Benefits and paying into private pension

letitbe
letitbe Online Community Member Posts: 342 Empowering
in Benefits and income

hi everyone , I get LCWRA and pip and I’m thinking of opening a private pension and paying into it every month . Does anyone know how much you’re allowed to pay into a private pension when on benefits without getting into trouble ? Also does anyone have any good private pension scheme companies they know of that can be set up easily and aren’t too difficult ? I get overwhelmed with these kinds of things . Thanks 🙏

Comments

  • Biblioklept
    Biblioklept Online Community Member Posts: 116 Empowering

    I don't know if there's a limit but it's a good idea to do! ❤️

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,450 Championing

    Hi,

    The current allowance is £2880 per year for people like us before it starts causing issues for tax. That works out as £240 a month, though personally I would keep slightly below that just to make sure. (£200-£220 maybe)

    There is no set limit for benefits specifically. As long as it's coming out of your income each month, that should be fine.

    I'm not sure we're allowed to advertise companies on here but AJ Bell, Aviva and Hargreaves Lansdown are all companies I considered when looking it this.

  • letitbe
    letitbe Online Community Member Posts: 342 Empowering
    https://forum.scope.org.uk/discussion/comment/1023302#Comment_1023302

    thank you . I should’ve been doing it when I first got pip , but I’m def going to look into it . I just get overwhelmed with form filling etc so hope it’s an easy process . Do u set up a direct payment into it or can I do it manually every month ? Also what happens if there’s months where I don’t pay into it ?

    Thanks 🙏

  • letitbe
    letitbe Online Community Member Posts: 342 Empowering
    edited April 30

    🙏

  • letitbe
    letitbe Online Community Member Posts: 342 Empowering
    https://forum.scope.org.uk/discussion/comment/1023184#Comment_1023184

    thanks 🙏

  • letitbe
    letitbe Online Community Member Posts: 342 Empowering

    I’ve just read about SIPP - I’m not sure I’d be able to cope with me dealing with how to invest - I just want a basic private pension that I can pay into monthly . I’m confused about it ?

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,450 Championing
    https://forum.scope.org.uk/discussion/comment/1023350#Comment_1023350

    You can choose direct debit or manual payment, whichever you prefer.

    You can stop and start paying into them whenever you like. Nothing bad happens. The money will remain in there until you reach pension age. Just be aware that they will charge fees which are fairly small each month, but over decades are likely to reduce the pension amount if you stop paying for a long time.

    SIPPs offer you the option of making your own investment choices OR letting the system do it all for you. I haven't even looked at mine since I set it up a year ago. Really no hassle at all.

  • letitbe
    letitbe Online Community Member Posts: 342 Empowering
    https://forum.scope.org.uk/discussion/comment/1023381#Comment_1023381

    ok thanks , they only ones I can find are SIPP .

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,450 Championing
    edited May 1
    https://forum.scope.org.uk/discussion/comment/1023591#Comment_1023591

    They are all called SIPP, that's just an umbrella term, a bit like the word 'benefits' covers all different types.

    Try this link - Universal Retirement Fund - Retirement Age - Aviva

    This is the most basic SIPP that Aviva offer. You don't have to do anything yourself.

    (I'm not saying you must use this one, just an example of one that doesn't need any managing.)

    image.png
  • deelee
    deelee Scope Member Posts: 56 Contributor
    https://forum.scope.org.uk/discussion/comment/1023302#Comment_1023302

    Good morning 👋 I just came across this and found it quite interesting as I wondered about this in the past.

    Do you ( or anyone else reading this ) would know the answer to this - What if it is a couple - a full time carer looking after their partner who is disabled? Would it be possible for 2 pensions to be paid into ? I know many couples who would be in this situation. Would they be able to pay into 2 pensions - £200 each or £ 100 each? …

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,450 Championing
    https://forum.scope.org.uk/discussion/comment/1024063#Comment_1024063

    Hi,

    That figure is based on the tax allowance for non-earners, it's not a benefits specific thing.

    So you should each have the individual allowance of £2880 per year, or £240 per month. It would be worth double checking that with an advice centre or a pension provider. If either person has earnings separate from benefits then that could increase their yearly allowance.

    For clarity, you can pay more than that into a pension. It's just that anything over the allowance (£2880 in our case) would be taxed so it's best to keep under the limit for the tax relief.

  • deelee
    deelee Scope Member Posts: 56 Contributor
    https://forum.scope.org.uk/discussion/comment/1024112#Comment_1024112

    Oh thank you for that…hope you are having a good weekend 😀

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