Retirement saving for an older person starting a new job

Libber · 22 January 2018 at 2:53PM

An older relative of mine is leaving a position in local government, and needs advice on retirement savings. She currently has a pot of around £300k in the local government pension scheme, and wants to build up additional savings over the last few years of her working life. She is over 55, and plans to be self-employed/working as a locum until retirement; her expected income is around the higher rate threshold, and her annual contributions/savings are likely to be below the yearly ISA limit. Would she be better off starting a new private pension (possibly with Nest?) or simply putting the money into an ISA?

atush · 22 January 2018 at 5:50PM

First off, she has no pot of 300K. She has a DB penison with some guaranteed beneifts relating to her time in service/final or carreer average salary.

Second, yes she would benefit from paying into a new dC pension, either privately or thru an employer.

If she already has savings for emergenices in cash of 3-12 months outgoings, and other savings/investments then a DC pension with tax releif that she could draw from anythine in future is a very good idea.

Retirement saving for an older person starting a new job

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