Pension advice for over 50s

borderline

Hello,

for one reason or another, I don't have a private pension , I will have to rely on the state pension when I retire, that would be my only income.
To make matters worst, I don't own a house, I've been renting all my life and never had a job that paid well enough to save for a home.
Now I'm earning bit more but is it too late to start a pension plan? I opted out from the work pension plan, maybe I was foolish but paying rent and bills on my own I didn't want to take home less .

Now I worry with only the state pension won't even cover my rent 
What to do? I'm 56

p00hsticks

If you are on a low income then you may well qualify for housing benefit and /or council tax reduction. 
Have you got a State Pension Forecast ?
Check your State Pension forecast - GOV.UK

If you are on track for the full Pension amount ,then it would certainly be worth opting back into the work pension if you can afford it - you are turning down free money from your employer for not doing so. 

If you are NOT on track for the full State Pension amount , then the situation is a bit more nuanced, as if you do not get the full amount and have no other pension income you might well qualify for Pension Credit, which under the current rules would immediately passport you to a number of other benefits (Cold Weather Payment, TV Licence, Council Tax reduction etc). In that case putting money into a private / employer pension may be counter productive - although you'd be  taking a gamble on what benefits might be available 15 years down the line.....

DRS1

Maybe tot up what you spend in a year (exclude anything like commuting which you won't do when you stop work).  Then check your state pension forecast and see how the two figures compare.

You may also want to read up on pension credit and what other benefits that gives you - help with the rent perhaps?

The state pension starts when you are 67 so you have 11 years to go so it is not too late to start a pension but do check up on pension credit first.

Marcon

borderline said:

Hello,

for one reason or another, I don't have a private pension , I will have to rely on the state pension when I retire, that would be my only income.
To make matters worst, I don't own a house, I've been renting all my life and never had a job that paid well enough to save for a home.
Now I'm earning bit more but is it too late to start a pension plan? I opted out from the work pension plan, maybe I was foolish but paying rent and bills on my own I didn't want to take home less .

Now I worry with only the state pension won't even cover my rent 
What to do? I'm 56

Although the references to pension credit are apposite (always assuming it's still around in years to come), your very substantial inheritance a month or two back https://forums.moneysavingexpert.com/discussion/6623104/receiving-inheritance-money-in-euros#latest should surely have put you in a good position to start saving into a pension?

You'll be limited by your earnings in the tax year in terms of how much you can contribute to a pension and get tax relief, assuming you really don't have any other private pension provision (however tiny!) from years gone by?

xylophone

What does your state pension forecast show?

https://www.gov.uk/check-state-pension

borderline

xylophone said:

What does your state pension forecast show?

https://www.gov.uk/check-state-pension

full, at £230 a week in 2036

borderline

p00hsticks said:

If you are on a low income then you may well qualify for housing benefit and /or council tax reduction. 
Have you got a State Pension Forecast ?
Check your State Pension forecast - GOV.UK

If you are on track for the full Pension amount ,then it would certainly be worth opting back into the work pension if you can afford it - you are turning down free money from your employer for not doing so. 

I'm on track for full pension.. but if I opted back into the work pension, is not too late? I also worry  my job is not 100% secure and if I start with a pension now at work and then I'm not working there anymore in 1 or 2 years time , is it not a waste ?
If I can, I'm planing to work beyond my retirement age. 

borderline

Marcon said:

borderline said:

Hello,

for one reason or another, I don't have a private pension , I will have to rely on the state pension when I retire, that would be my only income.
To make matters worst, I don't own a house, I've been renting all my life and never had a job that paid well enough to save for a home.
Now I'm earning bit more but is it too late to start a pension plan? I opted out from the work pension plan, maybe I was foolish but paying rent and bills on my own I didn't want to take home less .

Now I worry with only the state pension won't even cover my rent 
What to do? I'm 56

Although the references to pension credit are apposite (always assuming it's still around in years to come), your very substantial inheritance a month or two back https://forums.moneysavingexpert.com/discussion/6623104/receiving-inheritance-money-in-euros#latest should surely have put you in a good position to start saving into a pension?

You'll be limited by your earnings in the tax year in terms of how much you can contribute to a pension and get tax relief, assuming you really don't have any other private pension provision (however tiny!) from years gone by?

Yes, I will definitely  save the money, top up the ISA or any other savings

DRS1

borderline said:

p00hsticks said:

If you are on a low income then you may well qualify for housing benefit and /or council tax reduction. 
Have you got a State Pension Forecast ?
Check your State Pension forecast - GOV.UK

If you are on track for the full Pension amount ,then it would certainly be worth opting back into the work pension if you can afford it - you are turning down free money from your employer for not doing so. 

I'm on track for full pension.. but if I opted back into the work pension, is not too late? I also worry  my job is not 100% secure and if I start with a pension now at work and then I'm not working there anymore in 1 or 2 years time , is it not a waste ?
If I can, I'm planing to work beyond my retirement age. 

People on here are fond of referring to the employer contributions to a pension as "free money" which you would be foolish to turn down.  Personally I think it is money you are working for so if you give it up you are selling yourself short.

OK there may be a scenario where the employer contributions get lost.  Or indeed you may be working for Robert Maxwell's 21st century reincarnation.  But that is not a reason not to join the scheme and start the contributions as soon as you can.

SVaz

It’s circumstances like yours that might make starting a pension a very bad idea.
The smallest amount could put you over the limit for rent paid, pension credit etc.   A tiny pension of £120 a month put my Sister in law over the cliff edge which meant she was liable for full rent etc.  and lost her £70 a Week in benefits until she became disabled enough for PiP. 

Quite honestly,  if you are always likely to rent and aren’t in a position to put away at least £100k then I wouldn’t bother with a pension. 

The people on this board are generally well off with no clue about the benefits system/ very low incomes. 

p00hsticks

SVaz said:

It’s circumstances like yours that might make starting a pension a very bad idea.
The smallest amount could put you over the limit for rent paid, pension credit etc.

The OP has already said that they are on track for a full State Pension, which means that they won't be eligible for Pension Credit