Wife's Pension

MoneyGeoff

jem16 wrote: »

Instead you ( or really your wife) pay £2800 into a pension and this will then be grossed up to £3600 by the pension provider.

Oh I see, got it now. Thanks!

atush

/there actually is a way, and it the one reason margaret and I like to advise women to have their own money.

you could get divorced and spilt your assets incl pension. then date and remarry ;-)

margaretclare

atush wrote: »

/there actually is a way, and it the one reason margaret and I like to advise women to have their own money.

you could get divorced and spilt your assets incl pension. then date and remarry ;-)

Love it, atush. Seriously, though, I have seen too many of these plans be suddenly changed at the last minute. 'Oh, he has a good pension, we'll be all right, I don't need to do anything'. Then he develops a preference for a younger model. It has happened. I've been there to mop up the tears when the Mrs, who thought she was so secure, discovers that she wasn't.

I have never in my life gone cap-in-hand to any man for the price of a pair of tights. I've always earned my own bread. Now in retirement, happily-married for the second time, we do combine what we have and we share. We do pretty well between the two of us.

Maybe being brought up without a father has coloured my thinking. I admit to that.

atush

MoneyGeoff wrote: »

OK thank you. The NICs is a non starter, the full time carer or raising children allowances do not apply, she has 2 or 3 years NICs.

I'll look into ISAs, that may be better than continuing to pay 10% into the company pension (ie just pay the 5% that the company match and put the other 5% into an ISA).

Your information on the £3600 is what that article was saying I think. The bit I don't get is that I will still have paid 40% tax on the money I pay into my wife's sipp. Or can I claim tax relief on it? When I fill in my tax return can I say that I paid £3600 into a sipp and get the tax back?

Isas alongside a pension are good, but if you do it instead, you lose the tax relief so I personally would split any spare savings and do both.

margaretclare

atush wrote: »

Isas alongside a pension are good, but if you do it instead, you lose the tax relief so I personally would split any spare savings and do both.

Thinking it over and reading the thread again, it seems that the OP is mainly concerned about saving himself tax and less concerned about providing a pension for his wife.

jem16

margaretclare wrote: »

Thinking it over and reading the thread again, it seems that the OP is mainly concerned about saving himself tax and less concerned about providing a pension for his wife.

Margaretclare, I don't get that from any of the OP's posts.

He sees the income as joint income and saving tax by reducing his pension income and increasing his wife's pension, is saving the household income money.

margaretclare

jem16 wrote: »

Margaretclare, I don't get that from any of the OP's posts.

He sees the income as joint income and saving tax by reducing his pension income and increasing his wife's pension, is saving the household income money.

The way he thinks, and the way I think, are poles apart. No point in trying to explain it. Better leave it there.

jem16

margaretclare wrote: »

The way he thinks, and the way I think, are poles apart.

Doesn't make it wrong though.

margaretclare

jem16 wrote: »

Doesn't make it wrong though.

Where did I say I thought it was wrong? It is simply not a way of thinking that I can relate to at all. It may work for some people. I'm aware that there are some women who don't mind not having a penny-piece of their own. I could not live like that, but if others can, good luck to them.

One of the reasons why DH and I do pretty well between us is that we each have our own pension provisions. That's 100% for both of us, not 100% for him and 60% of his for me. We also have annuities, SERPS/S2P, call it what you will. Time will come when there's only one of us left, and that one will still have 100% of his/her own.

xylophone

The OP doesn't say that Mrs OP doesn't have any money of her own, just that she doesn't have a pension......