starting a pension - advice please

clare_bear_2

I'm almost 30 and don't have a pension yet and thought it was about time I started one but don't really know where to start, a company pension is not an option.

I do have some savings (stocks and shares ISA, mini cash ISA, regular savings account) that will probably be a deposit for a house if I ever feel the need to stop renting. I have been reluctant to put my money into a pension in the past because of all the bad press etc but I don't want to be on the poverty line when I'm 65 and as I don't own any property it seems highly unlikely that I will be able to release the equity from that.

Realistically I can afford £200 a month but I'm worried that it is not enough as my boyfriend who is 24 was told he needs to be saving £500 a month - he went to see a pensions advisor at his bank.

I will probably go down the stakeholder route and buy it online through cavendish or TQ.

Any thoughts or advice???

thanks

Clare

al_yrpal

If I was a 30 year old basic rate tax payer again, I would invest in equities/bonds/property though funds or investment trusts in ISA's with taxed income.

I might even try a HYP (High Yield Portfolio) of shares - http://boards.fool.co.uk/Messages.asp?bid=51166 in a SIPP (self invested pension plan). A HYP is largely an invest and forget steady profitable long term investment, which grows faster because its free of most charges and not tied to the rottern government gilt restriction like most commercial pension plans. I would contract in and get the goverment guaranteed inflation proof SP2 (or whatever the new thing will be) plus that basic state pension. (altogether worth up to £10,000 or more at todays rates)

I certainly wouldn't put my money in a commercial pension. At retirement I would have a large pot of money that was mine, and be free to spend it as I liked, I'd also be a canny person able to continue to invest profitably into my dotage. The only danger with this plan is that along the way I'd be tempted to blow the lot. But if you are thinking the way you are now, thats unlikely.