Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Cazza
    • By Cazza 11th Oct 17, 3:51 PM
    • 1,126Posts
    • 945Thanks
    Cazza
    Pension advice for Sole Trader
    • #1
    • 11th Oct 17, 3:51 PM
    Pension advice for Sole Trader 11th Oct 17 at 3:51 PM
    A few years ago I asked for some advice on here about retirement planning for DH and I... those plans fell by the wayside as we then discovered I was pregnant. Fast forward 3.5 years and I'm pregnant with No2 but have had another look at our outgoings and feel we are now in a position to look at our retirement plans again. I'd appreciate your thoughts, please. So, a little background...
    • DH and I are both 36.
    • I am a member of the LGPS. About to go on Maternity Leave but will return to work. Currently FT with a salary of just over £38,000. Plans are that I will return to work FT after No2 and although I expect to become a HR taxpayer at some point in the future that is not imminent and would depend on applying for vacancies / promotions as they become available.
    • DH is a Sole Trader. Income via self assessment is c£12-18,000. Unlikely that he will become a HR taxpayer. He won't be converting to a Ltd Co in the foreseeable future.
    • DH does not and has never had any form of pension savings.
    • We have a joint mortgage with 24 years remaining, c50% LTV.
    • We have savings to cover 6-9 months of day to day living expenses, plus an emergency fund and separate savings to cover the next 12 months of annual one offs, such as car insurance (which is topped up on a monthly basis so we're always 12 months ahead)
    • No interest bearing debts, c£8,000 on 0% credit cards but we have further savings to clear those if / when we need to.
    • We have saved enough to cover the drop in income from my Maternity Leave (and to make up the shortfall in my LGPS contributions for the unpaid part of ML too).
    We expect to be able to make contributions towards a pension for DH in the region of £100-150 per month. I'd rather avoid a SIPP because we do not feel we have the time or knowledge for that type of product at the moment.


    I think that leaves us with a S&S ISA or a Stakeholder pension? What factors do I need to think about when deciding between the two? I've done a fair bit of research but am still sitting on the fence and I don't think the amount of money we're able to contribute each month makes it worthwhile getting advice from an IFA (and the local ones all seem to want a significantly larger investment portfolio before they'll bother). If Stakeholder is the best option, where do I go to find the "best" one? I have read the main guides on this website and on other websites but feel a little lost about where to go next.
Page 1
    • xylophone
    • By xylophone 11th Oct 17, 4:27 PM
    • 23,079 Posts
    • 13,375 Thanks
    xylophone
    • #2
    • 11th Oct 17, 4:27 PM
    • #2
    • 11th Oct 17, 4:27 PM
    https://www.cavendishonline.co.uk/pensions/stakeholder-pensions/

    https://www.legalandgeneral.com/pensions-retirement/stakeholder-pensions/

    https://www.standardlife.co.uk/c1/accounts-and-services/pensions/stakeholder-pension-features.page

    http://www.scottishwidows.co.uk/retirement/pensions-annuities/stakeholder-pension/


    or have a look through here to see if anything might suit?

    https://www.money.co.uk/pensions.htm?track=843687&creative=199260971752&ne twork=s&placement=&adpos=1o2&gclid=EAIaIQobChMIytD Px-_o1gIVj5kbCh2pfwRCEAMYAiAAEgIo9vD_BwE
    • Cazza
    • By Cazza 12th Oct 17, 12:23 PM
    • 1,126 Posts
    • 945 Thanks
    Cazza
    • #3
    • 12th Oct 17, 12:23 PM
    • #3
    • 12th Oct 17, 12:23 PM
    Thank you, so do you think that a Stakeholder is more appropriate than a S&S ISA? That was my gut instinct but I can't say I'm sure I know why that is the better option of the two, aside from the fact that the flexibility to withdraw funds from the ISA isn't something that we feel is a need for DH.
    • xylophone
    • By xylophone 12th Oct 17, 12:30 PM
    • 23,079 Posts
    • 13,375 Thanks
    xylophone
    • #4
    • 12th Oct 17, 12:30 PM
    • #4
    • 12th Oct 17, 12:30 PM
    Has your husband obtained a state pension statement?

    He will get tax relief in a pension.

    He might look at LISA.

    https://www.moneysavingexpert.com/savings/lifetime-ISAs
    • LHW99
    • By LHW99 12th Oct 17, 8:52 PM
    • 894 Posts
    • 735 Thanks
    LHW99
    • #5
    • 12th Oct 17, 8:52 PM
    • #5
    • 12th Oct 17, 8:52 PM
    Any pension type investment would be topped up by tax relief from HMG. ISA's are not, but there is no tax payable on withdrawals whereas with pensions only 25% of the final (DC) pot is tax free.
    Have you looked at a LISA?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

179Posts Today

1,402Users online

Martin's Twitter