Help please on savings and investments

MallyGirl

A pension is just a wrapper. If you invest inside that wrapper in stocks and shares there will be risk - how much depends on what you invest in. You could just leave as cash inside the pension wrapper but the buying power of the money would get eroded by inflation so that is not ideal.

NStephanie83

You could just leave as cash inside the pension wrapper but the buying power of the money would get eroded by inflation so that is not ideal.

Good point.

What will be the term to search for reliable, regulated, low-cost private pension provider for wife (non-taxpayer).

Are there any rules against husband putting money in wife's pension for this case?

Thanks.

MallyGirl

No reason you can!!!8217;t choose to put money you have earned into your wife!!!8217;s pension (£2,880 max if she isn!!!8217;t earning).

There are several threads around low cost pension providers. Once you have a wrapper I would suggest doing some reading to work out your attitude to risk - then choose a multi asset fund that fits that risk profile.
Some examples might be Vanguard VLS60 or HSBC balanced. Searching on these will give you the general idea.

harshitguptaiitr

See this link for tax relief on pension that a lot of people have advised you on this forum
https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Also see following link
https://www.moneysavingexpert.com/savings/cheap-sipps

harshitguptaiitr

For your other queries, here are some advice which are easier to give without knowing your full situation - not sure how easy it will be to implement

1 - When your second daughter is 9 months old, send her to childcare nursery using your childcare vouchers and see if wife can get a job.

2 - Budget for increased expenses when your children start schooling

3 - Tourism + Social Events + Eating Out = 4000 per year, which is around 77 per week, see if you can cut down on this to build up more savings

4 - Consider over-paying into your mortgage

5 - Are you out of contract on your Mobile / Internet / TV package?

6 - Switch current accounts to get some easy cash

7 - SignUp to Martin's weekly email for more moneysaving tips.

NStephanie83

Thanks for all the points.

One more question please considering wife is unemployed
Lifetime ISA vs SIPP - which will be more suitable?

PeacefulWaters

NStephanie83 wrote: »

Thanks for all the points.

One more question please considering wife is unemployed
Lifetime ISA vs SIPP - which will be more suitable?

SIPP is currently more flexible over retirement date. Currently 55+ but likely to change.

LISA would be a perfectly reasonable top up if you wanted to put in more than £2,880, but note the age 60 restriction.

Zorillo

I'd pay it into your pension rather than hers. You get 40% tax relief that way. You also want to up your own contributions anyway, £3k a year us isn't much out of a salary of £50k and unless you've missed a zero off of your own pension pot, £6500 is miles behind where it should be aged 35.

harshitguptaiitr

Max out 2880 (per year) in SIPP of wife's account and AFTER that think about LISA.

NOTE- any decision related to LISA must be taken BEFORE 40th birthday.

Also, I sense that you are having difficulty in finding a SIPP provider...

Dazed_and_confused

So we open an account in wife's name with some private pension provider. Husband pays money into this and then at end of year we contact HMRC to give us 720? That sounds good.

I believe this money will be invested so can go both up and down. Or is this safe saving account.

You do not contact HMRC, the pension company will automatically add the basic rate tax relief (some immediately some when they actually receive it from HMRC).

You don't have to "invest" it, it can be kept as cash but then you are losing money due to inflation.