Pension or savings account

My husband is nearly 60, he has a small pension pot (I will only have state pension). We are currently able to save regular amount each month. Would this be best going into his pension or into a regular savings account?
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  • Emmia
    Emmia Posts: 2,925
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    Are either or both of you still working? And if you are does your employer offer a pension you could pay into, saving the tax?
  • A pension would be the most favourable option if your husband will get an employer contribution and/or he pays income tax at the higher rate
    Reed
  • JuzaMum
    JuzaMum Posts: 653
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    Emmia said:
    Are either or both of you still working? And if you are does your employer offer a pension you could pay into, saving the tax?
    I don't work as I'm a full time carer. He is still working
  • JuzaMum
    JuzaMum Posts: 653
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    A pension would be the most favourable option if your husband will get an employer contribution and/or he pays income tax at the higher rate
    He's a lower rate tax payer
  • You can put £2880 a year into a SIPP as a non earner and get £720 tax relief. If you're over 55 you can withdraw it whenever you want and you can leave it in cash, you don't have to invest it.
  • Albermarle
    Albermarle Posts: 20,995
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    JuzaMum said:
    Emmia said:
    Are either or both of you still working? And if you are does your employer offer a pension you could pay into, saving the tax?
    I don't work as I'm a full time carer. He is still working
    If he added more to his workplace pension would his employer add more ? Some will up to a point.
  • Hi JuzaMum,

    Have you both checked your State Pension forecasts?

    Best wishes.
  • Janie2008 said:
    You can put £2880 a year into a SIPP as a non earner and get £720 tax relief. If you're over 55 you can withdraw it whenever you want and you can leave it in cash, you don't have to invest it.
    This seems a great option for you as you could potentially get £720 free money each year for a few years and then gradually withdraw it all without pay much, if any, tax.
  • JuzaMum
    JuzaMum Posts: 653
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    Thank you everyone. It looks like putting into a pension is best, we will have to look into the best way to do this. We've checked our state pensions, I have a few years to get to the maximum but get credits due to receiving carer's allowance so should be there before retirement age. 
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