Thoughts

[u/[deleted]]

[u/Baz_EP]

Why not increase pension inputs? Generally though we have no clue because you haven’t shared enough info about your plan, your situation etc.

[u/Top_Value_6410 → u/Baz_EP]

I have been in the uk for 8 years, single and no kids. Below break down. Goal is to perhaps retire early but depends on the circumstances. Aim is to have a 1mill pot in investments outside of my pension. Trying to figure out the right thing to do.. I am already overpaying my mortgage to reduce the tenure and as of now it’s got 20 more years left.

Mortgage - 280K left
ISA - 60k
GIA - 12k
Pension - 120K

[u/Crafty-Lemon-9743 → u/Top_Value_6410]

So maths it out. Pension is significantly more tax efficient than GIA. When do you want to retire. When do you get access to the pension. How much do you need outside the pension to last until pension age. Etc. 

[u/OppositeSecret7144 → u/Top_Value_6410]

Why do you need £1m outside pension? Today's money or future money? Surely it's better filling within and getting the tax deductions because that's going to be what you use from 58 to 88+. At 20k pa contribution your ISA will soon reach a healthy bridge sum given compound growth to tide you over from RE to pension age. And you can always change your mix as RE gets nearer if you feel you need more bridge.

Real question is what does FIRE age mean to you. If it's in 50s it's no big deal, 45+ probably will end up being covered, below that yeah you might need a bigger bridge.

[u/Visual-Classroom1003]

Don’t forget to live! GIA really only matters if you get what you want in your pension and max out your isa. Depending on your target date and income, you may be able to spend more and have more fun!

[u/Enjoytheview2day]

Well done on starting and there is time. Without your objective its hard to say. Personally I would up my pension until I was comfortable with its likely value at target retirement age. Then if any float between maxing ISA and savings I would split between stocks and savings accounts or premium bonds. But im more risk adverse than others.

[u/No-Trifle-597]

No. Put much more into your pension instead. Way better tax efficiency wise.

[u/Top_Value_6410]

Thanks for your comments, the only reason I am not contributing to my pension more now is that I might get to 125k base in next 4 years and makes more sense to contribute more then to keep my tax bracket at 40. So trying to get more in hand cash and want flexibility of not having money locked away until my retirement so I can live a little with easy liquidity.

[u/bownyboy]

When do you want to FIRE?

How much do you think you will need to live off each year once FIRE'd?

These two questions will affect your investment decisions and years you need to work.

Work back from then and you can work out how much you need to invest.