Advice for private retirement plans

Ethermumska · 2024-10-13T10:11:03+00:00

Im looking for advice on private pension/ retirement plans, there is so much choice out there. Wondering if anyone has had any good experiences with a particular provider? Im in my thirties and work very few hours atm so Im trying to start working on my retirement....

Fleasies · 13/10/2024 11:27

I’ve recently joined the Meaningful Money Community Facebook group after a recommendation on Mumsnet. I’ve found it is a really useful source of information - the same information and recommendations about how to manage things yourself are made by multiple people including the admins and there are many free videos to give you more of a feel for the basics.

Original poster

Ethermumska · 13/10/2024 11:28

Thank you for you advice, unfortunately I do not have a facebook profile.

OP posts:

Fleasies · 13/10/2024 13:38

It might be worth considering setting one up? However the man who created it has a number of short videos on YouTube which will give a basic understanding. The benefit of the group is people asking questions you haven’t thought of, and a wide range of experiences. There are obviously different levels of knowledge and risk appetite in the people who respond so it isn’t to be taken as gospel advice but use the information sources they recommend to find out more.

Even if you decide that you want a financial advisor, you would be better informed to understand what they are offering and whether it is right for you.

Good luck!

https://www.youtube.com/channel/UC39PLqUmy-AKK5HGYYfwFYw

Original poster

Ethermumska · 13/10/2024 14:06

Fleasies · 13/10/2024 13:38

It might be worth considering setting one up? However the man who created it has a number of short videos on YouTube which will give a basic understanding. The benefit of the group is people asking questions you haven’t thought of, and a wide range of experiences. There are obviously different levels of knowledge and risk appetite in the people who respond so it isn’t to be taken as gospel advice but use the information sources they recommend to find out more.

Even if you decide that you want a financial advisor, you would be better informed to understand what they are offering and whether it is right for you.

Good luck!

https://www.youtube.com/channel/UC39PLqUmy-AKK5HGYYfwFYw

Makes sense, thank you for the link!

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BG2015 · 13/10/2024 14:24

Not necessarily pension advice but have a look at Rebel Finance school. They're a U.K. couple who give advice on managing your money. They have a YouTube channel and have a 10 week course you can follow (completely free) which gives great financial advice.

Mum2Fergus · 13/10/2024 21:06

Recommend Rebel Finance School and Pete Matthews/Meaningful Money too...both on YouTube.

nannynick · 13/10/2024 21:17

Meaningful Money has YouTube and Podcast. Plus there is a book - The Meaningful Money Handbook, which the last 1/3rd of it is about investments using ISA and Pension wrappers. Another book is due out late 2025 about retirement planning.
https://meaningfulmoney.tv

What sort of information are you after?

In your thirties, not working many hours, what are you able to do towards retirement? If you have an employer, then join the workplace pension scheme. If you don't earn £10k+ to be auto-enrolled in the workplace scheme, ask to Opt-in. If you earn under £6396 they may refuse, due to not having any "qualifying earnings".
If you are self employed, you can use a Self Invested Personal Pension. Some providers start from as low as £25 per month, whilst others may want £100 per month. Have a look at: Dodl, Hargreaves Lansdown, Vanguard Investor.

Aged under 40, low earnings, consider using a Stocks & Shares Lifetime ISA. You can put up to £4000 in per tax year until age 50, it gets 25% bonus added when you pay money in, and is tax free on withdrawal from age 60.

For money that you want accessible before age 60, a Stocks & Shares ISA is useful.

Try to keep things as simple and as low cost as possible.

Original poster

Ethermumska · 14/10/2024 09:03

nannynick · 13/10/2024 21:17

Meaningful Money has YouTube and Podcast. Plus there is a book - The Meaningful Money Handbook, which the last 1/3rd of it is about investments using ISA and Pension wrappers. Another book is due out late 2025 about retirement planning.
https://meaningfulmoney.tv

What sort of information are you after?

In your thirties, not working many hours, what are you able to do towards retirement? If you have an employer, then join the workplace pension scheme. If you don't earn £10k+ to be auto-enrolled in the workplace scheme, ask to Opt-in. If you earn under £6396 they may refuse, due to not having any "qualifying earnings".
If you are self employed, you can use a Self Invested Personal Pension. Some providers start from as low as £25 per month, whilst others may want £100 per month. Have a look at: Dodl, Hargreaves Lansdown, Vanguard Investor.

Aged under 40, low earnings, consider using a Stocks & Shares Lifetime ISA. You can put up to £4000 in per tax year until age 50, it gets 25% bonus added when you pay money in, and is tax free on withdrawal from age 60.

For money that you want accessible before age 60, a Stocks & Shares ISA is useful.

Try to keep things as simple and as low cost as possible.

Thank you so much, that was exactly the information I was looking for.
Do you think relying on inheriting a spouse's pension is a safe option?

OP posts:

nannynick · 14/10/2024 09:29

Inheritance is not guaranteed. A spouse dies before you do, can mean you get their pension but it depends on the type of pension and death benefit.
You may get divorced before then, so you may not then get their pension - on divorce there is typically a pension sharing agreement.

When you are married you have household income, household expenses, shared bank account. Pension and ISA are individual but you can pay into each others (limits apply).

For tax efficiency in retirement you want to avoid one person having all the retirement savings. Try to have it split between you. It won't be an even split. At retirement you want options, not all money being in one place. However you also need to consider tax efficiency whilst accumulating wealth, so a higher rate tax payer will likely put more to pension than to ISA. A stay at home parent is likely to not have much going into their pension, but they can have some go in.

Original poster

Ethermumska · 14/10/2024 11:47

nannynick · 14/10/2024 09:29

Inheritance is not guaranteed. A spouse dies before you do, can mean you get their pension but it depends on the type of pension and death benefit.
You may get divorced before then, so you may not then get their pension - on divorce there is typically a pension sharing agreement.

When you are married you have household income, household expenses, shared bank account. Pension and ISA are individual but you can pay into each others (limits apply).

For tax efficiency in retirement you want to avoid one person having all the retirement savings. Try to have it split between you. It won't be an even split. At retirement you want options, not all money being in one place. However you also need to consider tax efficiency whilst accumulating wealth, so a higher rate tax payer will likely put more to pension than to ISA. A stay at home parent is likely to not have much going into their pension, but they can have some go in.

Your advice goes beyond what I thought I was looking into and it has opened up a lot of avenues to explore now. Thank you so much for that!

OP posts: