Quick easy guide for someone over 50 please?

SavvyPureGood

Just returned to work after a long career break. I know nothing about pensions but the rules have all changed and think I need to learn esp as new employer seems to be offering a good deal. How do I start educating myself on this and decide if I want to stay in their scheme, join another or do something else entirely? Let me know what info you need to advise me too please? Thanks 

molerat

Employer doesn't have to pay into anything other than their own scheme so opting out of that could lose you their contribution.  It is a good idea to increase your contribution if the employer will increase theirs as well.

eskbanker

SavvyPureGood said:

Just returned to work after a long career break. I know nothing about pensions but the rules have all changed and think I need to learn esp as new employer seems to be offering a good deal. How do I start educating myself on this and decide if I want to stay in their scheme, join another or do something else entirely? Let me know what info you need to advise me too please? Thanks 

How much will they contribute, how much can you pay in, and how much control do you have over investment choice within the scheme?

dunstonh

I know nothing about pensions but the rules have all changed

Governements always tinker with the rules but there hasn't been much change recently.    Even the 2015 options only extended the availability of existing options and tweaked some things. 1988 was probably the last massive change with everything since then more like tinkering.

How do I start educating myself on this and decide if I want to stay in their scheme, join another or do something else entirely? 

Its fundamentally simple.  Opt in and you get free money.  Opt out and you don't get that free money.  No alternative beats free money.

Sarahspangles

SavvyPureGood said:

Just returned to work after a long career break. I know nothing about pensions but the rules have all changed and think I need to learn esp as new employer seems to be offering a good deal. How do I start educating myself on this and decide if I want to stay in their scheme, join another or do something else entirely? Let me know what info you need to advise me too please? Thanks 

If you’ve had a career break, and were caring, check you’ve got the relevant state pension credits and are on track for full state pension, all via the HMRC app. If you’ve had a significant gap and need to make up ground in addition to your workplace pension you could also have a personal pension. The earlier you start the better.

SavvyPureGood

Min 4% contribution to pension matched by employer can inc to 6% also matched. Not sure re extra payments and choice on investments? How would I check this? Am I allowed to ask them about this? Hargreaves Lansdown is who they use. Wasn’t caring was long term sick but this job works within my health limitations (wfh) I’ll check HMRC app. I am on Uc with LCWRA and pip higher both should give an indication how happy I’ve found something I can manage! 

Marcon

SavvyPureGood said:

Min 4% contribution to pension matched by employer can inc to 6% also matched. Not sure re extra payments and choice on investments? How would I check this? Am I allowed to ask them about this? Hargreaves Lansdown is who they use. Wasn’t caring was long term sick but this job works within my health limitations (wfh) I’ll check HMRC app. I am on Uc with LCWRA and pip higher both should give an indication how happy I’ve found something I can manage! 

So if you pay another 2% your employer pays another 2% - looks like a good deal! Tax relief on your contribution and you double your money instantly.

To find our more, you read the literature your employer provides (or follow the link to where scheme details are provided). You're allowed to ask them for details if they haven't provided this information.

Dazed_and_C0nfused

SavvyPureGood said:

Min 4% contribution to pension matched by employer can inc to 6% also matched. Not sure re extra payments and choice on investments? How would I check this? Am I allowed to ask them about this? Hargreaves Lansdown is who they use. Wasn’t caring was long term sick but this job works within my health limitations (wfh) I’ll check HMRC app. I am on Uc with LCWRA and pip higher both should give an indication how happy I’ve found something I can manage! 

Grab that free money while you can.

As part of getting up to speed make sure you find out the method of contributing your employer uses.

It will be one of,

Net pay (£100 from you is £100 into your pension but you have £100 less income to be taxed on)

Relief at source (£100 from you is £125 in the pension once basic rate tax relief is added.  But these contributions don't reduce your income for tax purposes)

Salary sacrifice (you are agreeing to a lower salary in return for extra employer contributions.  No tax relief is added to employer contributions so £100 sacrificed is £100 in your pension.  But  as you have given up some salary you don't have it to pay tax or NI on).