Q: As someone aged under 25, is it better to save towards moving onto the first step of the property ladder or to instead put that money into a pension? I cannot afford to do both but appreciate the need to save. Catherine, London
Buying a property is very rarely going to be an effective substitute for building up a pension fund to pay for your retirement.
Ultimately you will need to invest in a pension and the earlier you start the easier it will be. One option is to start saving money in an Individual Savings Account (Isa) for now and see where you get to over the next couple of years.
Q: Both my husband and I are in our 20s and work full-time, however neither of our employers offer a pension scheme. We recently bought our first home so feel now is the time to look into a pension scheme, but do not know where to start. I have heard of the NEST scheme, which I would certainly sign up for, but should I also be looking into a private scheme to supplement my retirement? A-M, UK
The NEST scheme will be very simple and very low cost. It will be available from 2012 onwards.
In the meantime you can start contributing to a pension now. As suggested elsewhere, if you want a basic, simple pension then look at a stakeholder plan. If you want investment choice and control then use a Sipp.
The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent, professional advice for your own particular situation.
Q: I would like to start paying into a pension - I am 26 - but I do not know how long I am going to stay at my place of work, so I have held off joining the organisation's pension scheme. I did not want to sign up only to leave a year or two down the line.
But if I did join is it easier now to transfer your pension over when you move to a new employer. The scheme offered at my place of work is a defined contribution scheme and fairly new which is why I think it may be more flexible than pensions of the past. Joe, East Sussex
First of all make sure you have at least some reserve of cash to cover emergencies, thereafter it makes sense to join the employer's scheme. Defined contribution schemes are indeed fairly flexible and you should be able to move the money on to a new pension in the future.
Q: I am a 23 year old postgraduate researcher. I am earning enough money to start saving for a pension but am not sure how to go about doing this, or what the best option is as there are no pension schemes offered to us by the university. I will be getting a job in three years' time so would want something that could be carried through into later life and in which payment breaks could be taken (should I come up with financial difficulties in the future). I am also aware my parents have had problems with their pensions - are they a secure investment or am I better off just saving in a regular bank account? James, Southampton
Most pensions offer flexibility over contributions these days so you should not have a problem suspending contributions if you want to.
Yes, pensions are pretty secure these days, with the money held in trust for the members. You could just pay the money into a bank account but it would be a terrible waste.
Take advantage of the tax breaks and invest for the long term; take risks, invest in equities, there is plenty of time to be cautious later.
Buying a property is very rarely going to be an effective substitute for building up a pension fund to pay for your retirement.
Ultimately you will need to invest in a pension and the earlier you start the easier it will be. One option is to start saving money in an Individual Savings Account (Isa) for now and see where you get to over the next couple of years.
Q: Both my husband and I are in our 20s and work full-time, however neither of our employers offer a pension scheme. We recently bought our first home so feel now is the time to look into a pension scheme, but do not know where to start. I have heard of the NEST scheme, which I would certainly sign up for, but should I also be looking into a private scheme to supplement my retirement? A-M, UK
The NEST scheme will be very simple and very low cost. It will be available from 2012 onwards.
In the meantime you can start contributing to a pension now. As suggested elsewhere, if you want a basic, simple pension then look at a stakeholder plan. If you want investment choice and control then use a Sipp.
The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent, professional advice for your own particular situation.
Q: I would like to start paying into a pension - I am 26 - but I do not know how long I am going to stay at my place of work, so I have held off joining the organisation's pension scheme. I did not want to sign up only to leave a year or two down the line.
But if I did join is it easier now to transfer your pension over when you move to a new employer. The scheme offered at my place of work is a defined contribution scheme and fairly new which is why I think it may be more flexible than pensions of the past. Joe, East Sussex
First of all make sure you have at least some reserve of cash to cover emergencies, thereafter it makes sense to join the employer's scheme. Defined contribution schemes are indeed fairly flexible and you should be able to move the money on to a new pension in the future.
Q: I am a 23 year old postgraduate researcher. I am earning enough money to start saving for a pension but am not sure how to go about doing this, or what the best option is as there are no pension schemes offered to us by the university. I will be getting a job in three years' time so would want something that could be carried through into later life and in which payment breaks could be taken (should I come up with financial difficulties in the future). I am also aware my parents have had problems with their pensions - are they a secure investment or am I better off just saving in a regular bank account? James, Southampton
Most pensions offer flexibility over contributions these days so you should not have a problem suspending contributions if you want to.
Yes, pensions are pretty secure these days, with the money held in trust for the members. You could just pay the money into a bank account but it would be a terrible waste.
Take advantage of the tax breaks and invest for the long term; take risks, invest in equities, there is plenty of time to be cautious later.
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