Pension Options

clairesilverspar

My OH is not part of a pension scheme through his workplace. He's part of a small firm with <5 employees and was never signed up to a scheme. He's now nearly 30 and starting to consider the fact that he has no pension contributions built up so far.
I'm a bit confused at options as I was auto-enrolled through my employers.
I presume he would need to find a private scheme to join. Are these likely to be expensive? He's on minimum wage and has little spare cash. If I have the spare money can I help with contributions? Where would be the best place to find out about the options?

dunstonh

I'm a bit confused at options as I was auto-enrolled through my employers.

Firms have staging dates based on their size. It is possible that his firm hasnt got to their staging date yet.

I presume he would need to find a private scheme to join. Are these likely to be expensive?

No they are not expensive. Indeed, the could be cheaper. However, that is jumping the gun as the smallest firms havent got much longer left before they need to introduce their workplace scheme.

He's on minimum wage and has little spare cash. If I have the spare money can I help with contributions?

Yes. it is important to look at your retirement planning jointly. Not individually. For example, £22k income in one pays £2200 more tax than 2 lots of £11k income each. So, just a simple bit of planning that can cost you no more, can save as much as £2200 a year.

Do remember that if you pay in peanuts, then you get back peanuts. He is long overdue in starting his provision. So, there is an element of catch up needed now. So, make sure it is not treated as a tick box exercise just to pay an amount into a pension to make him feel better. This is serious stuff. Luckily, if his income is that low, then when the state pension is paid, he may not require much personal provision to maintain lifestyle.

Where would be the best place to find out about the options?

Find out what the employer is doing first.

PeacefulWaters

clairesilverspar wrote: »

I presume he would need to find a private scheme to join.

Good idea. Review when his employer gets around to offering a pension with matching contributions.

Are these likely to be expensive?

It depends how much you want to invest. Bigger contributions = bigger pension in retirement.

He's on minimum wage and has little spare cash. If I have the spare money can I help with contributions?

Nothing to stop you giving him money that he then sticks into his pension.

Where would be the best place to find out about the options?

Take a look at the Cavendish Online web site. That may well provide relatively convenient options.

xylophone

Your husband should check with his employer as to when a scheme will be offered.

https://www.citizensadvice.org.uk/debt-and-money/pensions/types-of-pension/workplace-pensions/

http://www.thepensionsregulator.gov.uk/en/employers?gclid=CPi61tWT2NECFdIy0wodR18P8A