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How much is too little to pay into a pension

frankytempleman
frankytempleman Posts: 1 Newbie
in Pensions, annuities & retirement planning
Hello.

I am deciding whether its worth starting a pension but I can only spare up to £50 a month .. is it worth putting in such a small amount?

any help would be appreciated

thanks

Comments

  • oldtractor
    oldtractor Posts: 2,262 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    I suppose it depends how old you are. Me and my DH only have the state pension but save monthly into an ISA account. If we paid into a pension we wouldnt even get back our payments per year so not worth it for us.
  • dunstonh
    dunstonh Posts: 121,690 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    is it worth putting in such a small amount?

    If you are in your low 20s then yes. its you are in your late 50s then no.

    A pension is only as good as what you pay into it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Bigsmak
    Bigsmak Posts: 188 Forumite
    Part of the Furniture Combo Breaker
    frankytempleman wrote: »
    Hello.

    I am deciding whether its worth starting a pension but I can only spare up to £50 a month .. is it worth putting in such a small amount?

    any help would be appreciated

    thanks

    How old are you

    what age do you plan to retire at

    what is your wage / are you working? does your company offer a pension scheme?

    Do you have any other provision for your retirement (ISAs, property etc)

    How much would you need a month to live on when you retire?
    I work in finance

    Anything posted on this forum is for discussion purposes only and should not be considered financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    frankytempleman wrote: »
    I am deciding whether its worth starting a pension but I can only spare up to £50 a month .. is it worth putting in such a small amount?

    Is this totally off your own bat or is your employer also contributing?

    How old are you?

    My daughter is 17 and has had a pension for years with only £20 going in. MHRC add another fiver a month, and it's amazing how it adds up.

    BTW, see the MSE main site regards getting a pension with low fees. I went with Cavendish Online, and finally chose Aviva, but there are loads of options.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    oldtractor wrote: »
    If we paid into a pension we wouldnt even get back our payments per year so not worth it for us.

    Would you care to share your calculations on this? I suspect that triviality is your friend.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Bigsmak
    Bigsmak Posts: 188 Forumite
    Part of the Furniture Combo Breaker
    oldtractor wrote: »
    I suppose it depends how old you are. Me and my DH only have the state pension but save monthly into an ISA account. If we paid into a pension we wouldnt even get back our payments per year so not worth it for us.

    I'd like to know more on this
    I work in finance

    Anything posted on this forum is for discussion purposes only and should not be considered financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation
This discussion has been closed.
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