Also this is going to ruffle a few feathers but… I think pensions are massively overrated and imo if you have to rely on pensions to survive then you’ve failed at investing and failed at managing your money
I have to say I totally disagree. Your initial investments should be in your pension. Think about it, long-term investment, thus serious compounding. Employer contribution (which you should match). Then the tax benefits.
Your investments should start with pensions and from there go to an ISA with index funds, and if you have money spare after that you can either open a taxable investment account or diversify your portfolio with real estate, venture capital, etc.
It is a safety measure, fair enough we are not guaranteed a future, but at the same time, we are not guaranteed a future with funding, we gotta tie the camel somehow and its not that much being added onto the pension, its small costs, going into a big saving, which will eventually help and support you if need be, if you don’t need it then… it is just extra money. I see it as a win win situation
I agree it’sa safety but at a cost. The cost being not having that money and being able to use it until you are eligible for receiving the pension.
I believe that if one kept the money and invested it themselves into index funds not only would they make more money in the same time period but it would also be liquid and not locked away until your too old to reap its benefits
This is fair, I completely agree with this tbf, I am convinced about this, however, the only thing is, I would be in possession and in control of my money… which isn’t good because I will be too stingy to actually put it there, which sounds sooo silly, I realise this, but that automatic pension without the hassle and ease of mind, really puts it into perspective… at least for me. I just gotta stop being stingy!!