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Confused!

Discussion in 'Retirement' started by charlolamo, Jan 21, 2018.

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  1. charlolamo

    charlolamo New commenter

    Hi everyone, I have spent the entire afternoon reading about Lifetime ISAs, AVCs and TPS options... And I think I might be even more confused now! I really don't know what is best... I am in my early 30s and I want to save extra money in order to hopefully leave work before 65. I read that some people were unhappy about the AVCs and would rather make the contributions towards their TPS... Thoughts? Also, I don't think I am adventurous enough for an SIPP.
     
  2. lindenlea

    lindenlea Star commenter

    Building up your TP is good but it's all a gamble on how long you live. If you don't think you'll live all that long use a product that you can turn into cash when you retire and possibly pass on as part of your estate when you die. If you think you'll be long lived, the pension is a great investment and you will get more out than you put in. A crystal ball would be great eh! Probably a mixture is a good idea.
     
    plot71 likes this.
  3. charlolamo

    charlolamo New commenter

    A crystal ball would be very handy indeed! Thanks :)
     
  4. PeterQuint

    PeterQuint Lead commenter

    Best bet - any extra cash you have, pay it off your mortgage.

    If you're due to retire at 67, and pay off your mortgage at 60, imagine instead if you paid the mortgage off by 55.

    That's 60 months early. Multiply your monthly mortgage payments by 60 and imagine you had that amount in savings when you're 60. Suddenly you don't have to work to 67.
     
    plot71 and eljefeb90 like this.
  5. eljefeb90

    eljefeb90 Senior commenter

    I am 59 and I am not sure whether the decisions I made 30 years ago are still applicable. Do you have a mortgage? I was a sole income earner with three kids. The day after I paid off my mortgage, I retired. Both psychologically and financially, it was a massive weight off my mind. As @PeterQuint said, pay off the mortgage as soon as you can, if you have any spare money.
     
    PeterQuint likes this.
  6. charlolamo

    charlolamo New commenter

    I don't have any children and I don't have a mortgage - I live in London and can't really afford to buy...
     
  7. Bedlam3

    Bedlam3 Lead commenter

    Charloamo, is your plan to continue renting or will you be looking to buy a home in the future? If so then I think you would be best to save towards a deposit first.
     
    charlolamo and Dorsetdreams like this.
  8. paulstjohn2014

    paulstjohn2014 Occasional commenter

    One plus of being a teacher is the decent pension scheme. At the moment you need to concentrate on saving for a house deposit. Long term, buying a house will provide greater security in retirement. You will have your teachers pension and hopefully state pension to keep you when you retire. Of course if you want to retire earlier you may need to have other savings to supplement pension or not depending on the amount you receive and the lifestyle choices you make. Don't panic too much yet!
     
  9. charlolamo

    charlolamo New commenter

    Ok, Thanks PaulStJohn2014 :)
     

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