Is it worth starting a pension at age 49?

mrblobby888

Hi. I have only been employed for around 14 months since I was 18 and have claimed job seekers allowance for only about 6 months in 30 years. I have never payed anything into a pension at all so it will be tiny.

I wonder is there any reason to start a pension now at age 49? I have enough to manage fine without one but if it is a way of making some extra money then i would like it.

I have zero knowledge of pensions and such things.

Thank You for any advice.

LHW99

If you can afford to do it then the government pays tax relief in - so for every £80 you you pay, you get £100 of investment.

Also if your employer is of any size then you would get an employers contribution once the company enters autoenrollment - also 'free' money.

Since the state pension age is likely to continue to get later, even a small pot could help fill the gap between when you want to retire and when state pension comes along.

atush

mrblobby888 wrote: »

Hi. I have only been employed for around 14 months since I was 18 and have claimed job seekers allowance for only about 6 months in 30 years. I have never payed anything into a pension at all so it will be tiny.

I wonder is there any reason to start a pension now at age 49? I have enough to manage fine without one but if it is a way of making some extra money then i would like it.

I have zero knowledge of pensions and such things.

Thank You for any advice.

The main question is how you are 49, having only worked 18 months, and not claimed benefits apart from JSA for 6 months I want to know how you manged to live lol.

apart from that, a few things. First of all, if you haven't claimed benefits you are entitled to, do so. Now. As they get you NICS for state pension. AS it stands, you may not have enough years credited to claim anything at all.

Second, you can start a pension now, and get tax reelif even if not a taxpayer.

As a non taxpayer (who earns nothing or up to the opersoanl allowance of 10K, you can put in either 3600 per year (which means you put in 2880 and the gov puts inthe rest) or your entire income (say that is 10K you can out in 8K and the gov will raise it to 10K) whichever is larger.

so you could as a non earner/taxpayer put in 2880 for the next 6 or more years (17,280) and get back 3600 x6 = 21.6K so a gain of 4320 overall (less any fees and plus any increases due to investment growth/dividends etc)