What is a silver striver I hear you ask? Is it a new superhero from Marvels Infinity Wars film? Well no, a silver striver is the term being used by marketing types for people who are working past their retirement date. If this is something that you are considering out of choice or necessity, then here are some key points to consider.
How do I stand with my employer?
You can normally work for as long as you want. There are a few exceptions to this rule. If your work requires certain physical abilities that you can no longer perform or if there is an age limit set by law. This is the case for firemen. Then your employer can force you to retire.
You also have the right to ask your employer to offer you more flexible working or part-time hours. Although you have the right to ask, your employer also has the right to decline your request.
Should I take my state pension while I am still working?
You can draw down your state pension while you are working. You need to give a bit of thought about your own personal tax situation. The additional state pension income could move you into a higher income tax bracket. This additional income may also affect any means-tested benefits that you receive.
You can delay taking your state pension. The government will increase your state pension by about 5.8% for each year you wait.
I have a private pension. Should I delay taking this?
If you were planning to buy an annuity with your pension pot, delaying the purchase will increase your annual income in retirement.
More people are now looking at pension drawdown as an alternative to an annuity. Again, delaying the drawdown will see your income rise. As mentioned before, remember the tax!
Can I still pay into a private pension?
Yes, if you have not already taken your tax-free cash lump sum or drawn down your pension. There is no limit to the amount you put into your pension each year but only the first £40,000 or 100% of your salary (whichever is the lower) offers you tax relief. This is known as your annual limit and includes contributions paid by yourself and your employer. Tax relief is only available to you up to the age of seventy-five.
If you have already accessed your pension then usually you are limited to contributions being capped at £4,000 a year.
As a silver striver, what are the benefits?
You no longer have to pay class 1 and class 2 national insurance (NI) once you are over your state pension age. This will mean that your take-home pay will increase.
Additionally, you can get bus passes for free travel when you reach state pension age. If you live in London, the over sixties are entitled to free travel on, Buses, The Tube, Docklands Light Railway and London Overground.
Many people enjoy the social benefits of their work. Being part of a team can be important. Some feel that their work defines them as a person, giving this up can be difficult.
How Anstee & Co can help you as a Silver Striver.
As Independent Financial Advisers (IFA’s) we will be able to look at all the financial options open to you. Being independent means that we will look at the “whole of the market”, not just solutions from and limited panel.
We can also help you with cash flow modelling which will help you see what your finances will look like over your retirement years. You can find out more by viewing our short video by clicking here. So, why not contact us today to arrange an appointment. The initial, “getting to know you” meeting is at our expense and with an obligation. Meetings would normally be arranged at your home or at one of our offices located at-
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Towcester, Northamptonshire
- London, Pall Mall, Greater London
With the current need for social distancing, we can also arrange a meeting by using video conferencing, such as –
- Zoom
- Skype
- Facetime
Also, telephone meetings can be arranged. Whatever works best for you.
If you have any thoughts or views about this article, “Do you want to be a “Silver Striver”? The dos and don’ts.”, then please let us know.
The information contained in this article does not constitute advice. No action should be taken based on this information alone. Anstee & Co is authorised and regulated by the Financial Conduct Authority (FCA).
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