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Original poster

New pension at 60

5 replies

Middlechild3 · 01/02/2026 08:44

Started a second mini career at 60 which I plan doing for circa 5 years. Thinking of maxing avc's as employer will match up to a certain percentage (amount tbc). Am I missing something though? would I be better putting the extra money into savings instead of avc? Its the short 5 year period that is making me doubt my plan.

OP posts:
Jaffalemons · 01/02/2026 09:11

Do it. Free money is never a waste. If you’re feeling super cautious you could leave in cash.

Nourishinghandcream · 01/02/2026 13:24

How much are you and your employer looking to put into the pension PA?
You say for 5yrs, does that mean you are looking to finish work at 65 (2yrs before SPA)?
Do you have any other pensions and if do, when can you take them?
What is the purpose of this new pension, to last you through retirement or just to tide you over until 67?

Presuming you finish work at 65 and aren't taking another pension, you can take 25% of your new pension tax free and for the next 2yrs, take up to your annual TFA without paying any tax whatsoever so having not paid tax & NI on the contributions, it makes a pension very attractive.

Just to add.
In later life I maxed my AVC's and it really worked for me.

Original poster
Middlechild3 · 01/02/2026 15:55

Nourishinghandcream · 01/02/2026 13:24

How much are you and your employer looking to put into the pension PA?
You say for 5yrs, does that mean you are looking to finish work at 65 (2yrs before SPA)?
Do you have any other pensions and if do, when can you take them?
What is the purpose of this new pension, to last you through retirement or just to tide you over until 67?

Presuming you finish work at 65 and aren't taking another pension, you can take 25% of your new pension tax free and for the next 2yrs, take up to your annual TFA without paying any tax whatsoever so having not paid tax & NI on the contributions, it makes a pension very attractive.

Just to add.
In later life I maxed my AVC's and it really worked for me.

Edited

Thankyou, I have another pension which will be my main one (not pooling as different type) I just want to maximize this employers good terms for a boost as getting my new role was somewhat unexpected! Will check the max percentage and what they will match tomorrow.

OP posts:
Hitchens · 01/02/2026 18:49

always pay in enough to maximise an employer match! you are literally leaving free money on the table otherwise. Also, if your plans went wrong for some reason you can legally access your pension now if you had to, so you dont really have the downside of locking at away like others younger than you will. Obviously if you do access your pension you are severely restricting what you can pay in the future

ThirdStorm · 01/02/2026 19:04

Definitely put in pension. See if they salary sacrifice as that’s the best way to contribute especially if they share their NI saving with you. The pension provider will likely put you in their default fund which will be low risk given your age. Mine starts to derisk my investment 7 years away from my proposed retirement age.

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