Husband 44 and has NO pension...help

massuch

My husband is self employed and does not have a pension.

I have come across CIS paperwork including statements from some contracted out policy he took years ago. Should he keep this going or move it somewhere else.

We are not sure where to begin to try and accumulate some kind of pension for him.

I work in the NHS so have my own pension.

SeduLOUs

Do you know what your NHS pension is worth? If you have worked there a long time and have a decent salary your pension might be more than most couples get combined through private schemes.

Doesn't help him if anything happens to you or your break up though, so he does need to start saving ASAP.

Cyberman60

The husband could be entitled to a share of the ex-wife's pension if they split up, through the divorce arrangement. Also, if one partner dies then the other partner could qualify for a half-pension based on the other partner's pension, so need to check pension rules.

massuch

I have only been in the NHS for 8 years but am younger than him at 36 so obviously he will be stopping working before me.

Looking for some rough ball park figures of how much should save and where to go for getting something started if it's not too late.

dunstonh

Looking for some rough ball park figures of how much should save and where to go for getting something started if it's not too late.

Its not too late but its not going to be cheap. Indeed, it may not be affordable without sacrifice. However, the decision is whether you sacrifice now or sacrifice later (or a bit of both).

A self employed person gets lower state pension entitlement currently. That is changing but historic contributions will be taken into account so it wont improve the situation much.

Thankfully, you are in an excellent pension scheme but the fact you are 8 years younger means that he will probably have to keep working in later life unless he does something serious now.

SeduLOUs

Cyberman60 wrote: »

The husband could be entitled to a share of the ex-wife's pension if they split up, through the divorce arrangement. Also, if one partner dies then the other partner could qualify for a half-pension based on the other partner's pension, so need to check pension rules.

If NHS pension member dies before retirement, a lump sum of two years salary is paid to spouse and other clauses for payments if there is a death after retirement.

With only 8 year service and making assumptions about current salary, NHS pension would probably be around £2k-£4k per year, so probably do need to start making other provisions.

If confident that there won't be a messy breakup, it could be an option to buy more NHS pension. I don't know the details but it may be more fruitful than private schemes. Either way you need to start saving pretty hard ASAP.

atush

If this was his first pension (and it isn't) he should save approx 22% of his income. But this can include the tax relief.

but he has an old contracted out one, so do get a statement and see what it is worth. Also check if it has any valuable guarantees like GMP. This would be lost on any transfer.

Setting up a PP is fairly easy online. look at places like Cavendishonline. ahve him pay in as much as he can afford.

And I assume he is keeping up with paying his Nics?

If you want to retire early from the NHS, you'd be advised to look at both S&S isas and a DC pension for yourself to provide money to live on while waiting for the NHS pension to pay out as getting it early will cost you big time.

FatherAbraham

massuch wrote: »

My husband is self employed and does not have a pension.

I have come across CIS paperwork including statements from some contracted out policy he took years ago. Should he keep this going or move it somewhere else?

It depends upon the terms of that policy.

However, as a very crude rule of thumb, older private pensions are often more expensive than modern personal pensions. But not always, when all things are considered.

You need to be more specific about what the charges are, whether there are any special benefits (such as a guaranteed annuity rate), and anything else which might be relevant.

Without the details, no-one can help you with that question.

Warmest regards,
FA

xylophone

Both you and your husband will be receiving state pension in single tier - the legislation has now been passed.

See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

Regarding CIS this thread might be of interest https://forums.moneysavingexpert.com/discussion/5022436



http://www.cavendishonline.co.uk/pensions/

https://www.moneyadviceservice.org.uk/en/articles/pensions-for-the-self-employed

http://www.pensionsadvisoryservice.org.uk/media/943407/pension_saving_self_employed.pdf

http://www.hmrc.gov.uk/incometax/relief-pension.htm

If you need an IFA http://www.unbiased.co.uk/

kidmugsy

At the very least he'd want to accumulate enough pension so that when he does retire his state pension + personal pension use up his personal allowance against income tax.

For example, if state pension = £8k p.a. (say) and personal allowance = £11k p.a. (say) he'd want a personal pension of £3k p.a.