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Your views on this please

(12 Posts)
Howdoyoulive33 Thu 05-May-16 22:59:30

If any of you were/are a SAHM. Did your husband pay as much into your pension as his?

Or if your husband is a much higher earner than you does he top up what goes into yours so it is equal?

Sorry if this is a boring post but need to know what the norm is!

Iflyaway Thu 05-May-16 23:02:37

It's not about the "norm". It's what you are comfortable with. I guess you are not from your post.

Time to get wise I would say.

Iflyaway Thu 05-May-16 23:05:29

P.S. I am a LP and would never rely on a relationship, past or present, to "fix" my pension... that way foolishness lies.

Howdoyoulive33 Thu 05-May-16 23:07:01

Thank you, but it's good to get a general feel to how others live to see what's normal and what's not.

chocolatemuppet Thu 05-May-16 23:08:30

My husband didn't. But then pretty much everything was shared so no division of finance. Then we split up! He has promised he will pay half of the shortfall however, when he's s bit better off financially. He's generally pretty true to his word - though not sure I'll pursue it.

As previously said, it's just a question of what you're happy with.

Howdoyoulive33 Thu 05-May-16 23:18:24

I was a SAHM ( longer than intended due to health problems with one of my children). I have now gone back to work but my DH is a high earner and I never will catch up salary wise now ( we were both graduates).
I was blinded by exhaustion when the kids were young and never asked all the important questions. I have just found his company is paying a huge amount per month into his pension and he is adding extra as well!
I could go on but really just wanted views on what you do on this or we will be here all week!?

SleepingTiger Thu 05-May-16 23:21:19

It would be daft not to pay the bare minimum of £2880 per annum into one for you. Government tops it up with £720 even if you aren't a taxpayer. You both need to use your £12,000 annual allowance when retired and you can do this by equalising your private pensions.

Cabrinha Thu 05-May-16 23:22:31

I don't know what the norm is, and I'm not a SAHM.
However, my fiancé is the lower earner and if he were a non earning SAHD then no, I wouldn't equalise our pension payments.

1. I have a company defined benefits pension so it's not comparable - benefits outweigh my contribution so I actually couldn't afford to match it via a private pension for him

2. I also have a private pension which is tax efficient because I get 20% tax relief at source and then claim a further 20% via HMRC as I'm a HRT payer. A non earning SAHP wouldn't attract anything like as much tax relief - it's a financial no brainer to pay into mine, not his

3. I would make sure his contributions for state pension were paid

4. This is why pensions are an asset declared during divorce. I would pay into mine only, but fully expect him to make a claim on it if we split

Cabrinha Thu 05-May-16 23:25:19

Good point SleepingTiger about using both annual allowances in retirement!

Howdoyoulive33 Fri 06-May-16 06:34:06

Thanks tiger.

SleepingTiger Fri 06-May-16 07:35:50

Remember to tell husband you would get an immediate 25% return (£720/£2880 = 25%) and you can tailor the drawdown each year so that the state pension and drawdown fall within the personal tax allowance so HMRC will not tax it and you get to keep it all. If you exceed the personal allowance in any year, the excess only is taxed at 20%. Its also good to have your own pension.

Howdoyoulive33 Fri 06-May-16 08:03:08

Thank you.

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