Self Employed, No Pension Plan 🙈

bianchigirl

Hi all,

Have had a look around and can't find the advice anywhere.

My partner is 40 next week and has been mostly self employed (he worked for about 7 years for Royal Mail)
He has never invested in any form of pension plan other than the Royal Mail years.

Few questions- what can/should we do? My pension will be OK but I'm not sure it will support us all as a family very well (I'm serving Army staying for at least full 22years service and have a LISA S&S, 30yo)

He doesn't have much disposable income and his work is seasonal (golf coach)
I should be mortgage free on my house (128,000ish) in 5 years, he has a mortgage of around 45,000 on a buy to let worth 125,000 currently.

Sorry it's a bit rambly, hopefully I've included enough background info.

I'm thinking of getting him to open the LISA with Newcastle BS just so it's there, but would we be better just putting all savings into my LISA or going down the savings account route... Any ideas/ advice would be great.

Thanks :beer:

pramsay13

Definitely worth opening a LISA if you can do it in time.

bianchigirl

Thanks for replying so quickly!
The Newcastle one can be opened online, so will get him to do that today ��

greenglide

But if you open a LISA surely it is for retirement rather than house purchase?


You would greatly be better off with a stocks and shares LISA rather than a cash LISA from Newcastle BS.


Your partner needs a pension.


He is truly self employed, isn't he (a sole trader rather than a limited company)?

xylophone

Your partner has a deferred pension with RM which he will be able to access under the rules of the scheme at the appropriate age.

https://www.royalmailpensionplan.co.uk/section-ab/leaving-scheme/deferred-benefits

Has he checked on his state pension position?

https://www.gov.uk/check-state-pension

He can start a pension of his own.

What is the answer to the question in 4 above?

bianchigirl

We're not looking to save for a house purchase as we both own our own already, so it would be for retirement.

I thought the S&S LISA was for people saving for longer than he would be?

Xylophone - I'll get him to look into that tonight then, thanks.

Kynthia

bianchigirl wrote: »

We're not looking to save for a house purchase as we both own our own already, so it would be for retirement.

I thought the S&S LISA was for people saving for longer than he would be?

Xylophone - I'll get him to look into that tonight then, thanks.

Won't he be saving for at least 20 years?

bianchigirl

Yes, I'd seen an article by Martin at some point who said that it wasn't as advisable to do a S&S LISA this late on, but maybe I've misunderstood it?

Dox

Have a read of this, which might help: https://www.moneysavingexpert.com/savings/lifetime-isas/

letspretendforaminute

A £125,000 BTL sounds like more effort than it's worth. He'll be renting to the lower echelons of society and all the stress that comes with plus the voids and maintenance.

If it was me I'd sell-up and drip the funds into a stocks and shares ISA where I could (and do) easily yield 4-5% on low cost trackers and blue chips. I'd put the income from this into a SIPP which will add up to a tidy six figure sum in itself after 18 years and you've still got the original ISA funds so an income of ~£750p/month without having to drawdown on capital.

His job sounds more like a hobby to me if it's seasonal and imo he should pick up a second one with a regular income. I'm about the same age, compete at an international level in a minor sport and do some coaching but pull pints 3x6 hours per week (easy) for £650 per month. I also own my own place outright and have £120k in a fund account and do exactly that (SIPP now £21k) and for all intents and purposes consider myself retired (FIRE'd). Obviously, I've taken a huge paycut to get where I am today but it is a lifestyle choice and my financial security doesn't seem that different to yours (combined).

LHW99

If you are expecting to be together as a couple until / after you retire, you could gift him any spare money from your own salary, to add to his SIPP / personal pension. He can put in up to his net salary each year and could claim the tax relief at his tax rate (presulambly 20%)