Will my meagre pension let me down? |
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Source: Financial Mail Women's Forum, 8th May 2010 I gave up my career to look after my children five years ago and have only recently returned to work part-time. I have no savings and am anxious that I have only £15,000 in my pension. I am 44 and have very little spare income but could probably put away £100 per week. Should I start putting money into my pension (which has not performed particularly well) or am I better off saving a lump sum into an ISA or a savings account? - Natalie, West Yorkshire One of the disadvantages of contributing to pensions is that you will not be able to access this before the age of 55. Given that you have no savings, I would suggest that any investments you now make allow you to access the plans prior to this in case of any emergency. With this in mind, I would suggest that you consider regular contributions, split equally between an equity ISA and a cash ISA. The cash ISA would provide you with short term funds if needed in an emergency. The equity ISA would be a longer term investment but could still be accessed if absolutely necessary. For your personal pension, part of the poor performance might be due to difficult market conditions in the last few years but you should consider having this reviewed to ensure that it is appropriately invested and with the most suited pension provider. - Lesley Collins, Chief Executive, Independent Women |
