Pension on benefits

Pip_cas1

Im currently on UC due to illness, im 59. I don't have a private pension and neither does my partner. If we were able to pay regularly into some type of pension, could we?  Obviously it wouldn't be a lot. Advice please......tia

Dazed_and_C0nfused

Pip_cas1 said:

Im currently on UC due to illness, im 59. I don't have a private pension and neither does my partner. If we were able to pay regularly into some type of pension, could we?  Obviously it wouldn't be a lot. Advice please......tia

Yes, you could both pay £2,880 each tax year.  Which would have £720 in basic rate tax relief added, irrespective of whether you had paid any tax or not.

The best starting point is probably to check your Personal Tax Account to see what your State Pension entitlement is as that is likely to form the majority of your pension income.

itsthelittlethings

I think you could possibly pay in more than that, you just wouldn’t get tax relief over that amount, or is the amount you can pay in capped?

QrizB

itsthelittlethings said:

I think you could possibly pay in more than that, you just wouldn’t get tax relief over that amount, or is the amount you can pay in capped?

Generally people contribute to pensions because it's more tax-efficient than saving elsewhere.

Making contributions that don't receive tax relief, and then paying 20% tax on 75% of it when you withdraw it, isn't usually a good idea.

Dazed_and_C0nfused

itsthelittlethings said:

I think you could possibly pay in more than that, you just wouldn’t get tax relief over that amount, or is the amount you can pay in capped?

True.  But I really don't think the op was likely to be thinking about that "opportunity"

If we were able to pay regularly into some type of pension, could we? Obviously it wouldn't be a lot.

Pip_cas1

Dazed_and_C0nfused said:

Pip_cas1 said:

Im currently on UC due to illness, im 59. I don't have a private pension and neither does my partner. If we were able to pay regularly into some type of pension, could we?  Obviously it wouldn't be a lot. Advice please......tia

Yes, you could both pay £2,880 each tax year.  Which would have £720 in basic rate tax relief added, irrespective of whether you had paid any tax or not.

The best starting point is probably to check your Personal Tax Account to see what your State Pension entitlement is as that is likely to form the majority of your pension income.

Its very unlikely we could afford that amount from our benefits  😢

molerat

Once you have checked, if your state pension/s will be below pension credit level it would be counter productive doing anything that would increase your income level.

Youngmoneyvibe

Small pension contributions are possible even on UC. Look into a SIPP with low minimums like £50/month. Check with your work coach to ensure no UC impact.