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Pension advice for SAHM please? How do you split finances?

(2 Posts)
rubyblue Wed 24-Aug-11 19:43:49

Not sure if this is the right forum topic but we're just about to move for DH's new job and I'm giving up work. Tbh, am scared shitless about giving up my income, pension, status and financial independence - at least until I find another job. We've always had fairly separate finances - joint account for household and kids stuff into which we both pay each month but otherwise, our salaries are our own. After much ahem 'discussion' with DH, he has finally agreed that we need to share his income so that it's our own, rather than him giving me a handout each month, which made me feel like some 1950s housewife. But what about pension provision? What do SAHMs do about that if you're off for a while? I'm really careful about this stuff having seen my Mum struggle and be financially naive, especially about pensions. Any thoughts? How do you manage your finances?

CogitoErgoSometimes Sun 28-Aug-11 13:28:20

The only difference between the old and new you is that your income will be generated by your DH rather than from an employer. After that, like anyone else, you and your DH then need to work out what your old age is going to look like and how you'll finance it.

If your current pension is the portable stakeholder type, for example, you could agree that he contributes to it.... even if it's not as much as your former employer did. As there are tax advantages to pension contribs it's worth considering. Also tax related, you both have an annual tax-free ISA allowance so, if you have the spare cash, it makes sense to have ISA accounts in both names - and you build up a savings fund at the same time. In a similar vein, a colleague used to transfer shares to his SAH wife each year so that they could sell them and both use their CGT allowance. ie. Having a non taxpayer in the family can present opportunities and, depending on how much money is involved, it could be worth talking to an IFA to understand the options.

Finally.... applies to everyone but make sure wills and life insurance are up to date. One person stepping out of paid employment, even for a while, can make a family more vulnerable if disaster strikes. Having those measures in place can make it less stressful for the remaining wage-earner

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