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Too Late for a Pension

I am 56 in a few weeks time and have a military pension that is not sufficient to sustain us. With that in mind, I am working full time and wonder if it is too late for me to put funds into a pension that will make any difference to my retired life. I do not wish to work beyond 65.

Comments

  • dunstonh
    dunstonh Posts: 118,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Its not too late and from an income provision point of view, the pension does give the highest level of income. Whether its the best option or not though would depend on your circumstances and the amount you are looking to put aside.

    As a rough basis, you need about £100,000 for every £5000 income per year. So, how short are you in income and have you the ability to build a big enough pot in time to make that up? What sort of commitment to saving were you looking to make each month?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    You also need to check your state pension(s) forecast.

    There is a tax issue involved here which could have quite a serious impact on whether it's best to save in a pension or in a shares ISA, for instance.
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 118,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    There is a tax issue involved here which could have quite a serious impact on whether it's best to save in a pension or in a shares ISA, for instance.

    Maybe but for income provision only, the pension beats ISA. If there is a shortfall in income, then going with the option that gives the most may be neccessary.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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