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Originally Posted by Graham
you can always top it up later. (Pension contributions can be backdated to previous years if you get a lump sum)
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I am not sure but I believe that dear old G.Brown has also closed off this avenue.
I took out my first investment product when I was 18 years old and working on a farm earning £11 for a 75 hour week.
It was an endowment with the Co-op. It matures when I reach 65 but is currently worth over £5,000 and still has at least 10 years to run, my contributions to this policy are just under £20 per annum, but I could cash it in at any time for an excellent return on my investment.
The financial scene has changed dramatically in the past few years and endowments/pensions are not always the sensible choice that they were in the past.
You need to work out in your mind what you envisage for the next 10, 20 or even 50 years, difficult eh.
As has been stated above insurance is not for you at your age without dependants, a pension is a good idea only if you have a steady income and reasonable prospects that it will continue. Whilst it is very true that the "sooner the better", you will be paying in for a very long time and pensions and the annuities attached to personal pensions have been hammered in the past few years, again we have G.Brown to thank for that with his £5 billion a year raid on pension funds tax credits as well as the current financial climate which has seen annuity rates drop by almost 40% in the past 5 years.
You need to work out exactly how much you can afford monthly, make a list of all your outgoings first. Would you be able to leave the investment for say 5 or 10 years or longer, or would you need to have quick access in times of need.
I would agree with most of the other comments, find the product with the best interest rate you can, that will not tie up your investments for too long, then if your situation changes you can move your money into a pension fund or property.