55 in 2 weeks - need to know my best option

xylophone

Are you currently a member of a workplace pension scheme?

tritons0

No , i have been self employed for many years

xylophone

No , i have been self employed for many years

This would not have prevented your contributing to a pension (and does not prevent your contributing now).

Did you see my post here

https://forums.moneysavingexpert.com/discussion/comment/78567354/#Comment_78567354

and comments from other posters about the fact that making pension contributions could increase the amount you could claim in WTC?

https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account

A Target Retirement Fund might suit?

Perhaps you might consider transferring those two small DC pensions to a modern scheme and continuing to contribute?

You might check on your state pension forecast and your NHS entitlement and NHS Scheme normal retirement age (60?).

michaels

Suppose you are paying basic rate tax and can salary sacrifice then each £1 you put into a pension will only reduce your take home pay after tax credits by 27p and you will get that whole £1 back as you won't have to pay tax on it.

Given this rate of return it would be worth borrowing to take advantage.

tritons0

i will look further into trying to put something in but im on a debt management scheme so cant borrow anything.  always got by with scraping through and never thought about my pension, have always been a 'live for today' person - foolish i know . thank you for making me look further into this though 

Dale72

Have you obtained a CETV (transfer value) for your NHS pension. It might only seem pennies in terms of guaranteed income, but it might be a half decent lump sum that could help pay some of your debts.

tritons0

hiya - i shall contact the nhs pensions to see whats in that, thank you 

kuratowski

The NHS pension is not a pot of money (literally, even the government does not have the money, it's all paid for on the never-never).

You can't convert it to a pot of money either, because it falls under a rule* that prevents transfers of unfunded public sector pensions to defined contribution pensions.  (Apologies for the jargon.)

* Pension Schemes Act 2015, section 68, in case anybody cares.

xylophone

hiya - i shall contact the nhs pensions to see whats in that, thank you 

As poster above says, you are unable to transfer your NHS deferred pension (unfunded public sector scheme) to a scheme offering flexible benefits (DC scheme).

Dale72

That's interesting. Why is that rule in place if anyone knows. I've been told a few times that pension administrators are only too happy to get pension liabilities off their books.