Saving for retirements at 28 - Advice

My company matches up to just 4% which gives me a total of 8% towoards my pension, but I have increased this to a total of 14% (half my age as a percentage rule). Is this the best option or should I be investing this in the likes of S+P 500 Global?

It will depend on what investment strategy the pension provider has as well as charges on the scheme.
My employer pays 8% I pay 8%. Changing from the preset strategies over last 5 years has allowed good growth compared to colleagues who have not selected anything other than the standard allocation.
Additionally are you a 20% or 40% taxpayer as this can make a difference.

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Maybe I should give my pension company a call and change things up, I am a 20% taxpayer.

I would only pay in your pension scheme up to the maximum amount that your employer matches.

The rest is best invested in another investment scheme with lower fees. Something like Nutmeg or Wealthsimple for example. The reason: normal pension providers usually charge an arm and a leg in fees. They sell ease of use and hope that people just invest with them because it’s so “easy”. You will loose a lot of future return. Skim through the book “Money” from Tony Robbins. He explains really well why even small differences in fees can make a big difference in the long run. Here is a quick video:

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There isn’t really any rule as to how much and when. Obviously if your employer matches your payments to a certain point then you should absolutely do this, ESPECIALLY early on in life. Getting your pension savings started 10 years earlier can mean you (assuming a steady rate of growth) will have far more by the time you retire thanks to compound interest. (I did some rough excel sheet illustrations with one of my colleagues who was 25 vs my 38 assuming paying into the same and retiring at the same and his end of year was over 3 times mine!

Just remember though pension money is locked in there until you retire, so if you wanted to put that money to use in the real world, property, investments, and so on its gone. So weigh up your future goal, use that match to its full.

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