Pension for 26 year old, to pay or not to pay?

atush

My point was, how is an expensive trip and no future income for the next year or so actually paid for?

It would have meant saving quite a sum which the OP said was impossible to do while working

I was just saying I wasn't sure how they managed that, if they were spending 100% of what they were bringing home.

becky4131

I have worked solidly for the last 14 months in two jobs and saved any spare cash, not had any social life and cut out everything except things i actually need. I don't have a huge amount of money saved but just enough to go where i want and then i will be working whilst away (luckily i am trained in something that is in demand in a lot of countries).

I didn't come on here to be told i should have thought about starting a pension earlier etc. Do you have any idea how hard it is for a single 26 year old to even get on the property market, put myself through university and live independantly with no financial support at all?

I realise that in future i may not be able to afford to buy property again and that is a risk i am taking to actually get some of my life back and do something i have always wanted to do whilst young. Its all good and well saving whether it for house or pension etc but life is for living and i don't want to regret not doing things because im more worried about my retirement fund!

Wilkins

I think you should opt out and use the extra cash as you see fit. It sounds like you know what you are doing (to some extent) and your time abroad might open new possibilities for you.

You recognise that should start a pension when you get back. Sure, you might have lost some money, but the early contributions are usually quite small and, while it is true that they have the biggest compounding effect, the gains made by the larger contributions you make a bit later on will mitigate this.

bigadaj

becky4131 wrote: »

I have worked solidly for the last 14 months in two jobs and saved any spare cash, not had any social life and cut out everything except things i actually need. I don't have a huge amount of money saved but just enough to go where i want and then i will be working whilst away (luckily i am trained in something that is in demand in a lot of countries).

I didn't come on here to be told i should have thought about starting a pension earlier etc. Do you have any idea how hard it is for a single 26 year old to even get on the property market, put myself through university and live independantly with no financial support at all?

I realise that in future i may not be able to afford to buy property again and that is a risk i am taking to actually get some of my life back and do something i have always wanted to do whilst young. Its all good and well saving whether it for house or pension etc but life is for living and i don't want to regret not doing things because im more worried about my retirement fund!

The problem with forums is that they frequently take limited information and then extrapolate it, sometimes correctly and sometimes not. You seem to know what you want and have the discipline to achieve the targets you set so good luck, as you say life is for living particularly when you're young, I certainly don't regret the career breaks I took for travelling though in some ways this was easier fifteen or twenty years ago.

atush

becky4131 wrote: »

I have worked solidly for the last 14 months in two jobs and saved any spare cash, not had any social life and cut out everything except things i actually need. I don't have a huge amount of money saved but just enough to go where i want and then i will be working whilst away (luckily i am trained in something that is in demand in a lot of countries).

I didn't come on here to be told i should have thought about starting a pension earlier etc. Do you have any idea how hard it is for a single 26 year old to even get on the property market, put myself through university and live independantly with no financial support at all?

I realise that in future i may not be able to afford to buy property again and that is a risk i am taking to actually get some of my life back and do something i have always wanted to do whilst young. Its all good and well saving whether it for house or pension etc but life is for living and i don't want to regret not doing things because im more worried about my retirement fund!

That is your money and your choice. But you made a choice, ie saving for your trip. Which is fine, again your money.

But you made it sound like you couldn't save a penny and were 'keeping your head just above the water' i think?

You bent the facts in your OP, and are now being called up on it, that is all. Everyone makes choices, some of us here were on low salaries, and had to make choices. Some worked those two jobs, and saved for a home and a pension instead of a gap year/2. Others saved and blew it on living. But many do what you did the last 14 months ie worked 2 jobs etc but saved for a house/pension instead.

I feel your anger at my question is unjustified, I was just trying to work out the maths which didn't add up. Now they do, as you can save and did (but said you couldn't). Just not for your long term future but your life now.

If and when you come back (who knows you could find a place you like better), you can decide if you made the right decision. Your money your choice.

mark55man

I would imagine some combination of travel and temporary work would be a very fulfilling year- the next generation along will be working until 70 so I find it understandable to have some fun and worldly experiences when young but mature enough to enjoy to the full.

equally the point about freezing in a bedsit in your 70's is a stark warning that will be the truth for many. from the above posts I would put some money aside into a Stocks and shares ISA with the intention of leaving it a long time (allowing for transfer into a pension at a later date if advantageous - at the very least to get into the habit of saving))

It seems like the scheme your employer is offering is, in your precise situation, not worth using for only a few months.