Should I put this money towards my Pension or a Home?

S.D.Blake

Please may I have your personal opinions/advice on this...

I was given a large amount of money from an inheritance and I have paid off all my debts, I'm still left with around £40,000.

Do I... put this in a pension, as I'm 31 years old and do not have one or do I put this towards a home?

I live in a 'Right to Buy' housing association property that would cost £50,000 to buy.

I am looking to start a small business and having my own property would give some relief into paying rent/mortgage, I would only need to find money to pay for council tax, energy bills and food etc. However I am 31 years old and I still do not have a pension.

Albermarle

Do I... put this in a pension, as I'm 31 years old and do not have one or do I put this towards a home?

The main benefit of putting money in a pension is the tax relief. How much you can benefit from this depends on your current income and how much tax, if any , you are actually paying . Can you inidicate this info as it could make it easier to decide what to do.

DiggerUK

A mortgage free house in retirement is a pensionable asset in itself, and doesn't cost.
House, house, house. (You can look at a mirror and say it three times, I promise it will make you smile happily)..._

Primrose

I'd be tempted to put £30k of this towards a house and if necessary get in a lodger to help fund it for a couple of years so you dont t overstretch yourself financially while trying to set up your business.
It may be difficult to fund much of a pension in the early years of your business so perhaps put the remaining £10k into a pension to at least give yourself a start. It will at least have the benefit of hopefully growing in value a little if the economy rises but don,t make make the mistake of being complacent about a pension. You need to be contributing for a long time to build up a reasonable retirement pot.

enthusiasticsaver

I would do both but it depends on how much of a mortgage you could raise if you are setting up a new business. Are you working at the moment? Can you set up the business alongside your current job? If you have been working for quite a few years and have opted out of your pension you have effectively turned down free money from your employer and HMRC.