Over 50 and re-joining the workforce? 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 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 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, consider setting up a personal pension
- Don’t forget to review your other pension pots and investments to take account of your changed circumstances and ensure you have sufficient funds to be able to retire comfortably when the time comes.
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.