Should I get a pension?

liamgallagher87

Hello,

I'm a 26 year old currently without any form of pension. I'm wondering if it's something I should start looking at now even if I can only afford to put £20 away each month?

I always led myself to believe that if I got on the property ladder early and bought more property the elder I got then I could use these as my 'retirement fund' but I'd like some more advice from those much wiser.

I currently have a property with about 30k equity and at the minute after bills etc I only have £200 spare per month.

Is a pension wise?

xylophone

Is a pension wise?

Do you want to rely only on the State Pension in old age?
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

Does your employer have a pension scheme?

dunstonh

Should I get a pension?

You are asking the wrong question. Or at least, looking at in the wrong order. Your question should be " should i plan for retirement?"

I always led myself to believe that if I got on the property ladder early and bought more property the elder I got then I could use these as my 'retirement fund' but I'd like some more advice from those much wiser.

A niche option that requires a lot of discipline and typically requires around 6-8 properties. At 26 you can only afford £20pm. So, is it realistic that you are going to become a professional landlord on a budget of £20pm?

at the minute after bills etc I only have £200 spare per month.

So, if your budget £200 or £20?

Is a pension wise?

Retirement planning is wise. Thinking you will become a property tycoon on a budget of £20 is unrealistic.

puk999

The earlier you start a pension the more time it has to grow. The effect of compounding is fantastic when given enough time. Keep an eye on the performance of the investments within the pension from time to time. Your future self will thank your current self for acting now. I'm 43 and wish my self 17 years ago (or ideally more) put more away for retirement.

bigadaj

If you don't pay higher rate tax than many would say you're better savings into isas, unless you have employer contributions when paying in up to the point your contributions are matched is rarely wrong.

Also look at increasing income, could you get a lodger for example to pay bills and mortgage and divert that money into savings, pensions and investement?

atush

Do you have any debt? Do you have an emergency savings pot? Does your employer have a pension?

You need some sort of planning for retirement, and a pension (esp an employers pension) will be part of that planning so tell us more?