Help and advice needed re starting a pension at 56

[HP28282]

I dont know where to start if I am honest.

F56
Self-employed
Have £100 a month I want to put into a pension fund.
I get UC - can I declare this £100 against my earnings does anyone know, as in it is viewed as an expense?
Should I start a private pension?

Not sure what other questions to ask tbh, but advice would be very welcome.

You should start a private pension. If you pay tax at 20% you’ll get the £100 grossed up to £125 by the pension provider because the government treats it as payable out of pre-tax income. Go for a very low fee provider, not a SIPP. Look at money.co.uk Pensions Guides. I’m not sure how universal credit affects anything.

If you don't earn enough to pay income tax, you can still pay in up to £2,880 net per tax-year into a pension and it will be grossed up by 25% by HMRC. So, you'll be instantly adding 25% to what you've saved.
Starting from scratch in your late 50s of course means you don't have much time for your funds to build up, but nonetheless if you consistently pay in £100 a month for the next 12 to 15 years, it will grow.

@Cantabulous Thank you, I don't earn enough to pay tax unfortunately

@YessandNno That is what I was thinking - is that a Gov pension or a private one? This is what I am a bit confused about

Is it usual to pay a company an annual fee of about 1% to manage it? Aegon has been recommended and they charge .82%

Yes, there will always be fees payable, which can vary significantly depending on which company you choose to hold the pension with and the type of pension you have.
You might find this article from Money-saving Expert a useful place to start.

Do you expect to be on UC or low paid until you retire?
in which case, there is an argument that a low pension fund amount that produces an income of say £20 a month actually is t worth it as it stops access to benefits. If you want to PM me, that’s fine

Oh that is interesting @Neededa , I hadnt thought of that, thank you. It could just tip me over the edge of getting help which would be galling.

Yes I will always be on a low income due to my health issues but am determined to keep working as long as possible so wanted to look at the best way to maximise my future income.

Thank you @YessandNno that article and its links are really helpful

Might be worth checking on .gov that you have paid all your national insurance contributions towards state pension. You can top them up.

Don't pay 0.8%! You can find cheaper and those costs really add up.

Look at aj bell / Dodl and interactive investor. Have a read of the money to the masses website with how to start and good providers to use. But CHECK the fees.

Would a different option be to save as much as you can in a Cash ISA up to the amount you are allowed to before it affects benefits, and that money will be really useful when you retire

@redfishcat thankyou for that, I will look into it!