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  • FIRST POST
    • eggyf7
    • By eggyf7 11th Apr 18, 10:50 PM
    • 50Posts
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    eggyf7
    36 years old on Universal Credit, should i think about private pension
    • #1
    • 11th Apr 18, 10:50 PM
    36 years old on Universal Credit, should i think about private pension 11th Apr 18 at 10:50 PM
    Hi, Im currently on UC and PIP due to mental health issues but starting to wonder what will happen if i hit the 65+ years old time of life. I know i will get state pension at some point but my question is should i be trying to put away any of my income into some sort of a private pension scheme? Also im Bankrupt, dont know if that affects it!
Page 1
    • Brynsam
    • By Brynsam 11th Apr 18, 11:47 PM
    • 931 Posts
    • 605 Thanks
    Brynsam
    • #2
    • 11th Apr 18, 11:47 PM
    • #2
    • 11th Apr 18, 11:47 PM
    'Should' and 'able to' aren't one and the same thing. Given all the issues you have, maybe now isn't a realistic time to try and put money into a pension if you are struggling in so many other directions/are currently a bankrupt.
    • AnotherJoe
    • By AnotherJoe 12th Apr 18, 8:38 AM
    • 9,402 Posts
    • 10,387 Thanks
    AnotherJoe
    • #3
    • 12th Apr 18, 8:38 AM
    • #3
    • 12th Apr 18, 8:38 AM
    Focus on getting your life on an even keel now first rather than worrying about 30 years time.
    • justme111
    • By justme111 12th Apr 18, 8:54 AM
    • 2,987 Posts
    • 2,879 Thanks
    justme111
    • #4
    • 12th Apr 18, 8:54 AM
    • #4
    • 12th Apr 18, 8:54 AM
    No
    ...............
    • Bravepants
    • By Bravepants 12th Apr 18, 9:40 AM
    • 402 Posts
    • 435 Thanks
    Bravepants
    • #5
    • 12th Apr 18, 9:40 AM
    • #5
    • 12th Apr 18, 9:40 AM
    Agree with everyone else, take the time to get yourself sorted in the here and now, and the future will take care of itself.
    • stoozie1
    • By stoozie1 12th Apr 18, 9:45 AM
    • 549 Posts
    • 485 Thanks
    stoozie1
    • #6
    • 12th Apr 18, 9:45 AM
    • #6
    • 12th Apr 18, 9:45 AM
    I don't feel we know enough to say really.

    It could help your mental health to have fewer concerns about money in later life (it helps me to feel I am squirreling something away). And if you are able to make savings from your current budget, great!

    But as others have said, if things are too tight, or it would lead to too much additional anxiety, then prioritising now may be wiser.
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- 560 April 2670
    • Malthusian
    • By Malthusian 12th Apr 18, 9:47 AM
    • 4,092 Posts
    • 6,408 Thanks
    Malthusian
    • #7
    • 12th Apr 18, 9:47 AM
    • #7
    • 12th Apr 18, 9:47 AM
    Universal Credit will be replaced by the State Pension when you reach State Pension Age. The Personal Independence Payment should continue (over 65s making a new claim have to claim Attendance Allowance rather than PIP, but if you are still on PIP when you reach 65, this will continue past 65).

    The State Pension is often more generous than Universal Credit. So in theory when you reach State Pension Age one element of your income should go up and the other will have stayed the same.

    I say in theory because in reality both your personal circumstances and the benefits system will almost certainly change beyond recognition by 30 years time.

    Nonetheless, if your current income is adequate there is no need to pay into a private pension, and if it isn't you don't have any spare income to put into one anyway.

    Focus on your current wellbeing and ensuring you have an adequate emergency fund (three to six months' expenditure in cash).
    • atush
    • By atush 12th Apr 18, 1:25 PM
    • 16,700 Posts
    • 10,404 Thanks
    atush
    • #8
    • 12th Apr 18, 1:25 PM
    • #8
    • 12th Apr 18, 1:25 PM
    Start by learning to save. Pay any debts. Get yourself well.
    • michaels
    • By michaels 12th Apr 18, 8:21 PM
    • 20,695 Posts
    • 95,787 Thanks
    michaels
    • #9
    • 12th Apr 18, 8:21 PM
    • #9
    • 12th Apr 18, 8:21 PM
    Pension contributions can be deducted from your income before any tax credit assessment is made so if you are on a 73% marginal withdrawal/tax rate they can be very cost effective.
    Cool heads and compromise
    • Dox
    • By Dox 12th Apr 18, 11:37 PM
    • 511 Posts
    • 304 Thanks
    Dox
    Pension contributions can be deducted from your income before any tax credit assessment is made so if you are on a 73% marginal withdrawal/tax rate they can be very cost effective.
    Originally posted by michaels
    Cost effective is not the same thing as affordable....
    • justme111
    • By justme111 13th Apr 18, 7:27 AM
    • 2,987 Posts
    • 2,879 Thanks
    justme111
    or beneficial. .
    as another poster pointed above , SP may well be more than the universal credit now - how does it benefit one to put money into pension in the op's circumstances if it was so ? Pensions are needed to account for a disparity in income between working and nonworking life. If disposable income during working life ends up being higher than disposable i come in retirement on SP would be. Arguably even for many working people if they earn averagr/lrss than average wages pension does not make sense because if they pay mortgage and have children as those two big exoenses would go in retirement living on SP would not mean any drop in income for them.
    • GibbsRule No3
    • By GibbsRule No3 13th Apr 18, 11:11 AM
    • 657 Posts
    • 382 Thanks
    GibbsRule No3
    If you are only 36 it won't be SP at 65, I am 64 now and don't reach SP until 65yrs 9mths.
    Paddle No 21
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