Age 58 receiving pension from previous employer

A question about : Age 58 receiving pension from previous employer

My husband was made redundant in 2009 (21 yrs with the company) which closed. He took a lump sum and monthly payment from the pension at 55 now being paid by Ppf. Unemployed for nearly 2yrs he was lucky to get job with current employer, pension payment of 6% of salary due to start October. Is it worth paying this for 8/9 years he has left til retirement. We currently try to save his pension payments at the moment. Does he have to join pension scheme when in receipt of pension already?

Best answers:

• Yes, it's almost certainly worthwhile to pay in. Normally that will get him some extra pay in the form of the company part of the pension contributions and it's usually a bad idea to turn that down.
• he does'nt have to, but I would.
  It will boost your retirement and a LS significantly. In fact you could put his current pension income in there. This will save you tax.
  Are you filling your cash S&S isas each year for both of you?
  Do you have a pension in your own name? you will get a personal allowance at retirement, larger than any SP income. So even if you don't work, you should have a personal pension. Every 80 you put in, will become 100 overnight. You'll get a tax free lump sum of 25%, and then possibly the rest paid as an annual income tax free (if you only have the state pension).
  You (or he if you have no income) can put in 2880 per year, which the govt will uprate to 3600.
  Could be an option for savings going forward.