Pension/savings/benefits

[Deleted User]

I am in my mid forties and I have started to seriously panic about my future/retirement.
I count my blessings that I am mortgage free on my modest small home. But part from that, I have no savings or pension in place. I want to take action now before it’s too late but I have no idea what to do or where to start. 

Work pension has never worked for me as I have never stayed in one place too long and I have always cashed it in when I leave a job. 

So I was thinking of some sort of savings and I want to try and save £100 a month. I am on a low wage and receiving universal credit but I worried that if I start saving now, I will lose universal credit when I eventually hit £6k in savings which will make me worse off. 

I know I am probably best to speak to a financial advisor but any suggestions?

strawb_shortcake

If you haven't already I'd look at the Help to save account, you can put away up to £50 a month away and the bonuses will beat any regular savings account. If you have a partner they can have an account too. 

Opening a SIPP would be better longer term, and I assume protected from the £6k savings of UC? The bonuses and eventual return of your savings from the HTS account could then be fed into the SIPP

Also, build up an emergency fund so you don't have to dip into any future savings 

Dazed_and_C0nfused

Never speak to a financial advisor.  

If you go down that route it should be an independent financial advisor.  But it is unlikely to be worthwhile for the sums you are talking about.

And never ever get a refund of contributions.  That has meant you have lost all of your employers contributions and have had to pay (non refundable) tax on the refund of your premiums.

First thing you should do is make sure you are contributing the amount to your current employers scheme that gets their largest contribution.

Then instead of saving why not consider contributing to your own pension, that way you will potentially get round the £6,000 issue and the contributions may actually increase your Universal Credit (try posting on the Benefits board to check this with details of your circumstances) and you get tax relief even if you don't pay tax. 

For example if you pay in £100 to a relief at source pension (personal pension or SIPP) that gets £25 added giving you a pension fund of £125.

Dazed_and_C0nfused

Help to save is a great shout 

[Deleted User]

Dazed_and_C0nfused said:

Never speak to a financial advisor.  

If you go down that route it should be an independent financial advisor.  But it is unlikely to be worthwhile for the sums you are talking about.

Yes, I would be quite embarrassed to speak to an independent financial advisor as the savings amount would be significant for me but peanuts for them to waste their time on 

[Deleted User]

Dazed_and_C0nfused said:

Never speak to a financial advisor.  

And never ever get a refund of contributions.  That has meant you have lost all of your employers contributions and have had to pay (non refundable) tax on the refund of your premiums.

I didn’t think it was worth having a few years here and there for each job. I probably would have  forgotten them all when I retire 

[Deleted User]

Ok will start looking into/research help to save and Sipp

MX5huggy

Deleted_User said:

Dazed_and_C0nfused said:

Never speak to a financial advisor.  

And never ever get a refund of contributions.  That has meant you have lost all of your employers contributions and have had to pay (non refundable) tax on the refund of your premiums.

I didn’t think it was worth having a few years here and there for each job. I probably would have  forgotten them all when I retire 

As you leave one job and start another every time either move to pension to the one offered by the new job or set up a cheap SIPP so you move each job as it finishes to that. 

[Deleted User]

MX5huggy said:

Deleted_User said:

Dazed_and_C0nfused said:

Never speak to a financial advisor.  

And never ever get a refund of contributions.  That has meant you have lost all of your employers contributions and have had to pay (non refundable) tax on the refund of your premiums.

I didn’t think it was worth having a few years here and there for each job. I probably would have  forgotten them all when I retire 

As you leave one job and start another every time either move to pension to the one offered by the new job or set up a cheap SIPP so you move each job as it finishes to that. 

Ohhhhh that makes much more sense. 

MEM62

Deleted_User said:

Work pension has never worked for me as I have never stayed in one place too long and I have always cashed it in when I leave a job. 

Your works pensions would have worked for you.  The only reason they didn't is because you kept cashing them in.

In terms of retirement provision, there is nothing that beats a pension.  For a start, both the government and your employer contribute - that's free money!  Speak to your employer now and join your works pension scheme.  Your future self will be very grateful that you did.  

tebbins

Given your low income and UC situation I would say it's also worth checking your National Insurance record. Given your age you are probably in the new state pension, you need 35 qualifying years to get the full new state pension and it is very much worth checking to see if you're on track for that by 67/68.