The Goverments New savings account.

JudiB

I’m on a zero hours contract and have to wait another 6years and three months for my state pension my NHS pension is only £1,300 a year and I have been in receipt of that for a few years. I am desperately trying to save cash for my retirement but get thwarted at every turn. I can’t have a LISA because I’m too old. The new savings account over two years (with the option of four) again sounds amazing but I’m not entitled to tax credits so thwarted again. Are there ever going to be savings accounts to help people like me who have a little cash in the bank but due to divorce no decent private pension. Would value any advice on how to boost my funds of which I can’t afford to gamble with.

ColdIron

Have you had a look at the How to Start Saving Get max interest from every penny link above? Could be a good starting point. You could contribute £2,880 to a pension and HMRC would add £720 to it, no need to invest, you could hold it as cash

dunstonh

. Are there ever going to be savings accounts to help people like me who have a little cash in the bank but due to divorce no decent private pension.

Have you considered a pension?

Arwing

Are you talking about Help to Save? If so yes its pretty handy, I've been on it for 3 months and saving £50 max a month for 50% off the government sounds like a good deal to me.

Arwing

P.S people on universal credit are also eligible

LHW99

Have you checked your state pension position? Paying additional years could be good value, but you need to check what you have already / could get to if you pay additional voluntary contributions.

JudiB

I have checked my state pension forecast and because I worked for the NHS my pension was contracted out for a time. Now that I am working for minimum wage although I don’t earn enough to pay NI contributions the government credit my account with them so hopefully if my forecast is correct by the time I reach retirement at 66 I should have sufficient contributions for a full state pension.
Thanks for the advice

JudiB

Not really sure how to save into a cash pension independently. Do you have to be a taxpayer to receive contributions from the government. This would be something I’d be really interested in doing.

ColdIron

Even non earners can make pension contributions and receive tax relief if you are under 75. You add up to £2,880 and the pension provider grosses this up to £3,600, the £720 is tax relief. Some providers like Hargreaves Lansdown don't charge for SIPPs and you can hold your contributions as cash

colsten

ColdIron wrote: »

You could contribute £2,880 to a pension and HMRC would add £720 to it, no need to invest, you could hold it as cash

How/where could you hold it in cash? What about charges for the account?

ColdIron

Hargreaves Lansdown allow you to hold cash at no charge, they will even pay you a few pounds in interest. HL don't charge to open or operate a SIPP and there are no drawdown charges. There are exit fees (cheapish in a SIPP, expensive in drawdown if you close early) but they are easily avoided or at least deferred