Is it worth starting a pension at 45??

Cautious_Investor_3

Hi

I've read all the other posts so here's my 10 cents worth:

1. It is not too late to make provision for retirement and this is the argument, the argument is not about whether you should start a pension but whether you should make independent provision for your retirement (a pension is only one way to do this)

2. Your starting point should be to look at what income you want in retirement and from what age. Think about what retirement looks like for you, will your mortgage be repaid, will children be a financial burden etc, do you want large holidays etc year etc. Also, think about when you want to retire, and when you think it will be realistic

3. Then look at the provision you already have in place. You and your wife should get state pension projections using a BR19 form or the online calculation system. Also, get projections for your wife's pension and your small pension with Corus. Add these together and you will see what progress you have made towards your retirement goals

4. Let's assume you now have a shortfall, you can now start to work out (a.) how much you need to save each month to meet your goal and (b.) which vehicle you use e.g. pension / ISA etc

5. If you can afford to fund now (to whatever type of vehicle) to the level you need then go for it, if you can't then work out a plan to build up to the right level of funding

6. Spend some time looking at the various pros and cons of the pension and ISA route and make your decision when you are in posession of the full facts. Pensions give you tax relief but there are drawbacks, ISAs offer nmo tax relief but the income from them is tax free.

You could do all this yourself or you could speak to a well chosen IFA, either way if you follow the route above you will approach the problem in a more scientific way.

I really hope this helps.

The Cautious Investor

zarazara

I'd put it in an ISA

Cautious_Investor_3

zarazara wrote: »

I'd put it in an ISA

Any particular reason why?