PENSION PLANNING WHILE NOT WORKING DUE TO ILL HEALTH

Michelle_Stepney

Hi,
I currently have 9 years of a Civil Service pension and 9 years of a company pension, but since stopping work about 7 years ago due to ill health and now aged 44 and living solely on benefits I want to try and put some money away for the future.
Should I start a pension even though I don't have much spare? 
If I managed to save £6,000 in a bank acct etc my benefits will stop for obvious reasons, is this rule the same with pension pots?
I'm not sure I've got the funds to afford an IFA to get advice but I want to be sensible.
Has anyone got any advice that might help?
Thanks in advance.

Albermarle

First can you just clarify what the company pension is ?
Is it a DB scheme that guarantees you a certain income on retirement or is  a DC scheme where there is a pot of money that is invested ?

xylophone

I assume that you are credited with NI for purposes of your state pension?

If you have no relevant earnings, you are limited as to the amount you can contribute to a personal pension and receive tax relief.

You would pay up to £2880 per annum to the provider - the provider would claim tax relief of up to £720 and add it to your pot.

is this rule the same with pension pots?

No, but once you reached Pension Credit age you would be expected to  access your pension to support yourself. 

A simple stakeholder might suit 

https://www.standardlife.co.uk/pensions/personal-pension/stakeholder

xylophone

And see https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits

Brynsam

Michelle_Stepney said:

Hi,
I currently have 9 years of a Civil Service pension and 9 years of a company pension, but since stopping work about 7 years ago due to ill health and now aged 44 and living solely on benefits I want to try and put some money away for the future.
Should I start a pension even though I don't have much spare? 
If I managed to save £6,000 in a bank acct etc my benefits will stop for obvious reasons, is this rule the same with pension pots?
I'm not sure I've got the funds to afford an IFA to get advice but I want to be sensible.
Has anyone got any advice that might help?
Thanks in advance.

Worth a word with http://turn2us.org.uk who are specialists in benefits and I think will have met your questions many times before, so be well placed to give you information.

greatkingrat

I suspect the civil service pension plus the other company pension and the state pension will come to more than you are currently getting in benefits. 

So if you have any spare money at the moment, you may be better off using now rather than saving it for retirement.

Neasy

Is your deferred Civil Service pension in the Classic scheme? If so, is there a possibility you could access it early due to Ill Health? 
From the website:
"If you have left your employment and have a preserved pension in classic only, you may apply to receive your pension benefits early if your health breaks down after leaving."

https://www.civilservicepensionscheme.org.uk/members/ill-health-retirement-guide-for-members/ 

Michelle_Stepney

Thank you all so much.
I'm not sure of the details some have asked, but I'll look into everything everyone has mentioned.
Thanks for your time.