Nest pension - low income at age of 52

justwhat

Nest pension - low income at age of 52

i pay 5% inc tax relief they pay 3%

wage is over £12200

Already have plenty savings. All other pension are small pots.

Is there any benefit for an old codger like me?

rjmachin

Yes, your employer is adding £366 a year (3% of £12200) in addition to your 5%.

Nest also claim 20% of your payments from the government on your behalf.

Marcon

justwhat said:

Nest pension - low income at age of 52

i pay 5% inc tax relief they pay 3%

wage is over £12200

Already have plenty savings. All other pension are small pots.

Is there any benefit for an old codger like me?

You say you're on a low income and all other pensions are small pots, which suggests you don't have much in the way of actual retirement provision. Whether you need more pension provision depends on what you mean by 'Already have plenty of savings'. Enough to live on, for possibly 40+ years, if you lost your job tomorrow and couldn't get another one? If the answer to that is a resounding yes, you may not need the employer's 3%...or you might be overly optimistic!

NedS

In your position, I would be looking to feed some of your savings into a pension by way of making extra contributions and benefit from the extra tax relief. For every £80 you contribute, the government will add another £20 in tax relief, even though you are not paying any tax. Probably best to do this through a separate relief at source scheme such as a separate SIPP.

justwhat

I was semi retired but registered  as SE.  Decided to get a part time job for something to do.  However i do really like working for a large company again. Sometimes work more hours. 
I wanted a job due to boredom. 12.2k is the basic pay it will be higher at year end. The wage is not used for living expenses , my self employed business  is still running and we use that for our day to day living.

Currently have some very small pension pots, unsure of the value. There are 2 with about 5 years contribution in each. (Maybe 300 pound per year each)

Savings - Own a couple of properties and have savings in bank(s). No mortgage. However i do intend to purchase a property for investment. 

NedS

I think you really need to consider your use of pensions - they are an extremely tax efficient way of saving for your retirement, and at the moment you are massively under-using them, and are missing out on free money from the government as a result. It's not too late, and with relievable earnings that you don't require for living costs and savings to utilise, you could contribute your full gross salary (over £12,200) into a pension each year and receive a 20% uplift from the government. If you contributed £12,000 (£1,000/month) the government would add another £3000 in tax relief. If you view it as nothing more than a savings account until you can access it at 55 (or maybe 57), then it's a healthy return for zero risk.

justwhat

NedS said:

I think you really need to consider your use of pensions - they are an extremely tax efficient way of saving for your retirement, and at the moment you are massively under-using them, and are missing out on free money from the government as a result. It's not too late, and with relievable earnings that you don't require for living costs and savings to utilise, you could contribute your full gross salary (over £12,200) into a pension each year and receive a 20% uplift from the government. If you contributed £12,000 (£1,000/month) the government would add another £3000 in tax relief. If you view it as nothing more than a savings account until you can access it at 55 (or maybe 57), then it's a healthy return for zero risk.

Thanks .....