58 years old. Any point in starting to save for a pension now?

ronaldadio

Hi all and Happy New Year!!!

I've had issues in the past & lost all of my pension contributions a few years back - long story, but basically I now don't own a home - we rent - and don't have any money put away.
We've got ourselves back on track & I've a job that offers a pension scheme (Company is called Nest, if that makes a difference?)
Simple question really, is there any point in me using this scheme? The amount is only around £20 a week, so if I kept doing that, I'd have paid in around £10,000 when I hit retirement (roughly)

Thanks for taking time to read this,
Michael

JoeCrystal

Yes, absolutely. Especially your employer is paying onto it as well the tax relief on top of your own contribution.

Albermarle

If at all possible put a lot more in than £20 a week .

clive0510

I'm am also  with nest pensions in my work pension. my employer set it up. you may as well have it because its money for nothing. and tax free of course.

Thrugelmir

Most certainly yes. Your company is offering you free money by contributing as well. 

Grabs39

Put more in if you can, but you’ll get tax benefits whatever you put in and your employer has to put money in too.  Best to maximise anything your employer offers; otherwise you’re just throwing away your wages.

trickydicky14

JoeCrystal said:

Yes, absolutely. Especially your employer is paying onto it as well the tax relief on top of your own contribution.

Can I ask a question regarding Nest?

My partner is about to be enrolled into Nest and she too is 58 so needs to pull all the stops out.

She is happy to contribute a large part of her salary as she has other money she can live off.

How does she contribute to the pension, does she have to inform her boss how much to take from her wages or can she go online to her account and make a payment that way?

And can she make additional lump sum payments.

I understand she can contribute up to her annual wages, so would her maximum be 100% of her wages minus government top up, minus bosses 3% contribution?

I know employer can put more in but I can’t see that happening in this case.

Thanks for any advice and hope it may help others involved in Nest.

xylophone

https://www.nestpensions.org.uk/schemeweb/memberhelpcentre/contributions/make-additional-contributions.html

https://www.nestpensions.org.uk/schemeweb/memberhelpcentre/contributions/claim-tax-relief.html

If your wife earns (say) £20,000 a year and contributes to a "relief at source" pension scheme (like NEST), she can  pay to NEST ( through  her monthly employment contribs/ /one off etc) a maximum of  £16,000 - NEST will then claim tax relief of up to £4000 and add it to her pot.

Matt8888

That question takes me back many, many years, when I had done no revision, and it was two days before an A level exam. I said to a friend, "I don't suppose there is any point in doing any revision now." He was incredulous and pointed out that any revision at this stage could surely only help. Save everything you can, is my advice, and pension schemes add money to your savings for nothing.

trickydicky14

xylophone, thank you for that, would I be correct in thinking her employers contribution would have no bearing on how much she can contribute.

Albermarle

How does she contribute to the pension, does she have to inform her boss how much to take from her wages or can she go online to her account and make a payment that way?

For the regular contributions from her salary , she needs to inform her employer.

If she wants to make ad hoc lump sum payments then she can do that herself online. Depending on how her employer takes the regular contributions , it can be advantageous to increase these rather than ad hoc payments if it is by a salary sacrifice arrangement .

I understand she can contribute up to her annual wages, so would her maximum be 100% of her wages minus government top up, minus bosses 3% contribution?

She personally can make gross contributions up to her salary level . This means if she earns £20K , she can contribute £16K and then Nest will add £4K basic rate tax relief. ( again it is is a salary sacrifice arrangement it can be different )

Also separately there is a maximum of £40K pa you can add to a pension and that includes any tax relief and employer contributions .