Do I continue with Shared Ownership or put this into a pension and rent

Unicorn79

I feel I am at a cross roads.  I claim Universal Credit as am a single PT working mum, I own a share in my SO property which is worth around £80-90K, I am not able to obtain a mortgage due to my low income so I continue to rent from the HA.  I have virtually no pension.

I am planning to move soon (sell my SO share) and feel I have 2 options:

A) To move to another SO property, but a small share outright, and still pay a small amount into a pension

OR

Place my share value into a pension after sale and rent.  This means that I will have a bigger pension when I am retired later on (better than what I have now!) and I live in a property where I am not responsible if any problems happen with the home.  Also, I am free to move if I wish.

I know there is no right or wrong warm but I would really like some ideas/thoughts from others as a different perspective.

I really appreciate it!

Bookworm225

you are a single parent on benefits with no prospect of a mortgage

you have not explained why you are moving

however your question is self evident, owning property is pointless for you, whereas your pension is vital

PAY INTO PENSION 

Unicorn79

Bookworm225 said:

you are a single parent on benefits with no prospect of a mortgage

you have not explained why you are moving

however your question is self evident, owning property is pointless for you, whereas your pension is vital

PAY INTO PENSION 

Thanks!  I am moving as in a tiny village with no amenities except a primary school.  I would like to move to a town, city with amenities and things to do for secondary aged child(ren).  Also, with transfport links, support lines etc for me whilst I hit the second half of my life!

There are retirement Shared Ownership properties, which could be idea later on, which would give me reason to stay in Shared..

ripplyuk

Would you be renting from the HA or would it be private rented? 

MichelleUK

You will not be able to pay that amount into a pension, there are limits based on your earned income. Have a look at the Pensions forum here for more details.

Bookworm225

Unicorn79 said:

There are retirement Shared Ownership properties, which could be idea later on, which would give me reason to stay in Shared..

why?
will you feel a failure in life if you do not own a property?
there are people whose financial circumstances mean they should drop the aspiration to own and just accept their circumstances.

you could put the money towards learning a skill so you can get a better job?

Albermarle

MichelleUK said:

You will not be able to pay that amount into a pension, there are limits based on your earned income. Have a look at the Pensions forum here for more details.

As above the maximum you can pay into a pension each tax year and get tax relief on the contribution, is related to your annual earnings.
It is pointless adding to a pension without getting the tax relief.
However you can still save/invest money for retirement in addition to pension.
Cash savings, Stocks and shares ISA etc 

As a general rule, 
Pensions are better for building up a retirement pot due to the tax relief ( although there is a limit on this as said)
Investing via  a S&S ISA is best for money you will not need for 10 years or more ( but before you can take the pension)
Cash saving is best for money you will need in 5 years or less. 

Pensions & Investing | MoneySavingExpert
Savings | MoneySavingExpert

Myci85

If your can't get a mortgage, I'm guessing you will struggle to find a private rental that will accept you as they usually have strict income thresholds. However in many places HA rentals are very hard to get, so I wonder how long you may be waiting to be offered a suitable property. That may take the decision away from you. 

Unicorn79

ripplyuk said:

Would you be renting from the HA or would it be private rented? 

This would be renting privately.  I would not be eligible for HA due to the cash I would have after sale of SO..

Unicorn79

MichelleUK said:

You will not be able to pay that amount into a pension, there are limits based on your earned income. Have a look at the Pensions forum here for more details.

Good point, I could save a portion of it though as a decent start.

Unicorn79

Bookworm225 said:

Unicorn79 said:

There are retirement Shared Ownership properties, which could be idea later on, which would give me reason to stay in Shared..

why?
will you feel a failure in life if you do not own a property?
there are people whose financial circumstances mean they should drop the aspiration to own and just accept their circumstances.

you could put the money towards learning a skill so you can get a better job?

Definitely not a failure!  This is not an ethical decision, this is a financial planning decision.  I do have a very good job/profession/niche and 2 degrees!  My ethics are in having a balance, which is why parenting my child(ren) is hugely important and not soley buying a house.  I just want to carefully think about viable options at this stage, so I can plan accordingly.