Stakeholder pension advice needed please

bee1234

Hi

I'm 48, female & have not worked for almost 18 years as bringing up children. Husband has always travelled a lot. Have work pension but probably wouldn't buy a pint of milk when I'm retirement age.need to get a pension sorted as OH works abroad and while this was initially for a couple of years I can't see him coming back! I want to protect myself and while I am aiming to go back to work(a daunting prospect) I need my children to finish their schooling first.

Can anyone give me advice please - am currently negotiating with him re monthly amount but initially want to pay at least £250 month if not more.

xylophone

Work pension? Deferred Defined Benefit? Or?

Do you get annual statements?

If you have no earned income, you are limited as to the amount you can contribute to a pension to £3600 gross per annum.

You would arrange to pay the provider £240 a month and the provider would claim tax relief of £60 a month.

http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/

Once you return to work, your employer should provide a pension plan to which you both contribute.

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

bee1234

Hi

Thanks for your reply. Yes I do get annual statements but it's really not worth anything. I will go and have a look at the link you provided.

Just doing some research on line now and I'm wondering whether investing the same amount of money in savings would be a better alternative? This is just based on my age and time before retirement. I'm very worried about trying to get back into work & am planning for a future alone. This would be a worst case scenario but at this time in my life I need to be realistic. We do have a house which will be mortgage free in about 5 years.

kidmugsy

A pension is a good bet for you if you will otherwise have income below the Personal Allowance (vs income tax) when you are old. You'll get the tax relief as the money goes in, but you won't pay tax on your withdrawals when you take them.

But meantime, have you got an emergency cash fund?

mgdavid

bee1234 wrote: »

...... while I am aiming to go back to work(a daunting prospect) I need my children to finish their schooling first..........

This is unusual and would seem not to be helping you; could you not pick up part-time work - say, a few mornings - and ease yourself back into the workplace gently?

xylophone

If by retirement age you mean state pension age you have nearly twenty years to go.....

What kind of pension is your work pension?

bee1234

kidmugsy wrote: »

A pension is a good bet for you if you will otherwise have income below the Personal Allowance (vs income tax) when you are old. You'll get the tax relief as the money goes in, but you won't pay tax on your withdrawals when you take them.

But meantime, have you got an emergency cash fund?

Yes thankfully I do have some cash.

bee1234

mgdavid wrote: »

This is unusual and would seem not to be helping you; could you not pick up part-time work - say, a few mornings - and ease yourself back into the workplace gently?

Yes that is my plan within the next few months - still a daunting prospect after 17 years!

bee1234

xylophone wrote: »

If by retirement age you mean state pension age you have nearly twenty years to go.....

What kind of pension is your work pension?

Yes when you put it like that I do have time on my side.

Re the work pension I'm not sure will dig out the paperwork today.

Had maybe too much time on my hands yesterday and it got me thinking about all of this. Am starting to panic less as I understand more what I need to do.