Pension HELP HELP

jojo21cats

Hiya

Anyone out there that can give me some advice, my husband is self employed and he has just turned 30 he has been in a company pension since Nov 98 and left it in Dec 04. He didn't contribute to any pension scheme prior to that and since.

We haven't a clue where to start in going about sorting out a pension for him. Any help, advice, point in the right direction would be very much appreciated.

Thanks

dunstonh

First thing to do is start thinking of it as retirement provision. Not pension or anything else. You need to work out what the both of you want for income and capital in retirement. Then you find out what you are going to get paid with state, pensions and other investments. Then you work it backwards to see what you need to contribute.

The self employed get lower state pensions (as the Govt expects self employed to look after themselves more and they get lower taxation/NI effectively to make up for it).

So, as it currently stands, your husband is going to be on for around £4700 a year from the state and what his existing pension will pay him. Then you have your retirement provision and state pension to add in as well.

Once you know how much you want and how much you have then you can start looking at how to fund that shortfall. No point looking at that though until you know what you need.

If you feel that you are unable to work all that out then you can ask a local IFA to give you that advice.

jojo21cats

Thanks very much for the help and advice I will seek a local IFA.