lump sum into savings or pension?

Staffordshire_Reader

Hi, I have maximised my ISAs have a couple of regular savers and no mortgage. I have a lump sum of £3000 should I open a savings account of some sort or would it be better to put it in my pension? I am a 51 year old self employed woman.

dunstonh

Self employed means you dont qualify for the full state pensions. Just the basic (which is £4700 a year at maximum qualification).

Pensions are for income provision and are the best product for doing that. Nothing else beats them. However, they are no good for capital provision. So, it depends on whether you are after capital provision or income.

EdInvestor

Check out your state pension forecast: https://www.thepensionservice.gov.uk

You may not always have been self employed, so you may have entitlement to some S2P as well as basic state pension.

Pension income up to 10k p.a. (by the time you retire) including state pension, will be tax free, so it's sensible to use up that allowance.

How big is your pension fund now?

bendix

Honestly, you two are like Laurel and Hardy. Where you see one, you see the other inevitably a few steps behind.

Andy_L

but which one's which?