Stay at home mum - should I start personal pension?

smellykelly32

I recently gave up work to look after my children. I have a LGPS which is now on hold. I am 33 years of age, and would like to draw my pension at 65. I am not planning to return to work in the near future.

My husband is quite a bit older than me, and I am concerned about how I will financially support myself should my husband die before me.

I am considering investing in a personal pension. I can only really afford to pay £20 - £50 a month.

I have looked around online, and there seems to be a few of the bigger names offering pensions.

Does anyone have any advice? Any investments I should avoid? Is the amount I am planning to invest enough to give me a decent pension?

atush

What tyep of pension and life insurance does he have? How many years do you have with the LPGS? If you return to work, will it be there?

If your husband has no pension or life insurance, and you are worried about your position should he die, then I would consider a return to work, at least once the children go to primary school.

As for pension, as a non worker, you could put in up to 2880 per year, which is grossed up to 3600 by tax relief. The advantage of a PP for you is that you can access it from age 55-57 (depending on what your SPA is) and so have the scope to retire before age 65 (or 67 as the State pension will be).


Because if you access your PGPS early it could be reduced severely, ie 50% for age 57 and 10% for age 65 (if your scheme age is 67).

I would try for 50 a month if you c an, as that is even a bit low so might restrict who you can use. Go to Cavendish online and HL to start, but there are others.

smellykelly32

We have life assurance tied to the house, so if he dies before mortgage is up the mortgage will get paid. He also has a LGPS, which I am a nominated person, so I receive a pension should he die in service. Obviously I'm hoping for this never to be the case!! I am more concerned about him dying once he has retired (at average life expectancy) and his pension dying with him.

I've got about 10 years in the LGPS. If I return to work I suspect it will be very unlikely to be in Local Government (seeing as it has vastly reduced in size since I started there)

Thanks for the advice - will look at those websites.

mgdavid

smellykelly32 wrote: »

....... He also has a LGPS, which I am a nominated person, so I receive a pension should he die in service. Obviously I'm hoping for this never to be the case!! I am more concerned about him dying once he has retired (at average life expectancy) and his pension dying with him.........

Do you have this the right way round?
I'm no expert but would have expected just a lump sum to you if he dies in service, and a widow's pension for your lifetime if he dies after retirement and his LGPS is in payment?

jem16

smellykelly32 wrote: »

I am more concerned about him dying once he has retired (at average life expectancy) and his pension dying with him.

You will still receive half his pension - it doesn't die with him. You would also receive a lump sum if he dies within 5 years of retirement.

http://www.lgps.org.uk/lge/core/page.do?pageId=101550

jem16

mgdavid wrote: »

I'm no expert but would have expected just a lump sum to you if he dies in service,

It's both a lump sum and pension if the member dies in service.

http://www.lgps.org.uk/lge/core/page.do?pageId=102470

xylophone

Re state pension - you and your husband will receive it in new scheme?

https://www.gov.uk/new-state-pension/overview

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

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