Like many of us, the answer is probably no. But starting to save doesn’t necessarily have to cut into your life and stop you doing things. It should form part of your life, and give you the chance to do those things you always wanted to. Perfect holidays, an active social life; maybe even the chance to own your own home.
Ok, so we’ve got a couple of questions? What do you know about self invested personal pensions (SIPPs), do you know anything about the potential SIPP pension investments? Have you ever had a conversation with anyone about an ISA? If the answer to these questions is no, then it’s about time you got your financial position in shape. No more burying your head in the sand. Here are our tips for gaining a bit of financial control back into your life.
Your immediate future
The other week was the turn of the new financial year. It’s not quite New Year’s Eve, but it’s pretty important when it comes to saving. It’s basically the time of year when you get a new ISA allowance. If you’re asking what an ISA is and what an ISA allowance is; we’ll give you a quick run-through. An ISA is an individual savings account, originally set up by the Government to encourage people to save. The main encouragement is through tax incentives.
Let’s start with the most simple product; a cash ISA. This lets you save, without paying any tax on the interest you earn. With any other type of savings account, you lose 20% of the interest through tax. You don’t with an ISA. But how much can you save? This is where we come to the ISA allowance. Unfortunately, the tax free saving is capped. For the current tax year (we told you it was important), you can save a total of £5,760 in a cash ISA – tax free. So, if you have some money set aside, it’s time to control it and put it in the best place possible. There is also another form of ISA available – a stocks and shares ISA – but that’s a conversation for another day.
Have you got a pension at work? You might have since the introduction of the new auto-enrolment scheme last year. But for some this hasn’t come in yet. Either way, it’s important that you put some plans in place for your long-term future with a pension. This is where SIPPs come in.
A SIPP is basically a do-it yourself pension scheme. Rather than having someone make the investment decisions on your behalf, you make all the calls as to how your money is invested. It may sound daunting, but with a little help and advice (as well as many low cost providers on the market), it could potentially be the ideal way for you to boost your pension pot in years to come. Remember, it’s all about taking control.
What are you doing for you future?