Pension advice for my wife

Wulfrune

My wife will be 38 in February 2017 and has a lowish income job. However, given the fact that I'm 19 years her senior, she wants to take out a small pension to help her prepare for the future. She wants to invest around £50 per month, can anyone offer any advice please?

We already own our own home.

Thanks

Wulfrune

dunstonh

Dont look at each other individually. Look at it together.

it is bad planning to have the pension income all in one name. You can both earn £10k tax free. If you get £20k in retirement and she gets nothing, you just pay £2000 more in tax than if you were earning £10k each.

Start to rebalance your finances.

AnotherJoe

For a start its not really enough. Over say 30 years that would be £50k with tax rebates and growth. £50k in 30 years time isnt really a lot is it? At around £10k a year withdrawal that would last for just 5 or 6 years.

So I'd say she should be saving at least double and probably triple the £50.

She could save the money in a LISA or a SIPP. I'm not up on LISA's to know the benefits compared to a SIPP and she cant start one of those until next year. But she could put the money aside now and then put it into a LISA when they become available next year if that is best for her.

p.s. great point you could be contributing to her pension as well. Maybe pensionwise would advise? Whatever you do, saving by itself isnt enough, you have to save enough to make it worthwhile. Token payments dont cut it.

xylophone

a lowish income job

Is there an occupational pension scheme?