starting a pension at 55?

lin473

Hi - I do not have much of a head for financial matters so I really need some advice in as simple terms as possible!

I have no pension whatsoever .

My OH has been badly advised and i suspect ripped off in the past so his pension pot at 61 is quite small - about 100,000 I think.
He is in poor health and is limping along to retirement on part time hours .

I have qualified for a full state pension as I have been occupied with home responsibilities almost the whole of my adult life either as a parent or on carers allowance as i am full time carer to my profoundly disabled son.
As we are shortly to pay off our mortgage and have a bit of savings i am in a position to set aside a bit of money for a private pension of my own - maybe 150 a month.
Is it worth it?
Can i put some savings in to boost the fund?
My only income is my carers allowance so i do not pay tax.

I would value some advice and maybe point me in the direction of an appropriate product
Thanks

atush

If you are not earnign, you can contribute up to 2880 per year which is grossed up to 3600 by tax relief. You can do this every year up until you 'retire' or carry on doing so until you want to draw some or all of the money. You cannot put in more. But 150 a month is less than this so gives you room to out in more from your savings if you like up to 2880.

However, you could open a PP for your husband at the same time and contribute the same (or more up to how much he earns each year). This would boost your pensions as a couple, but not yours individually.

If you want more equity exposure than 2880 per year, but want it in your name, you could drip feed some money into a S&Sisa in your name. Although you'd get no tax relief, the growth would be tax free as would withdrawals later (handy if your income will exceed your PA).

kidmugsy

lin473 wrote: »

I have qualified for a full state pension as I have been occupied with home responsibilities almost the whole of my adult life either as a parent or on carers allowance as i am full time carer to my profoundly disabled son.

For anyone reaching State Pension Age after 5th April 2016, the number of years of NICs required to get the full basic state pension is 35, up from the current 30 (but down from the old 44 for men and 39 for women). You might want to check whether this change will affect you.

xylophone

You might want to check whether this change will affect you.

The OP will continue to get credits as she cares for her profoundly disabled son?

https://www.gov.uk/carers-credit/overview

https://www.gov.uk/new-state-pension/overview

http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/

As a non earner you can pay in up to £2880 and the provider will claim tax relief, bring your contribution up to £3660 per annum.

lin473

Thank you for your replies .

I worked full time for 3 years so my NI contributions from that added to my 33 years of parenting/caring is already enough i believe.

I hope to carry on caring for my son as long as he lives or as long as possible so i'm pretty sure I have my full state pension.

I think i will go for it - does anyone recommend a provider?

xylophone

does anyone recommend a provider?

Have you had a look at the Cavendish site?

You might find one of their offerings suitable?

Or Prudential ? http://www.pru.co.uk/

Or Royal London? http://www.royallondon.com/

Or Standard Life? http://www.standardlife.co.uk/c1/index.page


https://www.gov.uk/personal-pensions-your-rights/personal-pensions

lin473

yes i did look but have yet to study the options in detail.

It is all bewildering to me and i don't really know what i am looking at so i was hoping someone who is more financially savvy would have a recommendation for my circumstances.

I will try to get my head round it all.

atush

if you want recommendations as to investments, you need to pay an IFA (unbiased.co.uk)

Or you pick a lifestyle fund such as one of the Vanguard range with a % of equities that fits your risk profile. From 0% to 100%.

xylophone

If I were in your shoes, and only able to make small contributions, my inclination would be to look for "simple and cheap".

http://www.moneywise.co.uk/pensions/managing-your-pension/the-top-pension-providers-2013

The above might be worth a look - The Scottish Life stakeholder is available through Cavendish.