Congrats on the news about a new little one coming! The pension advice is so good. I don't have kids yet, but have considered if i would set up a pension for my kids when they're born, they can't access it for ages (downside as they may need cash for houses, cars etc), but an extra 20 years of compounding is massive. I think the extra i would add to you list is work hard at your job, salary progression compound massively over a career. An extra £1000 per year might not sound like much, but if you bank that for the rest of your career, that £1k could be worth £40k over the course of your life (+ extra if you invest the difference!)
Thanks! I’ve set up pension and Isa for my kids. although limits you can put in are far lower. For instance with pension it’s at £3600, but the compounding effects are just crazy. If I put in £2880 a year with tax relief boosting it to £3600 and stop when they’re 18, so I’ve put in about £60k and then stop. Even if they add nothing till they’re 57, they’d have a pension pot of about £2m. Basically guarantees they’re going to have an ok chance to retire well no matter what. Whereas ISA it’s over to them to withdraw if they wanted when 18. Agreed on your point on working hard, boosting salary
Congrats on the news about a new little one coming!
The pension advice is so good. I don't have kids yet, but have considered if i would set up a pension for my kids when they're born, they can't access it for ages (downside as they may need cash for houses, cars etc), but an extra 20 years of compounding is massive.
I think the extra i would add to you list is work hard at your job, salary progression compound massively over a career. An extra £1000 per year might not sound like much, but if you bank that for the rest of your career, that £1k could be worth £40k over the course of your life (+ extra if you invest the difference!)
Thanks!
I’ve set up pension and Isa for my kids. although limits you can put in are far lower. For instance with pension it’s at £3600, but the compounding effects are just crazy. If I put in £2880 a year with tax relief boosting it to £3600 and stop when they’re 18, so I’ve put in about £60k and then stop. Even if they add nothing till they’re 57, they’d have a pension pot of about £2m. Basically guarantees they’re going to have an ok chance to retire well no matter what. Whereas ISA it’s over to them to withdraw if they wanted when 18.
Agreed on your point on working hard, boosting salary