Want to start a pension

threemuttleys

Hello

I am looking to start a pension this year.

I am 28, female, I do have a pension with my employers, but would like to start building a little nest egg of my own.

Problem is, I cannot afford to save a huge amount atm, (maybe £40 per month) would I be better off just putting the money into an "untouchable" account, or a proper pension fund?

Thanks

Claire

McKneff

Why not do AVCs with your company pension, seems the sensible thing to do,

atush

Ok, can you add more to your employers pension? If you need to put in 5% to get their 5% it doesn't mean you can't add more?

Second, what is your overall financial situation? Do you have any debts? Any savings? Do you own a home (or do you plan to in the coming years)?

Generally the usual advice is to pay off all debt before increasing savings once you already have a pension going. then to save 6 months spending in easy access cash for emergencies/redundancy.

Then you have short term goals (such as home deposit/starting a family). This should be in money that can be accessed before age 55 (as that is the earliest to access pension money).

If you already own a home, you can then overpay your mtg or save into equities. If you don't own a home, but want to, then you need to save into cash or equities (if you wont buy in less than 5 years). If you own your own home, and have savings then you can add more to your employers pension or start up your own.

I would wait for one of the professionals, but at only 40 per month I would say look at stakeholders.