Hi,
I'm a young chap and I've been contributing to defined contribution pension scheme since 2008. I started by going all in to 100% equity fund and maxed out by AVCs because of higher tax relief etc.
Since 2008, we now have a child whom my wife cares for full time so we're down to single income. I adjusted my AVCs to 6% of the my salary in an attempt to free up some disposable income.
My employer contributes 5% for 2% on my side. All fine you say
Given the news that the 41% relief is going to be scrapped, I'm trying to evaluate whether AVCs are worth it at all given that maybe it would be more prudent to use this money to cover rainy days/interest rate hikes where life bite with you unseen expenses given that the budget is tight just to live with some level of comfort each month.
I did invest in a rental property in 2003 which, to my mind, would hopefully be a pension of sorts IF I manage to keep up with it for the next 15 years.
If you were in my shoes, would you ditch the AVCs and start building the dam? I'm considering withdrawing from the pension entirely and focus solely on keeping our home and rental afloat but I took the pension out in April 2008 so I dont know if too much time has elapsed.
Can an experienced soul give a young fella some guidance in these dark times?
I'm a young chap and I've been contributing to defined contribution pension scheme since 2008. I started by going all in to 100% equity fund and maxed out by AVCs because of higher tax relief etc.
Since 2008, we now have a child whom my wife cares for full time so we're down to single income. I adjusted my AVCs to 6% of the my salary in an attempt to free up some disposable income.
My employer contributes 5% for 2% on my side. All fine you say
Given the news that the 41% relief is going to be scrapped, I'm trying to evaluate whether AVCs are worth it at all given that maybe it would be more prudent to use this money to cover rainy days/interest rate hikes where life bite with you unseen expenses given that the budget is tight just to live with some level of comfort each month.
I did invest in a rental property in 2003 which, to my mind, would hopefully be a pension of sorts IF I manage to keep up with it for the next 15 years.
If you were in my shoes, would you ditch the AVCs and start building the dam? I'm considering withdrawing from the pension entirely and focus solely on keeping our home and rental afloat but I took the pension out in April 2008 so I dont know if too much time has elapsed.
Can an experienced soul give a young fella some guidance in these dark times?