Retirement with no pension

Trust_me

Hi,

My mother is about to retire in 5 months with no pension at all. we ( her children) have given her 10k and I was just wondering the best way for her to use it?

Savings or should it go into a pension? Is it even too late for a pension??

Advice would be much appreciated.

Thanks

Silvertabby

Not even the State pension ? Or is she too young for that?

Trust_me

Hi, sorry, yes she would receive the full state pension.

LHW99

Has she never had a pension at all while working? (you say "retire" implying she was employed at least part-time).
She can put up to her net earnings into a SIPP or personal pension and get tax relief paid in from HMRC. As long as she is over 55 she can withdraw money from that immediately. 25% of what is there would be tax-free, and if she keeps the total taxable amount takenbelow the personal allowance (including the state pension in the calculation), then it would all be tax-free. Hargreaves Lansdown don't charge if its kept in cash I believe.

Trust_me

Hi, she has been nursing all her life , mostly part-time in, and cleaning Full-time the past 4 years with half of that being voluntary for a charity so is earning about 7k a year off that and then about 5k a year in widows pension.

I’m not sure what you mean by 25% tax relief, she doesn’t pay tax due to the amount she earns. Sorry if I’m being a bit dull here but pension is not my thing. Thanks

Trust_me

She’s never had a pension it would seem

Mnd

Does she own her home or does she rent

OldMusicGuy

Trust_me wrote: »

She’s never had a pension it would seem

How come she's worked in nursing but doesn't have a pension? If she worked in the NHS, surely she must have a pension with the NHS.

Trust_me

She owns here own home.

I’ve contacted NHS pension to see if they can locate anything as I was surprised she didn’t have one. She thinks it’s because she opted out many moons ago when she went part-time but can’t be sure

xylophone

She thinks it’s because she opted out many moons ago when she went part-time but can’t be sure

And when she was full time? This needs investigation.

Has she obtained a state pension statement?

Is a COPE shown?

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

OldMusicGuy

Trust_me wrote: »

I’ve contacted NHS pension to see if they can locate anything as I was surprised she didn’t have one. She thinks it’s because she opted out many moons ago when she went part-time but can’t be sure

They should be able to help out. My wife was part time with the NHS and still got a pension.