Pension, work / state?

SantaKlaus

I am 35 and still haven't managed to start a pension due to lack of spare wages. I have also been trying to save to get on the property ladder, which i am almost there now.

My question is, If i start a work pension do i still get a state pension when i retire? if i do then is the state pension less because i will have a work pension?

I'm going to struggle putting much money into a work pension as it is, so now i'm worried about our future, my wife doesn't work, she is not a UK citizen so will not get a state pension so my pension will have to support us both when we retire. Good luck to us eh!!

jamesd

You still get the state pension. The amount you get is not going to be affected by your work pension in any way.

In the past, and for another year or so, there was the option to contract out of the Additional State Pension in personal schemes, now abolished, and work schemes, still allowed for a little while. That wouldn't affect the Basic State Pension, just the earnings-related Additional State Pension. So if you see discussions about work pensions affecting state pensions, you can safely disregard them because they refer to older things that won't affect you.

kidmugsy

SantaKlaus wrote: »

my wife doesn't work, she is not a UK citizen so will not get a state pension so my pension will have to support us both when we retire.

I'm not sure that not being a UK citizen will deny her a State Pension. Certainly if she's an EU citizen, and works, and accumulates her National Insurance contributions she'll be due a (British) State Retirement Pension.

If she set up some modest little source of self-employed earnings, she could pay the cheap self-employed NI contributions and accumulate pension rights that way.

atush

Also, she will nat ins contribs (NICs) for each year she stays at home with a child up to the age of 12 (used to be 16).




If you dont' have children, she could start work (even self employed as above) and pay NICs and get a state pension in her name.


AS for you, who do you work for? Do they have an employers pension? If they don't, they will soon have to as it will be law.


The best pension is one that someone else (ie your employer) pays into for you.

SantaKlaus

kidmugsy wrote: »

I'm not sure that not being a UK citizen will deny her a State Pension. Certainly if she's an EU citizen, and works, and accumulates her National Insurance contributions she'll be due a (British) State Retirement Pension.

If she set up some modest little source of self-employed earnings, she could pay the cheap self-employed NI contributions and accumulate pension rights that way.

She's not from the EU either. She's Thai. I have no idea on how to be self employed and the tax issues that that would cause lol

SantaKlaus

atush wrote: »

Also, she will nat ins contribs (NICs) for each year she stays at home with a child up to the age of 12 (used to be 16).




If you dont' have children, she could start work (even self employed as above) and pay NICs and get a state pension in her name.


AS for you, who do you work for? Do they have an employers pension? If they don't, they will soon have to as it will be law.


The best pension is one that someone else (ie your employer) pays into for you.

Are you sure? She's not a UK or EU citizen and has never worked here so has paid no NIC's

Yes we have a baby so she cannot work

I work in the wood industry (I'm a wood machinist), yes they have a pension scheme but i've said no every year when asked if i want to join because i cant afford it. I'll have to join it now, atleast they will add some to it, i cant remember how much think, i think it's 2% or 3%.

kidmugsy

SantaKlaus wrote: »

She's not from the EU either. She's Thai. I have no idea on how to be self employed and the tax issues that that would cause lol

It may seem bleeding' obvious, but why not start a business offering to come to people's houses and cook them a Thai meal?
She'd have no income tax to pay until she cleared, after costs, £10k p.a., and the cheap Nat Ins applies up to (somebody help me?) about £5k per year. All you have to do is phone the Nat Ins people and get them to confirm that her being a foreigner doesn't exclude her from a State Retirement Pension.

UPDATE: I've just seen that she's caring for a baby. Put this brilliant scheme on hold until a later date.

atush

SantaKlaus wrote: »

Are you sure? She's not a UK or EU citizen and has never worked here so has paid no NIC's

Yes we have a baby so she cannot work

I work in the wood industry (I'm a wood machinist), yes they have a pension scheme but i've said no every year when asked if i want to join because i cant afford it. I'll have to join it now, atleast they will add some to it, i cant remember how much think, i think it's 2% or 3%.

Yes I am sure because like she is, I am also a non UK non EU citizen. But you need to have the Child benefit in her name. If it is in yurs, stop it and have it transferred to her.


Join the pension NOW. And add more to it, when you get a pay rise and when your OH goes to work once the baby is older.


Great idea about the meal cooking- I'd pay for it (even though I know how to cook Thai). She could do it on your day off when you are looking after baby, but that is just for money., She won't need it for the Nics if she has the child benefit.

SantaKlaus

Sadly neither of us drive, so this would not be successful. We live in a small village, there is no money to be made in cooking thai food to people here. there's a take away here and a pub. Thats how small the village is haha (Its one street, with a few lanes!). Nobody here even likes Thai food (Including me haha).

Should i be speaking to a financial advisor now? As i've messsed up, i've been reading online that now its too late to pay into a pension anyway, as it wouldn't be worth it, I should have been doing it from 20 years old, not from 35 lol.

Do you think it's best to speak to a financial advisor?

R_P_W

SantaKlaus wrote: »

Sadly neither of us drive, so this would not be successful. We live in a small village, there is no money to be made in cooking thai food to people here. there's a take away here and a pub. Thats how small the village is haha (Its one street, with a few lanes!). Nobody here even likes Thai food (Including me haha).

Should i be speaking to a financial advisor now? As i've messsed up, i've been reading online that now its too late to pay into a pension anyway, as it wouldn't be worth it, I should have been doing it from 20 years old, not from 35 lol.

Do you think it's best to speak to a financial advisor?

You still have 30 plus years of work to go! Where have you read it's too late? Surely something is better than nothing?

atush

SantaKlaus wrote: »

Sadly neither of us drive, so this would not be successful. We live in a small village, there is no money to be made in cooking thai food to people here. there's a take away here and a pub. Thats how small the village is haha (Its one street, with a few lanes!). Nobody here even likes Thai food (Including me haha).

Should i be speaking to a financial advisor now? As i've messsed up, i've been reading online that now its too late to pay into a pension anyway, as it wouldn't be worth it, I should have been doing it from 20 years old, not from 35 lol.

Do you think it's best to speak to a financial advisor?

How do you know if people don't like Thai? You have a pub?


I live in a small town in a small island. Guess where the only place to buy thai food was? One special night down the local pub. It could be once w eek, once a month, or once a year. People love it.


There is now a thai restaurant in our main town, but that pub still sells Thai on a friday night. Cooked by someone's wife.


I lived in jersey for a time, and one of our local beach shacks is now a Thai takeout at night. In fact, there are two now as beach hut/cafe's are only used during the day. On an island with Michelin starred chefs it is a top 20 eatery (and another beach shack in the north is a top ten). Don't dismiss the idea. If you have a local cricket or rugby club, ask to be allowed to cater a special night.


You do not need a financial advisor just yet. What you need to do is two things (on Monday !!!!)


Join your work pension, and make sure your wife has the CB in her name.