Peoples pension

JudiB

Hi
I have a very small NHS pension which I have been in receipt of since 2008 (awarded early due to ill health)
By my state pension retirement age of 66 I wii be entitled to full state pension (6years time) at the moment I work in hospitality on a zero hours contract averaging about 20hours per week at minimum wage. I don’t earn enough to be automatically enrolled in the Work Place Pension but could I open this privately? I could afford to save £250 per month into it, would I still gain extra top up from hmrc? even though I actually pay very little tax per year.
I’ve looked at a sipp but feel this is too complicated for me and I can’t afford to gamble my money. I know I won’t get a lot after 6years but it will be more than I have now. If I was to stop work could I continue to pay into the pension?
I’m a total novice with all this and have buried my head in the sand too long thinking I had sufficient money. Anyone help please.

JoeCrystal

Could you ask to be enrolled? I was under the impression that the employer cannot refuse you if you still want to join their pension scheme, regardless of how much you earn.

If you are so unwilling to gamble the money, maybe the best thing to do is to save up the money rather than invest it? How much do you need to live on for example? Is state pension alone sufficient enough to cover your expense?

I do wish you all the best with preparing for retirement so soon, but you have recognised the problem and is willing to sort it out. There is a lot of people out there who still buried their head in the sand.

AnotherJoe

Even if you earn nothing, up to age 75 you can pay £2,880 a year into a pension and it will be topped up to £3,600.

JudiB

I know I’ve left it very late and I’m angry with myself for having done just that.
I have a small property which I rent out giving me some income. I also have savings of just over 100k but it is being eaten quickly and although I think I have the best interest possible on the cash I’m unwilling to gamble with investments so I know with inflation this capital is not growing.
I do save the £250 per month but although I don’t pay much tax I wondered if I was still allowed a cash injection from hmrc if I had a work place pension which would be more than I would achieve with just a savings account and interest.

JudiB

So does that mean that if I ask my employers to put £250 per month of my wages in a pension they will and although I know the employer won’t contribute any would the tax man?

Asghar

What's a "Peoples pension"?

triplea35

Strange rules! Your employer does not have to enrol you if you earn less than £10,000.
You can still join their pension though and your employer can not refuse.
They must make employer contributions if you earn more than £116 a week (£464 over 4 weeks or £503 per calender month)

So tell them you want to join and contribute and they will have to make minimum employer contributions.

http://https://www.gov.uk/workplace-pensions/joining-a-workplace-pension

dunstonh

The People pension is a product provider. Its a basic pension product aimed at the bottom end of the market. You tend to find it is used mainly for small employers who need to comply with auto-enrolment. It's not the sort of pension an individual would use for external retirement provision.

JudiB

So all in all I need to bite the bullet and invest in a sipp, so irrespective as to whether I’m working or not I can still contribute monthly to it! Will I get a contribution from Hmrc even if I’m not paying tax? Sorry that’s another question !
Hargreaves Landsdowne run sipp’s are they reputable to invest with?

dunstonh

So all in all I need to bite the bullet and invest in a sipp

or a personal pension or a stakeholder pension.

so irrespective as to whether I’m working or not I can still contribute monthly to it!

yes. Everyone under the age of 75 has a minimum £3600 they can contribute to a pension each tax year.

Will I get a contribution from Hmrc even if I’m not paying tax?

Yes you get tax relief even if you are not a taxpayer (caveat - certain workplace schemes cant handle it).

Sorry that’s another question !
Hargreaves Landsdowne run sipp’s are they reputable to invest with?

Reputable but expensive (although caveats to that as well as someone would no doubt point out).

JudiB

I don’t know what a stakeholder Pension is but I think I do understand a little about a sipp, so that’s what I need to do. It’s finding a suitable company to use.
Thank you for your help it is much appreciated.