With government's introduction of Stakeholder pensions in 2001 there are now plenty of low-cost pension offerings being put out by the pensions providers to enable most people, especially those on lower incomes (even those not working), to set aside funds for their retirement. (more about Stakeholder)

And the key to Stakeholder as to any other pension is to start contributing as early as possible and keep making contributions for as long as possible. That way your pension pot has time to fill up and for the investment returns on the fund to compound through reinvestment over many years. The result should be a significant sum of money to invest when you retire.

If you haven't set up a pension yet, then armed with these basics it is now time to ask us to obtain some quotations from pension providers. There is no time like the present. Once you have a range of options to consider you can then compare and contrast what's on offer.

No one will suggest that a pension should be the be all and end all of your personal finance arrangements. But putting one in place is an important long-term investment decision. Even if retirement seems a long way off right now, just think of what life would be like if a state pension of the equivalent of £100 a week was all you had to live on…

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