How much pension income to break even

molerat

Silvertabby said:

dont_use_vistaprint said:

Interesting replies.

Point of this post was to understand the benefits or lack of for certain numbers of people who have been unable for various reasons to pay into  pensions & now feeling pressured that they should start often in their 40s and 50s and still on low wages with huge financial pressure. I happen to know if a few people like this and I’m sure there are many, many more.

The reality is clear - they will be putting away money that they could better use now , not getting full tax relief , often pitiful amounts matched from the employer, and seeing absolutely no benefit from it later, but no one is telling them that.

realistically, unless they can manage to get a pot of about 250K to 300K, which is going to be impossible, they would be better off saving nothing in a pension as it’s classed as income later, as it’s clear that once you are eligible for pension credit, there is a whole raft of other help available that is not technically means tested, Is simply paid to people in receipt of pension credit.

Better put that money into ISA savings ?

But these people, in their 40s and 50s now, will almost certainly receive the full single tier pension (nSP) and so won't qualify for pension credit or any of the other tasty means tested benefits being in receipt of PC opens the door to.

The vast majority retiring from April 2025 should be getting the full new pension, only those that have not been receiving NI credits for some period will not.

SouthCoastBoy

For those just over pension credit threshold, there will still be help with council tax etc, not all the benefits will cease