Pensions in turbulent times

benfelton

Hi, hope someone can advise.

I started a pension at the tail end of last year and then changed job.

My current company does not have a scheme but i was considering re-starting the pension personally.

However, I am feeling a bit shaky given the state of the market. So the questions: Should i wait until the market starts to get a bit better and perhaps focus my attention on savings and paying off my mortgage? Or, should i put some, but less into savings and paying off my mortgage and re-start the scheme? I am also only 31 so have quite a few years left to run on the pension, so is there an argument of buy low etc?

Thoughts highly appreciated.

Ben

dunstonh

However, I am feeling a bit shaky given the state of the market.

Why? The markets are not partiuculary bad at the moment. Slightly down but nothing big. And anyway, your monthly payments now buy more units then they did at any point in 2007.

Markets go up and down. That is normal. Going down is what you want in the early years (or even decades if you are young) as you get to buy more for your money.

Should i wait until the market starts to get a bit better and perhaps focus my attention on savings and paying off my mortgage?

In other words, you want to wait for it to go up so you miss out on all that growth before you then invest at a peak just in time for it to go down again.

I am also only 31

So why are you worrying about a small market correction on money that you will have invested for the next 35/36 years?

Also remember that stockmarkets are not all one level of risk and you dont even have to have any equity investments (although at 31 that would be silly).

benfelton

Thats great, thanks for your response