Building up pension at 50+

[jennylamb1]

I'm looking at applying for a job at a university at age 53 in 3 years time. There are positions that really appeal to me and having done a 6 year PhD I would like to put some more money into a pension so that retirement is more comfortable. Looking for a salary of about 35-30k, I would pay 6% pension contribution and the university pays 10%.
My question is, if I spent the last 10 years of my career doing this, would I get some sort of decent pension pot?

Do you have any pension currently? The main thing that helps a pension grow is time and you wouldn't have that for your contributions. So to compensate you'd have to pay in more.
you can find pension calculators online which will give you an estimated income from your presumed pot - in fact your pension provider should give you an illustration of this as well.
im afraid a 16% contribution from 53 isn't going to build up much. It's better than not having anything of course, but the older you are when you start, the more you need to pay in.
Are you working currently? Can you start now?

Well, without know anything about your income, savings, existing pensions etc it's impossible.

But just having 14% over 10 years of £40k will only give around 2500 a year perhaps?

however, best to do it properly.

Try this calculator :)

www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/use-our-pension-calculator

I'm younger than you but in USS pension at a similar grade/pay, I built up about about £500 a year pension. So I have worked for six years so far and I am due about £3000 projected pension a year, but you can play around with lump sum to change that amount.

However you might not get USS, might be something else around that salary and also depends on university.

If it's a university it will be (at least partly) a defined benefit scheme - USS or TPA. USS will give you 1/75 of your salary multiplied by years worked.

Thanks all. Yes, I have a couple of pension schemes already, one projects an annuity of about £9k a year, one is a £9k lump sum and I have a very small one from working as a teaching assistant. I have been a carer so have had my state pension credited so should get a full state pension once retired.
I'm aware that whilst caring I've been on a low salary and I have had little part time jobs and also will have spent 8 years doing a part time MA and now PhD, which won't have contributed at all to a pension obviously.
Having prioritised my son as a carer for a long time I've now just got an eye on being comfortable in retirement.

If they pay 10% which is a good amount
I would suggest that you pay 10% also

Do you have a specific university in mind? Some universities still offer defined benefit schemes (ie your pension is based on a % of your salary for every year you paid in). However, as you are quoting an employer contribution of 10% I suspect it might not be a defined benefit scheme as the employer's contribution for those is much higher than 10%.

If it's a defined benefit scheme then isn't it based on average salary and years worked not what's actually paid in by the OP? She'll have to pay in the 6%. What would she get for paying in more?

Ignore my post above I've got no idea what I'm talking about!!!

If you are able to, pay in as much as possible in additional contributions, on which you get tax relief as well.

If you're in the UK it's either USS or TPS. Both are outstanding schemes with all sorts of benefits including life insurance, lump sum etc. No, you won't build a massive pension pot over that time period and on that salary but you'll build up a lot more than if you didn't pay in. It's tax free and if you refuse it you simply lose the employer contribution.

USS has an easy pension calculator on its website. TPS probably does too. I think this is a no brainer, join the scheme.

OP, if you do not have lavish tastes you will be ok with your £9k + whatever you manage to build up + state pension. And keep your £9k lump sum in a high interest account for emergencies.

Pay in as much as you can once you get your job, because the gvt increases all your contributions by 20% and then you also get the growth on that.

Just a question. If one has very low pension prediction (am beginning to build my pension from zero at the old age of 47), can they just pay lumpsums into the pension fund? Would this have negative tax or other implications? I am hoping to put in £10k a year for at least 3 years starting this year, then see how my earnings go after that. I am self employed so income is up and down

Yes, you can just deposit sums into your fund, and you get tax relief on it- especially if you are a higher tax payer. Plus (atm) when you retire you can take 25% of that sum out taxfree. You can't access it til age 57, though.

@aramox1 Thanks for the response. Last year my accountant said I could not do this which I thought was strange. Will start this now. I need to build up and build up fast and strategically. I dont think I will ever be eligible to state pension as I only moved to the UK 6 years ago post 40

It depends on your earnings though