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

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

B) 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!
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Comments

  • Bookworm225
    Bookworm225 Posts: 321 Forumite
    100 Posts Name Dropper
    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
    Unicorn79 Posts: 80 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    edited 25 May at 11:53AM
    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
    ripplyuk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Would you be renting from the HA or would it be private rented? 


  • MichelleUK
    MichelleUK Posts: 441 Forumite
    Part of the Furniture 100 Posts
    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
    Bookworm225 Posts: 321 Forumite
    100 Posts Name Dropper
    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
    Albermarle Posts: 27,317 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    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
    Myci85 Posts: 363 Forumite
    Eighth Anniversary 100 Posts Name Dropper Combo Breaker
    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
    Unicorn79 Posts: 80 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    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
    Unicorn79 Posts: 80 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    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
    Unicorn79 Posts: 80 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    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.
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