Best way forward.

naunton

I have very little in any private pension fund and have made no personal contributions for more than 14 years when I left the teaching industry. That pension fund is small but index linked. The forecast as of this moment is about £1300 per annum plus a small lump sum on retirement.
My present employers have paid into a fund over the past 14 years but I have made no personal contributions. That fund would buy £1200 per annum but is not index linked.
I now find however that I could save/invest about £500 per month.
What is the most beneficial way for me.....age 52 and female.

Sorry, seems not enough info supplied:

I am a basic rate tax payer and will be the same on retirement.
I am single, own my own house and live with my partner who is retired and financially secure both in terms of pension and investments. If we were to marry (likely) I would receive half of his current index linked pension (on death) but would still be in the basic rate tax bracket.
I am wondering what to do with my own disposable income in terms of security at retirement age.

Any advice welcome

dunstonh

I now find however that I could save/invest about £500 per month.
What is the most beneficial way for me.....age 52 and female.

Depends on your circumstances, tax position (Both now and in retirement), marital/partner status, risk profile and future intentions.

Typically you would be looking at pensions, ISAs and unit trusts. Possibly a combination. Cannot be specific though as a) it isnt allowed and b) we dont know enough about you.

EdInvestor

First you need to check how much state pension you are likely to get. If you have a full work/NI record and average pay or more since 1978 you may find your state pension is double the basic when your SERPS/S2P is added on.

https://www.thepensionservice.gov.uk

By the time you retire, the tax free age allowance will be about 10k p.a.

Thus you should aim for a max of 10k of pension income ( state pension plus the 2 others.) Then you will get it tax free.

Any savings to provide extra income should be in your ISA, where you can save up to 7k a year (3k cash+ 4k investments or 7k investments) .The income from the ISA will be paid tax free.The investment options in the ISA and the pension are the same.