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    • Mick442504
    • By Mick442504 5th Feb 18, 1:46 PM
    • 18Posts
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    Mick442504
    Advice on applying for Personal Pension
    • #1
    • 5th Feb 18, 1:46 PM
    Advice on applying for Personal Pension 5th Feb 18 at 1:46 PM
    Hi all

    I have a question, i am looking at taking out a personal pension and am a bit confused with regards to tax relief and "non earners" - it says that even non earners and people not working can still contribute to a personal pension and recieve 20% tax relief (i think) my question is - i am not working and am on ESA and i was thinking of putting small amounts away each month, would i still be able to apply and contribute to a personal pension even though i am on state benefit? (ESA)

    Any advice is welcome.

    Josh
Page 1
    • dunstonh
    • By dunstonh 5th Feb 18, 1:56 PM
    • 92,964 Posts
    • 60,347 Thanks
    dunstonh
    • #2
    • 5th Feb 18, 1:56 PM
    • #2
    • 5th Feb 18, 1:56 PM
    would i still be able to apply and contribute to a personal pension even though i am on state benefit? (ESA)
    Yes you can.

    However, do remember that when you eventually start the pension income, that is classed as income for means tested purposes. So, you may get tax relief now, but if you are likely to be on benefits in retirement, it may cost you then.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • mjfp509
    • By mjfp509 5th Feb 18, 2:00 PM
    • 153 Posts
    • 50 Thanks
    mjfp509
    • #3
    • 5th Feb 18, 2:00 PM
    • #3
    • 5th Feb 18, 2:00 PM
    Hi all

    I have a question, i am looking at taking out a personal pension and am a bit confused with regards to tax relief and "non earners" - it says that even non earners and people not working can still contribute to a personal pension and recieve 20% tax relief (i think) my question is - i am not working and am on ESA and i was thinking of putting small amounts away each month, would i still be able to apply and contribute to a personal pension even though i am on state benefit? (ESA)

    Any advice is welcome.

    Josh
    Originally posted by Mick442504
    Yes, you can contribute 2880 a year if you don't work and tax relief gets added to make it 3600.

    Just take note, as has been said, that your benefits may be reduced when you claim that pension, as it is classed as relevant earnings, so you'll need to do some maths to see what is best financially for you.
    • xylophone
    • By xylophone 5th Feb 18, 2:13 PM
    • 25,555 Posts
    • 15,090 Thanks
    xylophone
    • #4
    • 5th Feb 18, 2:13 PM
    • #4
    • 5th Feb 18, 2:13 PM
    You can contribute up to 2880 per tax year.

    If the monthly amounts are modest, a simple stakeholder might suit.

    https://www.cavendishonline.co.uk/pensions/stakeholder-pensions/
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