Given the credit crunch and falling markets is now a good time to start a pension?
I live in the UK and am looking to start a UK pension. With the markets so low is it a good time to start a pension right now?
I would reiterate an earlier answer and say that it is ALWAYS the right time to start a pension. Over the full term of the pension, the ups and downs should really iron themselves out.
If you are over twenty, then you should consider a pension, most UK employers are now obliged to offer a pension scheme that can easily be transferred when you change jobs (stakeholder pension). Many employers actually contribute to the scheme too – if this is the case, then YES – it’s a no-brainer, take advantage of any company scheme that offers to contribute to your pension (the company I work for contributes 7% of my income, and I contribute another 7%). Even if they don’t contribute, it should be very easy for your employer to arrange your contributions and take care of the tax issues.
The only circumstances where you don’t need to think about a pension is if you are working on a casual basis or likely to earn vast amounts that will enable you to make your own financial arrangements for your future.
My final bit of advice is this: don’t go half-measures – if you decide to do this, make a real go of it to make sure you end up with a decent income. If you just ‘dabble’ and don’t really put a significant amount in, then you will have wasted all your money. Consider this, if you DON’T put money aside for your pension, what will happen? The state will provide you with income support up to a set level. If you only put a small amount into your pension, you may find that all you have done is to take the onus off the state to look after you, and you may well have only provided enough to just keep you above the level where the state was going to support you anyhow! So…either do it properly or don’t bother – that’s my philospohy!
March 2nd, 2010 at 6:58 am
Buy canned food and bottled water.
References :
March 2nd, 2010 at 7:18 am
I get your point, when a market hits rock bottom, the only way is up. But in all honesty, it is always the right time to start a pension.
References :
March 2nd, 2010 at 7:43 am
At this time you should think ways to provide food on your table and other necessities first before you start a pension.
References :
March 2nd, 2010 at 7:56 am
I would reiterate an earlier answer and say that it is ALWAYS the right time to start a pension. Over the full term of the pension, the ups and downs should really iron themselves out.
If you are over twenty, then you should consider a pension, most UK employers are now obliged to offer a pension scheme that can easily be transferred when you change jobs (stakeholder pension). Many employers actually contribute to the scheme too – if this is the case, then YES – it’s a no-brainer, take advantage of any company scheme that offers to contribute to your pension (the company I work for contributes 7% of my income, and I contribute another 7%). Even if they don’t contribute, it should be very easy for your employer to arrange your contributions and take care of the tax issues.
The only circumstances where you don’t need to think about a pension is if you are working on a casual basis or likely to earn vast amounts that will enable you to make your own financial arrangements for your future.
My final bit of advice is this: don’t go half-measures – if you decide to do this, make a real go of it to make sure you end up with a decent income. If you just ‘dabble’ and don’t really put a significant amount in, then you will have wasted all your money. Consider this, if you DON’T put money aside for your pension, what will happen? The state will provide you with income support up to a set level. If you only put a small amount into your pension, you may find that all you have done is to take the onus off the state to look after you, and you may well have only provided enough to just keep you above the level where the state was going to support you anyhow! So…either do it properly or don’t bother – that’s my philospohy!
References :
http://www.thecreditcruncher.com