My DM will be getting her state pension as from March and needs to save it for 8-10 years, what is the best thing to do?

[Swifey]

She is still working full time, and has no private pension and only a very small amount of savings. She rents her house. After tax it will be about £320 per month, so wants it to be a nice best egg when she wants/needs to stop work. She has some inheritance from her father too, totally about £27000, and we are undecided what to do with this lump sum too!! Any thoughts gratefully received. ??

Premium bonds are probably a safe way of locking away the money for the medium term. The returns aren't brilliant but it's protected and guaranteed that she will get back her initial investment. Plus she will be entered in the monthly million pound draw. She can also sell them if she wants access to the money.

she's she have to start taking it? she can defer for at least a year I believe

For the lump sum. The NSI pensioner bonds are high for a guaranteed return low risk and seem to be recommended.

Max £10k for 3 year bond on 4% plus £10k 1 year bond on 2.8%

Only available until May though

hello S

Your mum can defer taking her pension & receive more www.gov.uk/deferring-state-pension/what-you-may-get

Best easy access account rates 20,000 Santander
Best tax free ISA savings 15,000 per year per person
Best 65 years old savings NS&i bonds & premium bonds
see here www,moneysavingexpert.com

If your mum is still working, she could start a private pension, some companies pay into a pension eg if you pay x% of your wages, the company adds the same, so worth investigating

I agree that she should think about deferring.

premium bonds are safe but may return nothing.

also safe and will return something; linked current accounts, moving the same money round to trigger interest.

5% TSB up to £2k
4% club lloyds up to £5k
3% Santander up to £20k

and that pensioner bond, 4% for 3 years and no faffing.

If your DM defers, her state pension will increase by 10.4% per year of deferral.
No other savings account will come close.
My MIL has just started taking hers after deferring for 5 years. Her monthly state pension amount is more than 60% bigger than it would have been if she had started it at the proper date.
Also have the option of taking a lump sum instead of the increase in pension.

Thank you all so much for your answers, I hadn't even realised that you could defer it!!