If you are over 50 and re-joining the workforce it’s important to remember your pension.
It’s estimated that the number of people aged 50 to 64 who are economically inactive sits at 3.6 million, which is 300,000 higher than pre-pandemic¹. There is no doubt that the UK’s economic growth will, in part, be reliant on getting the over-50s back into work.
If you retired early but are now having second thoughts and considering re-joining the workforce, here are a few essential pension planning tips:
- Find out if your new employer has a waiting period before auto-enrolling you into its workplace pension scheme. You could choose to opt into the scheme earlier to benefit from additional contributions
- Check how much you can save in your pension. As announced in the Budget, tax relief on pensions has changed. If you have any questions about your pension planning and how much you can contribute, please get in touch
- Check whether your employer will match any additional contributions you make over your minimum 4% level
- Your employer may offer you the option to exchange some of your salary in return for a pension contribution, which the employer then pays into your pension scheme along with their pension contribution. This can prove to be extremely tax-efficient
- Decide how you want your contributions to be invested and select a realistic retirement date
- If you’re self-employed, set up a personal pension
- Don’t forget to review your other pension pots and investments when pension planning to take account of your changed circumstances and ensure you have sufficient to be able to retire comfortably when the time comes.
Talk to us
If you would like help with your pension planning then please get in touch with Independent Financial Advisors (IFA).
We also offer pension expert advice on Early Retirement and Retirement Planning across East Sussex, including in Eastbourne, Lewes, Seaford, Bexhill, Hastings, Newhaven, Crowborough, Uckfield, Brighton, Hove and Tunbridge Wells and further afield.
Find out what our clients have to say about our advice by reading our VoucherFor reviews.
You can read more about pension planning and financial advice in our blogs or learn more about us.
¹Centre for Ageing Better, 2023
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.