Mrs GC's Pension

Grumpy_chap

Thank you @Albermarle

Mrs GC is currently not working and looking for her next challenge, so whether there is an SS scheme or not is yet to be known.  Hopefully, she'll have something shortly.  Either temp or perm.

Allowing for her irregular employment, especially if she gets a temp role, it seems as though the best thing would be to:
1. pay £2,880 into a pension now (increased to £3,600 by Rishi),
2. make the maximum she can as work-related contributions (employer and employee)
3. at the end of the tax year make another contribution for the most that is permitted.

If I have understood this correctly, the end of the tax year contribution would be
 - total earnings for the year
 - take 4/5ths value
 - deduct any employee contributions from salary
 - deduct £2,880
 - the remaining sum is then what can be paid as pension contribution and gets 25% added by Rishi

Hopefully I have got that correct.

Obviously, if the employer operates SS, then the earnings will be lower and employee contributions will be zero.

Brie

Is she likely to be working again for the NHS?  If so it may be their CARE scheme.  

If she works for someone else and they have a decent DC scheme she should contribute the max particularly if it increases the employer's contribution.  And if it's a temp role she should look at transferring the benefit into one of her other DC schemes or into her subsequent employer's scheme.  Doing may well allow her to retain the maximum benefits from the employer.

Grumpy_chap

She is not particularly likely to work for the NHS again, though doesn't rule it out.  She is not medically qualified and her role was admin.

Obviously, she will max out any employer scheme.  It's what she does with anything beyond whatever limits that imposes.

Clive_Woody

Sorry if you mentioned it and I missed it, but have you both checked your potential state pension to see if it might be prudent to purchase any additional years to ensure that you are entitled to maximum payment?

Grumpy_chap

Clive_Woody said:

Sorry if you mentioned it and I missed it, but have you both checked your potential state pension to see if it might be prudent to purchase any additional years to ensure that you are entitled to maximum payment?

No, we have not.  State pension seems to be more mysterious that Peter Andre's girl.

Clive_Woody

Grumpy_chap said:

Clive_Woody said:

Sorry if you mentioned it and I missed it, but have you both checked your potential state pension to see if it might be prudent to purchase any additional years to ensure that you are entitled to maximum payment?

No, we have not.  State pension seems to be more mysterious that Peter Andre's girl.

You can check online using the government portal, you need to register but it's quick and straightforward and definitely worth checking.....I'll forgive the Peter Andre reference 😉

Albermarle

Grumpy_chap said:

Thank you @Albermarle

Mrs GC is currently not working and looking for her next challenge, so whether there is an SS scheme or not is yet to be known.  Hopefully, she'll have something shortly.  Either temp or perm.

Allowing for her irregular employment, especially if she gets a temp role, it seems as though the best thing would be to:
1. pay £2,880 into a pension now (increased to £3,600 by Rishi),
2. make the maximum she can as work-related contributions (employer and employee)
3. at the end of the tax year make another contribution for the most that is permitted.

If I have understood this correctly, the end of the tax year contribution would be
 - total earnings for the year
 - take 4/5ths value
 - deduct any employee contributions from salary
 - deduct £2,880
 - the remaining sum is then what can be paid as pension contribution and gets 25% added by Rishi

Hopefully I have got that correct.

Obviously, if the employer operates SS, then the earnings will be lower and employee contributions will be zero.

Yes looks OK . As others said best to check both your state pension forecasts. If one of them needs topping up due to missing years, then it is an absolute no brainer to do so.

Grumpy_chap

Albermarle said:

Yes looks OK . As others said best to check both your state pension forecasts. If one of them needs topping up due to missing years, then it is an absolute no brainer to do so.

Thank you.

Is this the correct place to get the correct number for state pension?
https://www.gov.uk/check-national-insurance-record

It is via Government Gateway ID, which I don't have.  Is that genuine, or a spoof?

Albermarle

No here 
Check your State Pension forecast - GOV.UK (www.gov.uk)

Dazed_and_C0nfused

Grumpy_chap said:

Clive_Woody said:

Sorry if you mentioned it and I missed it, but have you both checked your potential state pension to see if it might be prudent to purchase any additional years to ensure that you are entitled to maximum payment?

No, we have not.  State pension seems to be more mysterious that Peter Andre's girl.

If necessary making voluntary contributions to get to the standard new State Pension will nearly always beat any personal pension/SIPP hands down.

It's important you read the forecast in full, not just the headline figure.