# 42 with no pension but have 30k savings...



## kittyjo (29 Sep 2012)

I like to manage my money but get so confused with pensions that I didn't start one. I've just joined a company part-time (3 days) and I'm now on their Friends First pension scheme but I'm wondering should I try and do something with my savings to increase the amount I'll have at pension age? Any advice would be well appreciated...but keep it simple...I haven't a logic head


----------



## Palerider (9 Oct 2012)

If you plan to stay with the company you now work for fora  number of years 3+ and they also make contributions then you get the benefit of their contributions added to whatever you are paying yourself, somebody else can outline the tax advantages, I'm rusty on those right now.
Anytime you can get somebody else in this case an employer to make contributions towards your future you should grab it but don't over fund your pension, this is after all for retirement and hopefully you are years off that right now..


----------



## gearoid (9 Oct 2012)

*Pension*

Hi Kittyjo,
You aren't giving enough information for people to judge.
You may have 30k savings, but do you own your own home or have significant equity in a house i.e. a large part of your mortgage paid off? 

You have obviously lost out on significant tax allowances, which is unfortunate.

If you own your home then that would make a significant difference. If you are renting and don't own a home, then you have to factor in the cost of renting when you are at retirement age.

Best of luck with your savings decision.
Regards,
Gearoid


----------



## gbh2930 (10 Oct 2012)

There are other things you need to have in place before Pension
Start with a basic emergency fund of maybe 1000 put away in a savings account
Then focus on clearing all debts apart from House
Then focus on building emergency fund to stage where you have 3-6 months living expenses in the savings account

Do you have those things in place first?
www.daveramsey.com/new/baby-steps/

Pension needs to be 1 part of a larger process. I thought this book was very good, maybe start with it or in the money makeover forum. Then come back if you are at right stage for pension
www.amazon.co.uk/The-Total-Money-Ma...078X/ref=sr_1_1?ie=UTF8&qid=1349858997&sr=8-1

Do you have these things in place? We don't have enough information to judge.


----------

