It's never too late to start paying into a pension pot. Here's how
If you’ve left pension saving until later than ideal, you’re not alone. One in four of 40 to 75-year-olds do not have a private pension,there are about 4.2 million self-employed people in the UK. Around 45 per cent of these are not saving into a pension, according toWhat should you do if you are in your 40s, 50s or 60s and haven’t saved much for your pension? Below we run through your options.The first step is to open a private pension.
This depends on your age, your current income and how much income you want in retirement. The general advice from money advisers is to pay in half your age when you first start contributing. So if you start aged 40, you should aim for at least 20 per cent. Bear in mind there are tax incentives for saving into a pension as the government gives you tax relief on contributions. So a £350 contribution will only effectively cost you £280 if you are a basic-rate taxpayer, and £210 if you are a higher-rate taxpayer. If you make contributions through your business, you will save on corporation tax. If you are employed, your employer will also be contributing, reducing the cost to you further.with his mother, Linda, in 2015.
Entrepreneur Penelope Silver, 48, from Greater Manchester, also recently opened a pension for the first time. Although she paid into a final salary pension while employed in her 20s, for years she didn’t give pensions another thought after she started her own business. If you are approaching state pension age and feel you will be short on NI contributions, perhaps because you took time out of work and did not claim benefits or you lived abroad for a while, you can make voluntary contributions for the past six years. The deadline is 5 April each year. You may be able to make top-ups dating back to 2006 if you are aged over 70.. Each year adds £302.64 a year to your state pension.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pandemic had real lasting impact on cognitive function in over-50s, study findsResearchers found cognitive function and working memory in older people declined more rapidly during the pandemic
Read more »
Pandemic had real lasting impact on cognitive function in over-50s, study findsResearchers found cognitive function and working memory in older people declined more rapidly during the pandemic
Read more »
Covid pandemic linked to rapid brain health decline in over 50s, new study findsRecent research found a link between the coronavirus pandemic and sustained cognitive decline, impacting those over the age of 50 more rapidly.
Read more »
Met Police hunt man after alleged homophobic attack in LondonOfficers want to track down Alex Ogden after a man in his 50s was assaulted in Islington.
Read more »
Police hunt 'dangerous' man after homophobic attack in IslingtonAlex Ogden, 28, is wanted in connection with a homophobic assault at an address in Islington that left a man in his 50s needing hospital treatment.
Read more »
16 Stats: Quinn Hughes’ hot start, Penguins’ slow start, Trevor Zegras’ quiet startDoes the Canucks' Hughes, ranked in Tier 3B, deserve an upgrade now?
Read more »