30 year old with no pension help advise please

hayhay2010

Hi I am 30 years old and due to changing jobs/no financial awareness/ raising a young family. I have not been adding to a pension.
My current situation is I am working part time do not pay any tax, I am due to start a new job in a few weeks but will not be able to join a company scheme until next year (very small company).
Me and my husband do have some savings approx 3 months combined income.
Question is do I open a private pension? but as I will not save on tax or get any employer conterbrutions?
Or we do have quite a high mortgage over pay until I can join?

Any advise would be appreciated.

Thanks

mania112

Overpaying Mortgage/Delaying Pension Vs. Starting Pension Now

- Generally, this is about a 50/50 toss up - both have their own pro's and con's.

You wouldn't be making a mistake (in my opinion) by overpaying your mortgage until your new company pension is in place.

hayhay2010

Thanks I did think this would be the way to go until I can join the pension scheme, but like I said I am clueless when it comes to this.
thanks

dunstonh

The problem with overpaying the mortgage is that when you start the pension later, you are talking about a much bigger monthly contribution than in your early years. Plus, historically, investment returns exceed mortgage interest paid. So, you miss out on those early years of investing which can make you more over the long term potentially.

I wouldnt open a pension for just one year but maybe look to save money up to pay it in the employer one next year to make up for your late start.

mania112

Yeah good point, you can put 100% of your salary (up to £50k) into a pension in any year, so you can overload the first payment with money saved over the coming year.