Mortgage or Pension / ISA

lavenderlily

Morning,

I don't have a deposit for a mortgage, nor do I have a pension. What should I make my priority, seeing as I am now 40. Live in London so buying a house seems like it will never happen, but no pensions look like they'd be worth much either in later life?

Anyone else in same the same boat? Trying to make sure I am not sleeping rough as a pensioner.

Your_Hero

Start saving money if finances allow. If not then neither of the 3 will be possible.

atush

I agree, save and save hard. Consider commuting from a greater distance if you will never be able to afford a house.

I'd split all available savings between an pension and a S&S isa (assuming you have a cash emergency pot
).

That way you are saving and invested and the S&S isa can be pensioned later if you don't buy.

lavenderlily

Thanks atush - commuting further is out as I work very odd hours.
Saving it is!!
I have no debts or credit cards.

dunstonh

don't have a deposit for a mortgage, nor do I have a pension.

So, at age 40, its pretty much a case of you being stuffed unless you come into amounts by other means or have significant excess income to make up for lost time.

You are not in a good position but you need to fund for short term need (savings account), medium term and long term. All of these things need doing and you have to decide how serious you are at doing it. Otherwise you are looking at around £155pw in retirement in todays terms.

Vortigern

lavenderlily wrote: »

I have no debts or credit cards.

Get yourself a credit card (preferably with cashback). Use it to make the same purchases you would normally make (no extra spending!) Pay it off in full each month. This will build your credit history with the credit reference agencies and may make it easier for you to get a mortgage when the time comes.

dunstonh

Vortigern wrote: »

Get yourself a credit card (preferably with cashback). Use it to make the same purchases you would normally make (no extra spending!) Pay it off in full each month. This will build your credit history with the credit reference agencies and may make it easier for you to get a mortgage when the time comes.

I get what you are saying and it can help a credit reference. However, we have very limited information here on the OP. Questions would normally be considered as to how a 40 year old has no savings, no pension, no investments, no property. Is this down to poor credit history or lack of control when it comes to money? if so, getting a credit may not be the best option as it could be to tempting to spend money he doesnt have.

jimjames

lavenderlily wrote: »

Thanks atush - commuting further is out as I work very odd hours.

Odd hours may make it easier if you drive - you then avoid rush hour.

I agree with the other posts, get saving asap so you are spending less than you earn.

Cut out non essential items and check exactly what you are spending each month. Even small items such as a £2 coffee each day add up and would make you £400 a year better off.

The Debt forum may be of use showing money saving tips but get building up your emergency fund as starters.

atush

Plus, does your employer offer a pension? If so, why haven't you joined?

Have you been throwing away free money?

alexanderalexander

lavenderlily wrote: »

...but no pensions look like they'd be worth much either in later life?

You can't make that generalisation. A "pension" is just a tax efficient wrapper for your investments, so how much your pension is worth on retirement simply depends on how well your underlying investments have done. I am sure that many stock market investments will do very well indeed over the 25-30 years until you're likely to retire.