How do you get your first step on the property ladder?
With stamp duty removed for first-time buyers on properties worth up to £300,000 many young people have started saving hard for a deposit on their first home. This has led to some hopeful buyers cutting pension contributions to free up cash.
This might seem like a good idea now. But will your future self thank you? Putting money aside for a deposit is becoming harder for those relying on their salaries. That’s why some first-time buyers, without the benefit of family support, may be tempted to opt out of automatic enrolment pension schemes. Anyone facing such a decision should think carefully before opting out of auto-enrolment altogether.
Opting out means that an employee will lose the cumulative effect of his or her employer’s contribution. Likewise, it’s a fact that making pension contributions when you are younger is much more beneficial than making contributions as you near retirement.
Seeking advice and considering your options today is much more prudent than just assuming that nothing is as safe as houses.
Call us today on Oakham 01572 759759 or Stamford 01780 437500 to arrange an informal meeting – at a time and a place to suit you. Or pop into one of our offices.
The value of a pension will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.