Spent some of the pension

Careful_girl

Am a newbie in this part of the forum but I am sure you will help me. My OH has been out of work for a year. He was given his pension contributions (2 years worth) when he was made redundant and he paid it into his bank account and has used it to live off. I have only just found this out and am pretty concerned. He has only 8 years worth of pension and he is already 40. He is just about to start a new job.
What should we do to ensure we get the best pension for him as possible? I imagine the new company will have a scheme which he will join should he make extra payments or invest some other way?
I have a teaching pension which is trundling along happily. Should we pay more into that as i have heard it is very good?
A total novice at this so all help appreciated.
CG.

dunstonh

What should we do to ensure we get the best pension for him as possible?

Depends on what is available.

I imagine the new company will have a scheme which he will join should he make extra payments or invest some other way?

You need to find that out before you do anything.

I have a teaching pension which is trundling along happily. Should we pay more into that as i have heard it is very good?

Retirement planning should always be split as close to 50/50 as possible. At age 65, you can both earn £7280 without paying tax. If one of you earns £14,000 then you pay over £1000 a year more tax than if you earned £7000 each. Plus, when you die, the spouse gets 50% income. If the spouse with the big pension chunk dies, the other gets a much smaller income.

clairehi

dunstonh wrote:

Retirement planning should always be split as close to 50/50 as possible.

Seems like a good rule of thumb, hadnt thought of it like that b4 but it makes a lot of sense, thanks D.