I am trying to work out how to best plan for my future. I am 50, single parent to 2 children who get disability benefits. I work part time and have a very small work pension I just started a few years ago. I rent a council house.
Currently I get a top up from UC due to the my kids getting DLA but after years of wrangling I am finally getting Child Maintenance including back pay and it’s a fairly healthy amount each month.
My kids will be adults in 7 years and I won’t be entitled to UC anymore and the CM will stop, leaving me in a very different financial situation. I can’t pay anymore into my work pension than I already do as it would take me under NMW for my hours.
Should I open a SIPP and pay as much as possible over the next 7-10 years and use this to top up my income once I am not longer entitled to UC. It is unlikely I will be able to increase my hours due to my kids needs. Even when they are adults they will not be independent.
Of are there better options for me?