Now a good time to invest in pension?

Growingmyown

Hi. I am 37. I paid into a final salary scheme (at a University) between the ages of 24 and 36. I also paid about 7% of my salary into an AVC. I left this job last year and it's now been a whole year since I've paid into a pension (I can't now pay into the FSS scheme or the AVC). From research on this website I would like to arrange a Stakeholder Pension with Legal and General, with the fees being paid upfront to Cavendish Direct (a broker I think).
My question - with shares at their current value, if I send off my application to Cavendish this week, is that a good thing to do? Will it mean I get more shares at a low value? I want to pay a lump sum now of £3k, and then a monthly amount.

dunstonh

From research on this website I would like to arrange a Stakeholder Pension with Legal and General, with the fees being paid upfront to Cavendish Direct (a broker I think).

I didnt know this site provided research for people to make a decision on the right contract, provider and funds... At your age, I doubt that is the cheapest option.

My question - with shares at their current value, if I send off my application to Cavendish this week, is that a good thing to do?

If you invest in the markets that are down then in the long term you would expect it to be. However, if you dont invest in the markets then you wont be affected by them in the same way. So, it depends on how you build your portfolio.

Growingmyown

I meant informal 'research' that I had done by reading through the advice on the MSE website; not research done by MSE - I know MSE is not a formal research organisaion. Sorry not to be clearer on that.

purch

with shares at their current value, if I send off my application to Cavendish this week, is that a good thing to do? Will it mean I get more shares at a low value?

You are not just restricted to putting all your Pension Investments into Equities.

If a Pension is the right product for you then it is always a good time to Invest

It is the Investment choice that is important, not the time

Baz_2

Sounds to me if your asking if the market has hit it's bottom? Impossible to answer.

If I was you I would not pay the whole 3k into it in a lump sum. Pop the £3k into savings and drip it into your pension over a number of months. That way if the markets haven't bottomed yet and they drop further you are getting a balance of units at different prices and some will still make good gains when the market rises again. Whereas if you pop the whole £3k in now it is fixed at the price on the day and you only make gains one the market has risen back to that price.

Obviously the reverse can also happen and if the markets go up straight away you will be buying them at a higher price over the months you are buying them.

So if you think the market has bottomed, pay it all in one go now. If you think it has further to go then maybe wait a bit. If your not sure then drip it in, maybe £300 per month over the next few months or so.

Just a laymans point of view for you.