Money matters

If you have the opportunity to contribute to a company scheme do so as soon as possible, particularly if your employer is making contributions, or links your pension to your final salary, rather than relying simply on investment growth. If you don't have access to a company scheme then stakeholder pensions are the next best alternative. These are far more flexible than traditional personal pensions (there are no penalties for stopping, starting or changing contributions), and charges are capped at a maximum of one per cent a year.

However, younger people may want to consider saving into an Isa instead. Although the contributions you make do not qualify for tax relief, any interest earned or investment gains are tax-free. And Isas allow you to access your money before retirement age - so can be far more flexible. You can always move these savings into a pension plan at a later stage.