Pension for housewife

Mounty72

Hi I'm new here and currently stay at home mum to our 3 children. I have just turned 40 and don't have a pension which is of great concern to me. Could anyone advise me where or how to go about starting a personal pension please?

jem16

Mounty72 wrote: »

Hi I'm new here and currently stay at home mum to our 3 children. I have just turned 40 and don't have a pension which is of great concern to me. Could anyone advise me where or how to go about starting a personal pension please?

Either look for an IFA at https://www.unbiased.co.uk or try looking at Cavendish Online as a starting point for DIY.

atush

I agree with Jem as to how. You want low cost, but good choice of investments if you want to choose. If you don't like choosing and don't want an IFA, look at pensions that allow you to invest into funds like the Vanguard Life strategy series where you pick the one that suits your risk profile.

You can invest up to 3600 per year (which would mean you pay in only 2880) each year you are not working. In years where you earn, you can invest up to your earnings if greater than 3600 unless your earnings are over 50K now, or 40 K next year.

jackyann

I assume that you know about Home Responsibilities Protection for State Pensions? Assuming you paid in to the State Pension until you had your children, you will have credits until the youngest is 12.
I understand that you wish to add to that, but just wanted to check that you knew you were adding to a basic, not starting from scratch.

Can I suggest that you research something that I did when my children were young? The knowledgeable people here will tell you if such a product still exists, and if it is sensible.
I paid in to an insurance scheme. The idea was that if I went under the proverbial bus, there was an immediate payout to enable OH to organise extra care for the children. It matured when youngest was 16 & I was able to put it into the pension pot (but can't remember exact details)

atush

I took out a life insurance policy for just that reason when I had my first. It was to be invested to pay for child care should I die and any capital left over to be split among the boys.

mgdavid

Mounty72 wrote: »

Hi I'm new here and currently stay at home mum to our 3 children. I have just turned 40 and don't have a pension which is of great concern to me. Could anyone advise me where or how to go about starting a personal pension please?

what's the pension situation of your husband / partner? If he has one or more final salary or defined benefit pensions then almost certainly there will be provision of a widow's pension within them.

margaretclare

mgdavid wrote: »

what's the pension situation of your husband / partner? If he has one or more final salary or defined benefit pensions then almost certainly there will be provision of a widow's pension within them.

The OP has not said that her husband is dead, only that she is concerned about her own provision!

BobQ

margaretclare wrote: »

The OP has not said that her husband is dead, only that she is concerned about her own provision!

True but I do not think this was MGDavid's point. It may be a factor in the poster's situation that her husband may be paying for a pension that would provide some income for her if the worse were to happen.

Its still a good idea to open a personal pension however.

kidmugsy

Saving for your old age may be a good idea, but it need not be in a pension: an ISA may be an attractive alternative. You might like to read the thread on ISAs vs Pensions:
https://forums.moneysavingexpert.com/discussion/375217

Anyway, if you decide to opt for a pension then the maximum annual contribution (that's the limit per tax year, 6th April to 5th April the next calendar year) is £3600 gross. The "gross" implies that you send the pension company a cheque for 0.8x£3600 (=£2880) and they reclaim the other £720 from the taxman.

atush

Never rely on just your husband's pension. As you cannot 100% count on staying married.

In any case, you will have a personal allowance in retirement, and your husbands pension cannot use it. So best to have some pension provision in your name.

BobQ

atush wrote: »

Never rely on just your husband's pension. As you cannot 100% count on staying married.

.

IN which case she would most likely get a share of his pension in a settlement.