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Is this a wise way to save money?

190E(Taylor’s version)

Im hoping that if I get accepted for pip my first payment can buy me the things I need to stay regulated and organises(for now) so you think a good idea afterwards to help ward off overthinking etc would be to put it aside in a savings fund so when I do go full time self employed I can have savings for pausing my self when I have bad weeks or sickness or holidays snd mabie also another fund to cover my expenses and investment?

I know my pip is likely to be lower rate daily and no mobility so it won’t be much but it beats stressing over using tok much of my income on travel strings,union fees(which helps me stay insured and get ants money owed etc) and subscriptions to services I need for inspiration and backing track oh and nkt forgetting I’ll need an accountant once a year 

all going well I hope to put 10% aside a week too but this is when I’m earning a lot more than i will be to start 

also I need to save incase my uc decreases which on medium to high musican wages I’ll likely nkt get uc at all apart from possibly rent on mid

Parents

  • Learning about how the state pension and s private pension both work and are maneged are both big topics to take onboard and apply to your personal circumstances and appropriate pension planning.

    However, it is essential life skills learning and it is difficult to plan your way ahead if you don't yet have the information about where your National Insurance and Pension(s) situation are currently and the options available to you in the future.

    Bitesize topic chunks of learning is sensible, as there is a lot to consider about effectively how you go about investing in yourself to plan ahead for your retirement needs.

    Pension need-to-knows articles:

    https://www.moneysavingexpert.com/savings/discount-pensions/

    The important discussion about how much to save towards your pension:

    https://www.moneysavingexpert.com/savings/discount-pensions/#save

    Also worth reading the section about "Get FREE impartial help and guidance". 

    7 key pension-related general life skills to share (I cannot offer financial advice but hopefully it is enough of a signpost for checking out the topics yourself in appropriate detail):

    1) putting enough each year into your state pension can serm a bit of a mystery at first - but you csn track a government forecast based upon how much money / how many National Insurance years you have paid into (contributed) your state pension to date and what options you have to further influence your state pension. 

    There are 3 essential government services of which to be aware:

    a) to use the government online personal records access and calculation tools you need to use an identity verified login account.  Some people may have previously used a"Gateway" or a "Verify" account ...but the government keeps changing the identity verification logon requirements per service you try to access - so you will need to read the account registration  / login account guidance per government website or app.

    b) how much NI you have contributed so far and how many more years of contributions you would need to achieve a full state pension:

    www.gov.uk/check-national-insurance-record

    c) your state pension forecast calculation tool (based upon what is currently known about state retirement dates).

    https://www.gov.uk/check-state-pension

    www.gov.uk/plan-for-retirement

    2) if you have taken up free pension planning advice and it were to suggest you ought to consider setting up a private pension of some type; the challenge involves doing so as early in life as possible and to contribute to as much as is affordable - as soon as possible - because these are designed to be long-term investments and you are trying to kickstart and manage something of enabling an accumulation effect.

    3) when considering a private pension scheme - they sre not at all equal when it comes to running costs, fees and charges - so it is essential to shop around and read the information about charges.

    4) Many people don't seem to know that, if you have a private pension, and you are not a tax payer in a given tax year, you can still contribute an amount of your money into your fund per year and it will be topped up (your pension provider claims tax relief on your behalf and adds it to your fund) with the tax you would have paid (see the section "If you do not pay Income Tax"):

    https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief#:~:text=Your%20pension%20provider%20can%20claim,no%20earnings%20in%20that%20year

    5) If you have worked for previous employers over the years and know from you payslip and P60 that you contributed to a pension provider - but have lost track of how to contact the pension administration team involved in managing the pension related to prior employment (and how to login to check your fund) - the Pension Tracing Service is a place to start (so you csn find out how your pension fund for that employer is performing and make decisions about management of your fund now and in the future):

    https://www.gov.uk/find-pension-contact-details

    6) When you have National Insurance / Income Tax / Pension questions - usually the safest place to start your research is on the government website:

    https://www.gov.uk/

    7) The "new State Pension" (as opposed to the "basic State Pension" or the "Additional:State Pension"):

    "You’ll be able to claim the new State Pension when you reach State Pension age if you’re:

    • a man born on or after 6 April 1951
    • a woman born on or after 6 April 1953

    If you were born before, these rules do not apply. Instead, you’ll get the basic State Pension. You may also get Additional State Pension."

    www.gov.uk/new-state-pension

    For those people within our community who would prefer an Easy Read document about the new State Pension; this is available here:

    https://www.gov.uk/government/publications/easy-read-new-state-pension

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