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 new 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 point 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 hour. 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 offers you tax relief. This 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 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
As Independent Financial Advisers (IFA’s) we will be able to look at all the financial options. 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.
We have offices located at-
Birmingham, West Midlands
London, Central London
Our team of independent financial planners also makes use of meeting rooms in, Towcester, Bedford, Northampton, Wellingborough, Warwick and Droitwich.
Meetings can also be arranged at your home. The first meeting is free. So, why contact us today to see how we can help you.