How to save for retirement?

[Lucan]

Resurrecting this to agree with those about stocks and shares ISAs. I think many people only associate ISAs with the cash ISAs and its pitiful growth, not realising there are 5 more different types out there. The average stocks and shares ISA grew over 15% last year and not subject to capital gains tax. I had a look at the retirement ISA, however the 25% extra the government contributes to what you put in sounds good at first but is probably not worth it unless planning on retiring in the next 10 years.

 

For the state pension you can easily check online if it is worth backpaying any years in which you did not contribute to NI (esp. relevant for self-employed, those spent time abroad and us youngsters who need 35 years of contribution). The cost of £600/700 to backpay a year is a good investment for an additional £250 every year to your pension income.