Have no idea where to start

youngandreckless

Hi everyone,
I'm hoping someone with some expertise may be able to help.  I have a nest pension through my old workplace which has about £2200 in it. I'm currently a stay at home mum and hoping to be back in work over the next year.  I expect my income to be fairly modest to begin with as I am retraining, but hope to increase as my experience does.  Ideally I'll be in a work place pension again, rather than freelance.
My husband has no pension and is self employed.  He is keen to get retirement planning underway as we have both already pushed our luck in terms of years not contributing. I am very risk averse and not great on financial stuff.  I am easily intimidated with it and terrified of doing it wrong, but I am keen not to keep putting it off.  I am 41 and he is 37.  Where would you start?  Can I still add to my nest pension with anything I may have spare, even though I'm not employed?  If I do get a workplace pension, can I still add to the nest to top up overall, or would I be better combining?  
My husband isn't keen on managing investing himself as he doesn't know anything about it.  Would nest be good for him?  Or should we engage some kind of financial advisor?  
If anyone has any words of wisdom, can link to any other similar threads, link to articles / websites, I'd be really grateful.  I'm determined to stop using a lack of knowledge as an excuse to hold us back and educate myself on how we can maximise different strands to stay financially sound through to retirement.
Thank you in advance and excuse the username from when I was first on here clearing debt many years ago.  I'm not very young or reckless any more!

OldMusicGuy

I'd start with this book: DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning by John Edwards. 

If you are not earning, you can contribute up to £2,880 into a pension each year which the government makes up to £3,600. You could add this to your Nest pension or start your own SIPP.

This may sound rude but you probably don't have enough invested to be of interest to a financial advisor. They take a %age of the funds you have invested every year, and if you don't have much they won't be interested. 

The first thing to do is to make sure you understand how pensions work and the choices you make about how the funds are invested within a pension. That book will explain it. The Pensions Advisory Service website also has a lot of good information.

xylophone

https://www.hl.co.uk/free-guides/self-employed-pension-guide?SQ_DESIGN_NAME=ppc&theSource=PCGSY&Override=1&adg=G+SIPP+SEP+E&gclid=EAIaIQobChMI8q7g26e_7wIVhbTtCh3XJwWaEAAYASAAEgIEWPD_BwE

Might be worth a read.

https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account might be worth a look - as a beginner perhaps consider the Target Retirement portfolio?

33scott

I would say try and read up on the subject as much as you can, 18 months ago I didn't know much about pensions but there are some great sources of free information out there.
It really is worth spending the time reading up, this forum itself is a great place to learn, I also found MeaningFull Money on YouTube was a good free source, he explains things clearly without being intimidating.

Croeso69

33scott said:

I would say try and read up on the subject as much as you can, 18 months ago I didn't know much about pensions but there are some great sources of free information out there.
It really is worth spending the time reading up, this forum itself is a great place to learn, I also found MeaningFull Money on YouTube was a good free source, he explains things clearly without being intimidating.

Yes, another thumbs up for www.Meaningfulmoney.tv 👍

dunstonh

I am easily intimidated with it and terrified of doing it wrong,

You are a mother.  You have done more intimidating and terrifying things in your life than pick a pension provider, simple investment and make sure you pay enough.    In other words, it is not intimidating.      

 I am very risk averse

The biggest risk is not doing anything.  The next biggest risk is not paying enough.   Third biggest risk is not taking enough investment risk.    Stick to the mainstream and make sure that there is as much in equities as you can handle and at your age than means more than half of it.   Investment risk with your timescale is not really a risk to worry about.    

Albermarle

All good advice above . Basically don't panic and start to learn . 
Just to answer a couple of specific points 
A NEST pension ( like all pensions ) contains investments within it . These are what bring the returns ( hopefully) not the pension itself. So it is important with NEST ( and all pensions ) that you look what different investments are available . So have a look on their website just out of interest at this early stage .
If I do get a workplace pension, can I still add to the nest to top up overall, or would I be better combining?  
The main priority is adding as much as possible . To which one is a more minor issue at this stage.
I am very risk averse
By taking no investment risk , you risk having a poor retirement .
There is a saying with some truth in it ' taking no risks is the riskiest thing you can do '

youngandreckless

Thank you so much everyone I really appreciate your time.  
You're also absolutely right, I don't know why I'm being such a wuss and will absolutely make it a priority to learn about pensions and personal finance overall.  I've made a start with research and also reached out to a money savvy friend as I remembered her boyfriend is extremely hot on all this.  He has given me some similar advice to you guys, including there's no need to pay anyone on our level of income etc.
I actually feel quite empowered in taking the first step and have written a list of financial goals to help focus my efforts.  I will absolutely look at the books and website recommended here.  A much needed kick up the bum, thanks everyone!

Albermarle

Couple of simple background articles about investing .
Long-term investing: Increasing your chances of positive returns (nutmeg.com)
Investing for beginners: Why do we invest? - Monevator
I remembered her boyfriend is extremely hot on all this.  He has given me some similar advice to you guys, including there's no need to pay anyone on our level of income etc.
Maybe you could ask him to contribute to this forum 

hugheskevi

I am 41 and he is 37.  Where would you start?

With Child Benefit. As you are not in employment, is the Child Benefit in your name to ensure you are getting National Insurance qualifying years? Does your partner earn more than £50,000 and so get Child Benefit reduced? If so, pensions can overcome that.

Next I would look at State Pension forecast for both of you, and check you are on course for a full State Pension - especially as you have not been in employment and your partner is self-employed it is important to ensure that you have been accruing qualifying years and are on course for full State Pensions.

Then I would consider the merits of:

• A Lifetime ISA for him (you are too old)
• Pension contributions for him, into a personal pension
  
• Pension contributions for you, into a personal pension

Can I still add to my nest pension with anything I may have spare, even though I'm not employed?

Yes - see this page. Note you will only get tax relief on the first £2,880 you put in (which would get grossed up to £3,600 with tax relief). Also note that NEST has a 1.8% contribution charge - not a big deal if you plan to have the pension with NEST for many years, but if you plan to transfer it out then putting more into NEST may not be best approach due to the contribution charge.

 If I do get a workplace pension, can I still add to the nest to top up overall, or would I be better combining? 

Yes, or you can transfer into the new workplace pension if you wish. Which is best depends on investments offered and how they meet your requirements, and the charges.

All pension schemes you are put in will have a default fund. That is designed to be about right for the typical person. It will always be okay, and the vast majority of people (80%+) just stay in that. You won't go too far wrong with the default fund, but if you want to learn more and take more interest in your pension, then other options are available in most pensions for both existing funds and new contributions.

So to summarise:

• Ensure Child Benefit is optimal - both in terms of ensuring it is not reduced and that you are getting National Insurance credits by being the claimant.
  
• Check your and your partner's State Pensions to see what your position is
• Decide on how much you can put into investment, based on what you think you need to save to provide for the retirement income you wish, and what you can afford.
  
• Decide whether a LISA for your partner or pension for either or both of you is most appropriate for your circumstances.
• Decide best provider, based on investment options and charges.
  

youngandreckless

Thank you very much for taking the time to list that out, I will certainly look at everything you've suggested.  State pensions are on track and I do claim the CB in order to keep up my contributions.

Albermale, it wouldn't surprise me if he isn't on here somewhere!  I'll check out that link thank you.