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Is there another option other than a pension for someone over 50?
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If anyone is only going to rely on the State Pension in retirement. Is there any option other than taking out a private pension? What is the best thing to do if you are over 50 and without a private pension.
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If you are not contracted out of the State pension system (because you either have a personal pension or your employer provides you with an employer's pension scheme) you are AUTOMATICALLY contracted into the State scheme. It has been called various things over the years - Graduated pension, SERPS and now the State Second Pension.
This provides additional pension (over and above the full State Basic Pension of about £95 that EVERYONE gets who has earned enough to get adequate qualifying years). The Pension Service people (who also track your contribution record towards the Basic State Pension) will be able to provide you with a pension estimate for this element.
If you are not contracted out of the State pension system (because you either have a personal pension or your employer provides you with an employer's pension scheme) you are AUTOMATICALLY contracted into the State scheme. It has been called various things over the years - Graduated pension, SERPS and now the State Second Pension.
This provides additional pension (over and above the full State Basic Pension of about £95 that EVERYONE gets who has earned enough to get adequate qualifying years). The Pension Service people (who also track your contribution record towards the Basic State Pension) will be able to provide you with a pension estimate for this element.
SERPS/S2P will probably only give you a small addition to your state pension,depending on your NI contributions.
If your income is less than £130p/w for a single person or £198 for a couple,you may be able to claim pension credit.
If you want to pay into a private pension,you will have to put in a hell of a lot to get anything like a decent income,so ISA's could well be your best bet. Although if your employer has a pension scheme and they also contribute,then you're giving away 'free money' by not taking it.
If your income is less than £130p/w for a single person or £198 for a couple,you may be able to claim pension credit.
If you want to pay into a private pension,you will have to put in a hell of a lot to get anything like a decent income,so ISA's could well be your best bet. Although if your employer has a pension scheme and they also contribute,then you're giving away 'free money' by not taking it.
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