Personal/Stakeholder pensions for Mums/Carers

tim1234

Dear All,

I've checked the forum but can't find an answer to this question so far...

I'm a member of a company pension scheme and am responsibly paying my dues.

My fianc!e does not yet have a pension plan and so we a researching what we should do - stakeholder/personal, what's the difference?

So far I have worked out, for example, that if she earns £1000/month gross and we want to put £100/month into her pension, that we'd put in the £100 and claim, at the end of the financial year, £20 x 12 months in our tax return... Is that correct?

Once she becomes a mother and looks after the kids for a few years, however, we still want to put £100 + inflation per month into her pension. As she'd not be earning a salary, that money would effectively come out of our bank account = from my salary. How would we claim a tax rebate on this? Do we need a joint pension plan?

It would seem unfair for the government to be able to hold on to the dosh, as it would most certainly be going into a pension fund, albeit for my partner.

Any ideas?

Many thanks,

Tim

jem16

tim1234 wrote: »

So far I have worked out, for example, that if she earns £1000/month gross and we want to put £100/month into her pension, that we'd put in the £100 and claim, at the end of the financial year, £20 x 12 months in our tax return... Is that correct?

No it's not. You pay in £80 to the pension company who then claim the tax relief of £20 from HMRC.

So it doesn't matter if it comes from her salary or your joint bank account.

tim1234

Ah - brilliant... That makes a lot more sense. Must've got myself confused there somewhere.

Cheers,

Tim