Pension help

Nickyd24

Hi I’m nearly 50 years old and currently don’t pay into any pension at all.
I would like advice on what private pension is best I would like to pay as little as I can but with a good return any advice would be helpful.

xylophone

What is your employment situation?

AnotherJoe

Nickyd24 wrote: »

Hi I’m nearly 50 years old and currently don’t pay into any pension at all.
I would like advice on what private pension is best I would like to pay as little as I can but with a good return any advice would be helpful.

I suggest you need to alter your aims. The aim should not be to pay as little as possible, it should be to pay as much as is necessary, or as much as you can, if that's less. WHIch it probably will be.


Its your money that you'll get back, you aren't losing it like tax, by paying as little as possible you are saying to your future self, who will be the recipient of that money, "tough lucky buddy I've decided to give you as little as possible".

Nickyd24

xylophone wrote: »

What is your employment situation?

Hi I currently work in a college. But one of my coworkers looked into their pension scheme called nest and apparently it’s not that good.
I did contact my employer about why I’m not paying into one but it’s because my income is less than £10,000.

BoGoF

Have you any pension provision at all? From previous employments?

AnotherJoe

Nickyd24 wrote: »

Hi I currently work in a college. But one of my coworkers looked into their pension scheme called nest and apparently it’s not that good.
I did contact my employer about why I’m not paying into one but it’s because my income is less than £10,000.

It's all relative. Not that good compared to others, substantially better than nothing. If your employer will pay into it then by not having one you are turning down free money. Ask how much your employer will pay in if you have one.

Albermarle

I think the £10,000 salary is the only the trigger level where the employer has to auto enrol you and then you have to opt out if you do want to be in the pension scheme .
There is a lower figure of approx. £6,000, where you will not be auto enrolled but you can still opt in to the scheme. If you can do this , then you will benefit from contributions from your employer as well as adding your own contributions. The fact that NEST may or may not be the best scheme around is a minor issue compared to being able to get contributions from your employer ( free money in effect )
So I suggest you contact your employer again ( if you are earning more than £6000 pa) and say you want to enrol/opt in .
Hopefully I have the right info and someone else may want to confirm this , or not?

xylophone

Hi I currently work in a college. But one of my coworkers looked into their pension scheme called nest and apparently it’s not that good.
I did contact my employer about why I’m not paying into one but it’s because my income is less than £10,000.

See below.

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

Even if you earn under £10,000


You can usually still join their pension if you want to. Your employer cannot refuse.

If your income is low
Your employer does not have to contribute to your pension if you earn these amounts or less:

£503 per month
£116 per week
£464 per 4 weeks

If you earn over the above then you ask to join the scheme so as to get an employer's contribution.

Otherwise you might consider a stakeholder - you can contribute up to your net salary to the scheme and receive tax relief.

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

For example, if your salary is (say) £9000 per annum then you could pay up to £7200 to the pension and the provider would claim up to £1800 and add it to your pension.

Have you checked your state pension situation?

https://www.gov.uk/check-state-pension

Do you have any pensions from previous employers?

https://www.gov.uk/find-pension-contact-details

pile-o-stone

I don't know if this is still valid, but years ago I remember watching a TV program about pensions that said that having a small pension is worse than having no pension at all because the small pension income could have an impact on benefits paid in retirement, like council tax rebates, pensions credit, etc.

Is that still the case?

dunstonh

pile-o-stone wrote: »

I don't know if this is still valid, but years ago I remember watching a TV program about pensions that said that having a small pension is worse than having no pension at all because the small pension income could have an impact on benefits paid in retirement, like council tax rebates, pensions credit, etc.

Is that still the case?

No. That stopped being the case over a decade ago. There was a period when small pensions would reduce benefits on a £1 for £1 basis. Now that is no longer case as it discouraged people making provision for themselves.

Nickyd24

No never paid into any work pension at all