pension or ISA

Karinia

Thank you very much for all your help. I'm really getting interested in all this stuff.:j

The manager at Marion's workplace has offered her more hours for about a year to cover for a lady on maternity. With her state pension this would then take her into paying tax. Could she put her state pension on hold while she earned more - which she could put in to her SIPP.
Is this possible ?
Is it worth delaying pension at all - we have read the details about getting 10% more but obviously takes a long time to recoup the money.
TIA

jamesd

Yes, she could put her state pension on hold. It can be done exactly once in a lifetime. The best option for someone in reasonable health is generally to suspend it for three to five years then take the higher ongoing pension income option. That gets a substantially higher pension that lasts for life so it provides good protected income for the case where you live for a long time.

The higher pension is particularly handy for women who might have reduced pension income from the work pensions of their husband after their husband dies.

Of course, she might not be able to suspend it for three to five years if she needs the income before then. That's just what the calculations about income and life expectancy say on average.

This stuff is quite interesting. So is investing, once you get interested and involved. Lots to learn, though.

Karinia

Thanks James you are so cool :j

I will tell Marion and think she will be all sorted now. Hope all my nans friends don't come asking me to help them!!!:eek: