Pension or Debt

lazy&indebt

I think a few of you know my situation but just to recap....I owe roughly £14k, all interest free at the moment so I opened up an ISA to make the most of tax free interest to pay off my debts.

I am eligible to join my company pension scheme in which I can deposit a minimum of about £40 (before tax) into. Would you join the pension scheme now or wait until debts are clear? I am 22, will be 24 by the time I am debt free.

Warriorsith

I'd join the Pension Scheme as you need to think of the future esp when it's your retirement involved, it's never to early to start one of those and hopefully you'll be able to retire at a reasonable age too and not 68 when the government wants you to (which their considering imposing on us all).

Floss

Join the scheme - the sooner you join the quicker your fund will grow, and as a no-pension-fund person, you don't want to get to 42 and be told you have to chuck 25-35% of your take home pay into a fund to be able to retire on enough to survive, never mind to live & enjoy retirement!

And anyone who gets divorced after 2001 is now entitled to a share of their ex's pension pot, but not many people are taking up this chance. Don't lose it, especially if like me you brought up children or worked part-time (and were ineligible to join a pension). I missed out by 5 months and have the sum of £573.42 a year to retire on to date!

Emmzi

Pension, you get tax breaks on it.

jesster_2

I had a similar dilemma. Do I pay £70 a month into the company pension or clear my debts quicker. I chose to join the pension, particularly because it's a good final salary scheme and there were rumours about it closing to new joiners. It turns out I was right to join: it is now closing and I'm glad I'm in, even if it did put me a few months back in terms of debt free date.

lazy&indebt

Cheers everyone! Off to fill in the forms...