To think 53 is too late to start a pension plan?

[probablystuffed]

Has anyone started one this late? Is it worth it?

Go for it op. Even just for peace of mind knowing that you are doing something positive

You don't need an IFA.

Put as much money as you can every month into a good pension, and an ISA.

Have a look at Money Saving Expert for the best rates.

Don't psyche yourself out by calculating how much you will or won't get in ten years' time. Just make it the new normal to sock away a huge chunk of your income each month, and then put it out of your mind.

There’s a saying: the best time to start a pension was 20 years ago, the second best time is today.
Even if you don’t save much, you get tax relief - how is that not worth having?!
As you have your own company you should get specialist advice. It might be more beneficial to you to have your company pay your pension contributions that you going from the salary you draw. Take a look at the MSE website, pensions board.

Remember that for every £ you put in the govt will add £20. So if you pay 1200 per year, the govt will give you £240, more if you pay higher rate tax.

If you work another 15 years, you’ll have £22,000 saved. Do you have. House that you can sell & downsize once the dcs have left home?

Did your previous employer not give you any kind of a pension.

Sorry, for every £100, govt adds £20

Def put in as much as you can, have you an accountant ?

Will the government put money in when its a private pension?
No, I did work for the NHS but had no pension as I was on a work permit. Yes, I got bad advice.

No accountant.

Money in the mattress? Your husband sounds as thick as mince.

Keys to sorting finances

1. Maximise savings and minimise taxes. Many ways to do both of these. Jobs that match contributions, a second job, ISAs, Sipps, offshoring etc.
2. Secure the lowest fees posible (1% is way more than you think). Consider a Vanguard ISA
3. Diversify: Stocks. Bonds. Property.

Do you own your own house? How much do you think you'll need go live on a month?

@probablystuffed my £250 goes into a proper pension - was Scottish widows now Liverpool Victoria. The other money in the isa is ideally for retirement too but would be accessible before if I had a complete financial disaster / business went bankrupt.

What kind of work do you do? IPSE might be useful - www.ipse.co.uk

www.ipse.co.uk/services/pension.html

OP, definitely start. Chances are that you will still be working for two decades yet. You could save a decent pot in that time.

You should as the others have said salt away as much as you can afford to. The 'free money' (not really but you know) from the govt really is a decent incentive to do so.

No need to abuse her husband (thick as mince?). There are a few countries around the world where promised pensions never materialised, unfortunately.

Why is your DH anti pensions?? Does he understand them?

They’re so tax efficient

Oh God no, My Husband has no idea about money at all. Quite worried but Ia m trying to sort it now.

Thanks for your patience. I realise I should probably head over to a finance thread.

Please don't listen to the posters who say it's not worth it, or that you need financial advice.

Contribute as much as you can afford to give away (you won't be able to access the pension until you are at least 55).

The tax relief makes it worth it, even on small amounts.

The law changed back in 2015, Pensions aren't all about income now.

And yes, the government will offer tax relief on contributions to any UK registered pension scheme as long as you don't contribute more than you earn in a year or 40k, whichever is lower.

given that the government are giving you 20% towards it, it's not too late. It depends whether you can manage without the money you are saving.

Op look into sipp. Based on basic rate you put 2880 in and governments gives you 750!!

We have basic 40 grand allowances

It’s even better than that, @seniorschoolmum!

OP, the amount added is actually 25%, because then it’s 20% of the total.

So if you add £100, tax relief makes it £125.

All the big private pension providers have an arrangement to add the automatically - they sort it out directly with the government on your behalf. So as long as you’re a tax payer, you pay in £100 and next day your account shows £125. Fab!

If you pay £50 a month for the next 10 years, that’s £1500 for doing nothing.

Do some reading, there are some very accessible articles on line. But as I said, depending on how your company is set up, there may be other ways to do it that are beneficial. The MSE website is great.

The £2880 + £720 (not £750) is a reference to the maximum that a non tax payer can put into a pension annually, and still get tax relief despite not paying tax. It’s not restricted to a SIPP - it applies to any personal pension. So don’t be put off thinking that means you need to put in £2880 OP! Also, as you’re stating from a position of not knowing about tax relief, I wouldn’t advise a SIPP. That’s a Self Invested Personal Pension - for small amounts and an inexperienced investor, self investment isn’t the way to start!

There are other options to consider .Im of a similar age and took my pension early.However Scottish Provident has a great savings plan whereby you can invest a certain amount each month ,and move it up or down as needed ,.This has been helpful to me. Some companies will have Pension plans to open up to age 75!.Get some advice if you can.I have a feeling you may have to pay upfront to see a financial Advisor now though(No idea how much).Ps post To Oubliette Bravo ,Rosa Waiting is correct ,pensions and savings will be split equally on Divorce!

Have you looked at a pension calculator? Something like www.pensionbee.com/pension-calculator

Tbh at £100 a month it might be better in an ISA but I would definitely speak to someone about your pension goals

If you are self employed you are much better off paying your earnings directly into a pension, because you pay no tax on them, than taking them as income.

I do think an IFA/tax accountant will give you the best advice which should more than pay for itself.

It sounds like you're heading for disaster. Have you and your husband paid NI contributions? Do you own a house that you could downsize?