jobs. (But probably could do with putting in more!)

We put 17% of total income into overpaying mortgage, pensions, children’s ISA and pensions. Around 50% of our disposable income. I do prioritise saving/investing over spending so I make sure these come out at the start of the pay month and then we live off whatever’s left. If we need more disposable income that month I just use what’s in the savings account. It usually works out doing it this way

Does it really help you to know? Surely there are so many variables that other people’s decisions aren’t relevant to you?

I invest via pension contributions, because I pay 40% tax and I’m in my early 50s. So that’s a no brainer - the tax relief boost is great and I’m old enough to not worry I’m locking away money for decades. 20 or 30 year old me wouldn’t have put as much in pension, 40 year old me would have agonised over, 50 year old me has no doubts at all. I don’t think knowing my % of absolute saving would help you at all.

I would look at your income and your needs and wants now and in the future.

1. Start saving enough to meet your future NEEDS.

1. Work out what you would like to spend now for your WANTS. It’s OK to have frivolous spending, but be mindful. £5K on a fabulous holiday? Do it. £1K extra on food because you don’t shop and around and meal plan? For me that’s a waste.

1. Work out your future “wants” budget and add that to number 1. I personally put my current frivolous spending as a higher priority than future, because who knows what will happen, and despite being a saver, I do also like to enjoy the now!

1. Anything left? Add it to your savings. Don’t spend it for the sake of it.

It’s far more important to work out your goals than know what other people save!

6% of gross salary goes into pension via salary sacrifice.

50% of net goes towards my half of mortgage/bills/groceries.

Of my disposable, 8% goes straight into a S&S ISA.

32% goes into a longer term savings account as a safety blanket - if I don’t need it by the end of the 12 months I’ll tip it into the ISA.

Everyone's income & circumstances are different

I have more than one income stream

I could afford to put one of the incomes into the employer pension, but this leaves all that money tied up. Instead, I have increased the amount that I pay into the pension.

I have some other savings too

However, there needs to be a balance

There is NO point working to just save, save, save

So I do spend on holidays, hobbies, days out etc

Of our discretionary income, it is split to 50% s&s Isa, 40% premium bonds for annual costs such as uniform, birthdays, Christmas, holidays and 10% fun money which is unaccounted for.

The figures are £250, £200 and £50 respectively.

Cocomarine- don't disagree with anything you've said!

It's such an undiscussed topic, and thank you everyone for posting, I am just curious as to what people who are in a position to, do.

We're overpaying the mortgage but that's to try and get it paid off before I'm 60. Currently our investments other than extra pension/mortgage run to 2.5% of disposable income...

Adding it up there and it's roughly 25% of our joint take-home pay on savings and company shares. This doesn't include pension contributions though, they're deducted at source so I don't even think about them. We should save a lot more as our outgoings are low in comparison to our wages but we love our nights out and holidays too much.

I save about 60% of my income, DH 40%. We spend the balance of my income on travel, the balance of DH on living.

I should add we are a high income household though, but you can see the range or ‘normal’

I save 90% of my income and about 30% of DH’s. We are currently saving hard for retirement, which isnt far off.

None as I can't afford it

We are mid 30s. Invest 60% of total monthly household income- mixture of pensions, S&S ISAs, crypto.

It’s totally irrelevant for anyone else though as depends on essential outgoings and what the investments are for. Eg our S&S ISAs will form a huge % of our pension but I like to keep those monies wrapped up in a ISA rather than in an official pension as the rules around pensions can change anytime. Although we keep SIPPs and workplace pensions for the tax benefits

A lot of what I do is driven by tax.

I always pension any income over £50k because the child benefit charge results in a ridculously high marginal rate.

I then do £4k into LISA because a 25% bonus with no tax on the way out is a great deal.

Then I like to reduce my income tax to nil by investing in SEIS so maybe £12k in that.

In total that's around £26k out of £60k gross. Quite a lot. It's a priority and if I spend more, I'm happy to borrow to keep up the investing.

I prioritise investing long term and invest 40% gross. Workplace pensions and SIPPS for tax benefits. Rest in ISAs. I’m not very spendy on “stuff” but do have children and travel overseas to see family regularly.

I pay £20k p.a. into a stocks & shares Isa
And
£1500 a month into a Vanguard pension

We are approaching retirement and all our spare cash in earlier years went towards paying down our mortgage early.

I wish I had worked on the mortgage, pension and ISAs together but psychologically it felt good to pay down the mortgage.

Investing> overpaying mortgage. Mortgage interest rates are so low that % returns on your investments will be far higher and you’ll be far better off. Don’t pay off a mortgage early in this day and age.
There’s a reason Einstein said that Compound interest is the eighth wonder of the world.

I invest 50% of my disposable income, with a view to retiring early. I also pay extra into my DB pension each month, but that comes out before I’m paid.

600-800 a month

I don't save for Christmas or holidays . Just pay as and when and reduce savings for a month to cover

( also saving about 2k via work pension so reduces take home )

I'm part of the meaningful money / monevator community !

So as a percent .... of take home at £600 is 21% / 800 would be 28%

I hugely reduce my salary though - by 30% + into my pension