Best Pension for Housewife

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MotherOf3
MotherOf3 Posts: 7 Forumite
in Pensions, annuities & retirement planning
Hi All

I'm concerned that I've not been paying into a pension for a number of years after staying at home to look after our 3 children.

I would like to know what the best personal pension option is for me - please can you advise?

Andrea
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  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    I would like to know what the best personal pension option is for me - please can you advise?

    All of the retail pensions meet the required criteria you have given.

    If you want to expand a bit on what you are looking for in a pension, it may help narrow the options a bit.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 44,413 Forumite
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    Are you currently employed and a member of a workplace pension scheme?
  • MotherOf3
    MotherOf3 Posts: 7 Forumite
    edited 17 October 2018 at 11:40PM
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    I'm a full time mother and do not have paid employment. I would still like to pay into a pension and therefore would like to know which products would be suitable for me.

    I only have a LGPS pension from working for the local council for 4 years. I don't believe that I can pay into this whist I am not working for them.
  • xylophone
    xylophone Posts: 44,413 Forumite
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    I only have a LGPS pension from working for the local council for 4 years. I don't believe that I can pay into this whist I am not working for them.

    That is the case.
    I'm a full time mother and do not have paid employment.

    As you have no relevant earnings, you are limited as to the amount that you can contribute to a pension and receive tax relief.

    You can pay up to £2880 per tax year into a personal pension/stakeholder and receive tax relief of £720.

    https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

    might suit.
  • FatherAbraham
    FatherAbraham Posts: 1,024 Forumite
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    edited 19 October 2018 at 8:20AM
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    MotherOf3 wrote: »
    I'm a full time mother and do not have paid employment. I would still like to pay into a pension and therefore would like to know which products would be suitable for me.

    I only have a LGPS pension from working for the local council for 4 years. I don't believe that I can pay into this whist I am not working for them.

    If you are currently not earning, you don't actually need a pension - pensions contribution is just a way of deferring income tax. As a 0% tax-payer, you could look at an investment ISA to store your long-term, future-income-generating assets in.

    However, as a special concession, it's possible for UK residents without any taxable income to pay in up to £3600 gross into a personalpension fund - that is, a (nett) payment of £2880 turns into a pension contribution of £3600 gross inside the pension fund. This can be advantageous, since 25% of your pension fund will be exempt from income taxation.
    Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...
    THE WAY TO WEALTH, Benjamin Franklin, 1758 AD
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    MotherOf3 wrote: »
    I'm concerned that I've not been paying into a pension for a number of years after staying at home to look after our 3 children.

    I would like to know what the best personal pension option is for me - please can you advise?

    How old are you? At what age will your LGPS pension begin?
    Free the dunston one next time too.
  • Triumph13
    Triumph13 Posts: 1,730 Forumite
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    Is your partner a 40% tax payer? If so then, so long as they remain below the LTA and won't be a 40% payer in retirement, it may be more efficient to make any additional pension contributions in their name rather than yours - even if you will have unused personal allowance. It's important to take a holistic view.
  • MotherOf3
    MotherOf3 Posts: 7 Forumite
    edited 22 October 2018 at 7:21PM
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    My husband is a Higher Rate tax payer - but unlikely to go above that.I'm not sure if you're advising that we should pay extra into his pension or not? How would we guarantee that this pension was paid to me if something should happen to him?
    kidmugsy wrote: »
    How old are you? At what age will your LGPS pension begin?
    I am 45 this year. I expect my pension to start in 20 years + whatever the government adds on to retirement age.
    FatherAbraham wrote: »
    If you are currently not earning, you don't actually need a pension - pensions contribution is just a way of deferring income tax. As a 0% tax-payer, you could look at an investment ISA to store your long-term, future-income-generating assets in.
    Would this be transferrable to my husband or children if anything were to happen to me? Can they become beneficiaries?


    Kind regards
    MotherOf3
  • xylophone
    xylophone Posts: 44,413 Forumite
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    My husband is a Higher Rate tax payer - but unlikely to go above that.I'm not sure if you're advising that we should pay extra into his pension or not? How would we guarantee that this pension was paid to me if something should happen to him?

    Does your husband have a Defined Benefit Pension?

    These schemes normally provide a widow's pension and provision for child dependants.

    Example

    https://www.lgpsmember.org/arm/already-member-prot.php

    The member should also complete an expression of wishes form in respect of the death grant.

    If he has a DC scheme he should advise the provider that you are his beneficiary.

    The administrator usually asks the member to complete a form with details.
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    I am 45 this year. I expect my pension to start in 20 years + whatever the government adds on to retirement age.

    Your state pension age hasnt been 65 for a long time. It is currently 67 with an expectation of 68.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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