Starting a teenager's pension

OldBeanz

Yes the bank of mum and dad.

He is planning to move out in a couple of years which will give him enough time to save on top for his deposit

atush

he should save a cash pot of 3 months spending, then save into a S&S isa perhaps.

You are his safety net, not his emergency cash pot (as he doesn't need on w/oe bills to pay and a mtg).

On top of that he needs to save first/last months rents in a moving out pot.

After that i'd increase savings in Isa or pension.

ozzage

If he is keen/willing to start investing into a pension at the age of 19 I would avoid doing ANYTHING to discourage it, even if according to some it's not the most appropriate use of his money right now.

I don't think the ISA argument makes sense. The whole point is that pension is NOT available for use in the meantime. Building up a pot dedicated to retirement should begin as soon as you start working, to reduce the size of the contributions you need to make over your entire lifetime.

jblessing

[QUOTE which will include a contribution from his employer of 3% which he will match.[/QUOTE]

Speaking as someone at the other end of the pension planning (i.e. will shortly reach 60), ALWAYS allow someone else to put money into your pension plan. If that requires you to match, so be it. Other than that, ISAs or property allow you much more flexibility in how you spend your own money.

PensionTech

which will include a contribution from his employer of 3% which he will match.

If he pays more into NEST, will his employer pay more as well? Many employers will match additional contributions paid by the employee. If so, that's free money.