Stakeholder Pension

[juneybean]

I was paying into a stakeholder pension but when I became a student I put it aside until I got my full time job.

I still don't really understand pensions, I'm only 23 years old, should I continue to pay into my pension, or should I just rely on a state pension when I'm old?

Or is that just selfish!?

Any advice, greatly appreciated.

Hmm, I don't think relying on the state pension when your old is selfish. It is very foolish however.

It's not a lot of money and it will almost certainly be less by the time I get to that age (and I've got 13 years on you!).

You're in a good position in that you're so young. Saving a little bit regularly in a pension now will build up. There are tables which show what you have to put in to get x amount when you retire. They always emphasise how much less the monthly payments will have to be if you start early.

not foolish, but stupid. if you want live in poverty in your old age that is of course your choice!

Yes you should continue to pay. However, at the moment, I would wait a little while until the worst of the current crisis is over as you run the risk or your money going down in value.

By the time you approach state retirement age, it is likley to be age 70 or above. Do you really want to have to work that long?

Also, state pension is likley to fall in real value terms as the burden of supporting an increasing ageing population cannot be borne by the workforce.

sorry should have written not selfish but stupid. also I disagree with goosey loosey, you should pay in regardless of current market, you have a good 40 years for it to recover!