Partners pension

chicken234

Hi.  If my OH starts a private pension can I pay directly into it or do I have to give the money to them so that they can pay it in ?

sheslookinhot

I need to deposit to my SIPP using my own debit card. I cannot pay into my wife’s SIPP using this debit card.

I assume you realise that once the money has been paid into your partners SIPP, it is “theirs”.

dunstonh

chicken234 said:

Hi.  If my OH starts a private pension can I pay directly into it or do I have to give the money to them so that they can pay it in ?

It will vary with providers.    Some would treat it as a third party payment.   However, others will accept contributions from spouse or civil partner due to financial linking.    An unmarried couple, with one paying from their sole account is more likely to be treated as third party.   Easiest thing to do is pay the partner and let them pay it to the provider.

Albermarle

Of course the person whose SIPP it is can only claim tax relief based on their own earnings, wherever the source of the contributions.

So if they only earn say £5K , the max that can be added is £4K + £1K tax relief, regardless of the source of the money.

Marcon

chicken234 said:

Hi.  If my OH starts a private pension can I pay directly into it or do I have to give the money to them so that they can pay it in ?

Is there a reason why you'd want to pay it directly into your OH's pension - is it just a matter of simple convenience, or is there anything more in your mind when asking the question?

NlghtOwl

If you’re married then give them the money and they will pay it in, it’s all marital assets so it doesn’t matter. 

If you’re not married definitely don’t do this.

lisyloo

NlghtOwl said:

If you’re married then give them the money and they will pay it in, it’s all marital assets so it doesn’t matter. 

If you’re not married definitely don’t do this.

It does matter on 2 counts.

Firstly it cannot be taken until the death, age 55/57, or terminal illness of the partner.
This can cause issues in divorce cases especially when there is an age gap.

It also matter for tax purposes. As already mentioned the tax relief that is applicable is the partners not the contributors.

It would be good to know the reasons behind the question in case there are better ways of achieving the objective.

LHW99

Or use a joint account as the designated account, transfer the money into that, and pay into the pension from the joint account.

chicken234

Due to my OH not having much in a pension and me having a DB pension ( which will be more than the tax threshold)I am just trying to achieve more pension income without paying tax. Paying in to my OH pension directly is more for convenience 

xylophone

Paying in to my OH pension directly is more for convenience 

Just check with her pension provider if they are happy to accept third party contributions.