would I be a fool to start a pension now?

diveleader

I was just about to commence payments into a pension fund.
With the market currently how it is, would I be foolish to start now?
Or, the fact that the market is depressed mean that there are relatively short term gains to be made??

can i get tax relief on the cash saved under my matress?

ozzage

I've just started one myself. It makes almost no difference unless you're paying in a large lump sum anyway.

As I've got older, I've realised that the worst time to start a pension is "later" and I should have done it much sooner.

Just do it. Forget about short-term gains though. Just think about the long term.

dunstonh

With the market currently how it is, would I be foolish to start now?

Would you rather be buying units at nearly twice the price?
What are you going to do when the next bear market comes around? (typically every 5-7 years)

You should invest in line with your risk profile. If you are not medium/high risk for investing then you wouldnt be 100% in the stockmarket. How much would depend on your risk profile.

swiss69

Pension funding in this country is an accident waiting to happen. The state pension will become payable at 68 for anyone born after 1976. Current basic state pension is around £90 per week!

Think about how much you want when you retire. As an example to get a pension of around £10000 per year that would rise each year in line with inflation at age 65 would need a pension fund of at least £250,000. Anyone saving less than 10% of annual salary is in for a poor return at retirement.

You should save as much as you can when you are younger as this has the longest time to grow. Regular reviews going forward are vital. Seek advice.

HarryD

diveleader wrote: »

I was just about to commence payments into a pension fund.
With the market currently how it is, would I be foolish to start now?
Or, the fact that the market is depressed mean that there are relatively short term gains to be made??

can i get tax relief on the cash saved under my matress?

Now is as good a time to start contributing to a pension as any. Otherwise there will always be a 'reason' not to: markets are too high, markets are in turmoil, markets might go down...

warpfactor7

Pension query.......

If I take a lump sum and close my current pension at age 65 can I then take the "tax advantage" and open another new private pension within pensionable age by placing the lump sum into the new pension. I would then ontain the tax relief from my lump sum.

During this process, I will be staying on within my current job (past 65).

Many thanks,

dunstonh

Seeing as this thread was 2008, lets hope the OP did start the pension as the years that followed saw some very good returns.

Pension query.......

If I take a lump sum and close my current pension at age 65 can I then take the "tax advantage" and open another new private pension within pensionable age by placing the lump sum into the new pension. I would then ontain the tax relief from my lump sum.

During this process, I will be staying on within my current job (past 65).

Many thanks,

Its usually a good idea to start your own thread rather than hijack someone elses. Otherwise you get multiple conversations going on in one thread. However, as this thread is over 2 years old, I cant see the OP minding in this case. Although your subject has no relation to this thread topic.

You can do what you wish providing you do not fall foul of recycling rules. There may not be any real advantage to what you are doing as you may get tax relief on one hand but get reduced death benefits and lower income rates on the other. It will require a calculation to see what is best for you and making sure you do it in the right way.