Prudential should I add to this or get a new pension

purple15

Thank you so much.
Our finances are shared.  should we put equal into two pensions, one each.  Or should we feed one pension more?

QrizB

purple15 said:

Thank you so much.
Our finances are shared.  should we put equal into two pensions, one each.  Or should we feed one pension more?

That's a slightly complicated question as the answer depends on both your current employment status, and your expected tax status once retired.

Being unwaged your wife can only pay £2880 a year into a pension (with £720 tax relief that makes £3600). With only a full State Pension, she should be able to get most of that back out, a little each year, without paying tax once she retires (or reaches state pension age).

You are self-employed and so your limit is higher (unless your earnings are less than £3600 a year) but, with an existing private pension, you're more likely to pay tax on some of your pension once you retire.

If you've got £500 a month to save, I'd suggest putting £240 a month (£2880 a year, the most you can) into your wife's pension and the rest into yours.

purple15

Thank you so much for all your advice.
I am going to make an appoinment with a financial advisor.