Start a pension fund at 25 before moving to Vietnam?

belafron

Hi all,

I am just coming to the end of my PhD and have just accepted a 13 month post as a Lecturer at a university in Vietnam. I am currently 25 and don't have any pensions set up, but I do have savings in a Cash ISA and direct access savings accounts. The university I will be moving to does not have any options for pension provisions but I will be earning enough that I could continue to save/contribute to a pension or savings at approximately £1000 p/m

My question is: Is it worth me starting a personal stakeholder pension/SIPP before I leave the UK in order to start a pension fund earlier in my life, or should I just start regular savings in Vietnam (6/7% interest rates) as I would not benefit from the UK tax-relief provided by pension contributions (because I would not have any UK taxable income)?

At the moment I am only planning on being away for the UK for a year or so but this could stretch for longer and I don't want to overly delay starting a pension fund.

Any suggestions would be greatly appreciated.

ViolaLass

I wouldn't see any point in putting the money in a pension wrapper for now if you're not going to get the full tax benefit. That doesn't mean you shouldn't save the money though - you could always start a S&S ISA with a view to moving the money into a pension one day.

princeofpounds

Yes, no point in pensions if you don't get the tax relief and your ISA limit is un-used.

The interest rate in Vietnam might be 6-7% but the Vietnamese Dong has depreciated (vs the dollar at least) by almost 6% annually over the last 5 years. Make sure you compare apples with apples.

belafron

Thanks guys, I think it's probably worth putting the money that I would otherwise put in a pension into a stocks and shares ISA seeing as I haven't started that at all and it would be a comparable long term investment.

CLAPTON

if you are starting your first job, I would say that simply saving in a saving a/c is the best option so you have access to ready cash when you return home for (say) mortgage deposit , car etc

mania112

Have a good time in Vietnam, seems like that could be a lot of fun