36 years old on Universal Credit, should i think about private pension

eggyf7

Hi, Im currently on UC and PIP due to mental health issues but starting to wonder what will happen if i hit the 65+ years old time of life. I know i will get state pension at some point but my question is should i be trying to put away any of my income into some sort of a private pension scheme? Also im Bankrupt, dont know if that affects it!

Brynsam

'Should' and 'able to' aren't one and the same thing. Given all the issues you have, maybe now isn't a realistic time to try and put money into a pension if you are struggling in so many other directions/are currently a bankrupt.

AnotherJoe

Focus on getting your life on an even keel now first rather than worrying about 30 years time.

justme111

No
...............

Bravepants

Agree with everyone else, take the time to get yourself sorted in the here and now, and the future will take care of itself.

stoozie1

I don't feel we know enough to say really.

It could help your mental health to have fewer concerns about money in later life (it helps me to feel I am squirreling something away). And if you are able to make savings from your current budget, great!

But as others have said, if things are too tight, or it would lead to too much additional anxiety, then prioritising now may be wiser.

Malthusian

Universal Credit will be replaced by the State Pension when you reach State Pension Age. The Personal Independence Payment should continue (over 65s making a new claim have to claim Attendance Allowance rather than PIP, but if you are still on PIP when you reach 65, this will continue past 65).

The State Pension is often more generous than Universal Credit. So in theory when you reach State Pension Age one element of your income should go up and the other will have stayed the same.

I say in theory because in reality both your personal circumstances and the benefits system will almost certainly change beyond recognition by 30 years time.

Nonetheless, if your current income is adequate there is no need to pay into a private pension, and if it isn't you don't have any spare income to put into one anyway.

Focus on your current wellbeing and ensuring you have an adequate emergency fund (three to six months' expenditure in cash).

atush

Start by learning to save. Pay any debts. Get yourself well.

michaels

Pension contributions can be deducted from your income before any tax credit assessment is made so if you are on a 73% marginal withdrawal/tax rate they can be very cost effective.

Dox

michaels wrote: »

Pension contributions can be deducted from your income before any tax credit assessment is made so if you are on a 73% marginal withdrawal/tax rate they can be very cost effective.

Cost effective is not the same thing as affordable....

justme111

or beneficial. .
as another poster pointed above , SP may well be more than the universal credit now - how does it benefit one to put money into pension in the op's circumstances if it was so ? Pensions are needed to account for a disparity in income between working and nonworking life. If disposable income during working life ends up being higher than disposable i come in retirement on SP would be. Arguably even for many working people if they earn averagr/lrss than average wages pension does not make sense because if they pay mortgage and have children as those two big exoenses would go in retirement living on SP would not mean any drop in income for them.