Is it worth starting a pension fund?

[Totallycluelessoverhere]

I currently don’t have any pension provision. I am almost 40 and have spent the last 15 years being an unpaid Carer. I am unlikely to be in employment anytime soon but I am in a position where I can save £100 a month. This doesn’t feel anywhere near enough to start a pension investment but if it is enough then I feel it is worth investing it anyway as my mortgage will be paid off in a few years and then I will be able to increase my pension payments to around £400 per month.
Is it possible to start a pension with only £100 a month investment? Are there any providers who offer pension savings with low contribution amounts?

Of course it's worth it and yes, you can pay £100 per month into a private pension.

Definitely worth it, £100 a month isn't a catastrophic pension contribution at all, especially if you can up it later.

Are you employed now? If so, you might be able to make additional voluntary contributions to a work scheme? If not, I think you'll want to have a look into SIPPs, or you might just be young enough to have a lifetime ISA as an option. (I'm not sure if it's 40 or under 40?)

It is always worth saving. Do you pay tax? If not the an ISA might be better than pension at the moment. But I guess it depends where the money is coming from. If you have slightly complicated finances at the moment probably best to speak to an IFA to determine the most tax efficient way of saving. Or at the very least have a look at websites like moneysavingexpert.com

No, I’m not in employment. My husband is in full time employment and has pension provision but I really would like to start my own pension investment. I know that technically his pension is 50% mine but I am also mindful of the fact that he could die before me after using up the funds, especially as statistically men die younger than women and he is a little older than me. Sorry if I sound all morbid, I’m just trying to make sure I don’t end up a complete pauper in my old age.
I am planning a return to employment when Caring allows me to do so But for now it would be around £100 a month investment and increasing that to around £400 in 4 years when the mortgage is paid

Even if you don't pay tax, the government will still pay 25% of what you pay into your pension up to two thousand and something pounds a year, so if you pay in 100 a month, they will add in 25. So that really helps. There are lots of stakeholder pensions if you aren't confident in choosing self investment and Yes, you can pay in small amounts. I am paying £20 a month into one for my child as, I figure it's better than nothing and the government add in £5 every month so it will be worth more than in a savings account. Obviously she can't access it til she's much older.

Firstly can you claim Carers Allowance?

Secondly check your state pension position online - if you haven’t paid NI (or had it paid in the background while claiming certain benefits) you might be shocked how little it is

Thirdly consider paying some of that NI to secure your state pension before investing in something that may lose you money

Fourthly see a Financial Adviser

Us I have checked my NI record vancleef and I have full contributions for every year since the age of 16. I do claim carers allowance and also child benefit so even though I haven’t been working I have full NI credits.
pigear that’s really helpful to know. I wasn’t aware that I would get the tax relief. I assumed I wouldn’t die to not earning enough to pay income tax. It seems I can’t really lose by opening a pension investment.

That was my thoughts about it too! I am also in my 40s and not currently earning and am paying £100 in. I figure it's better than nothing and even if investment goes down, with the government's addition it is unlikely to lose that much, especially as we have a longer timeframe we are investing over.

I was same as as you, I now have a sipp, as pp said what you invest the gov tops up.
I am mostly in vanguard funds. Look up vanguard, you can have a sipp directly with them now.
I have life stragety 100 which means all equities no bonds. As I get older I will go to 80/20 etc then 60 bonds, 40 equities.
You invest in everything that way.
I'm also in a few other places, very small investment eg Scottish mortgage Trust which is my sort of gamble fund. Its been flying through lock down!

Following as in a similar position

I’d look into opening a Lifetime ISA now even if you just put the minimum into it - you need to open it before you’re 40 and can continue to contribute until you’re 50. Gives you flexibility if you can afford to pay more than £240/month when you’re still not earning (that’s the max you’d get tax relief on), as you could put the “extra” into the Lifetime ISA and get a 25% bonus.

I'm not sure if an LISA is better than a SIPP. But you can open an LISA with barely any money so long as you open it before you turn 40. You can then keep paying in as you wish. So it might be best to get it open before your birthday!

Only other thing to note with a LISA is that it counts as capital for means-tested benefits, whereas a SIPP wouldn’t. Don’t know if that’s an issue for you, though.