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Pension for sahm? How would that work?

(13 Posts)
AndNowItsSeven Wed 13-Jul-16 13:17:13

I am a sahm and also disabled so unlikely I would ever work again. My dh works and I would receive half of his pension if he were to die plus life insurance.
I would like to set up my own pension but am clueless as to how to start. Is that even possible? Should I see an IFA and could anyone recommend one in the North West.

AndNowItsSeven Wed 13-Jul-16 13:35:50

Also would my money also be at risk or can the pot be guaranteed if it's saved rather than invested if that makes sense.

MsAdorabelleDearheartVonLipwig Wed 13-Jul-16 13:46:24

Speak to a financial advisor but yes of course you can have your own private pension, anyone can. It's a very sensible way of putting something aside for later.

AndNowItsSeven Wed 13-Jul-16 15:11:57

Thanks, what the best way to find a good IFA?

FinallyHere Wed 13-Jul-16 17:10:08

Pensions are generally 'a good thing' because you pay into them from gross pay, that is don't pay income tax on money going into a pension. You cannot take anything out til (you are older) not sure exactly when these days.

If you are not earning, then the tax advantages fall away. Other investments may be more flexible, as the money is not locked away for ages.

FinallyHere Wed 13-Jul-16 17:12:29

Finding a good IFA is not easy.

Lots of people who give recommendations don't actually know enough to say that they are good, they just mean that the IFA is easy to deal with.

Ive had a couple of bad experiences, where they recommended something which was not true ( eg needing to take out life insurance when taking out a mortgage, when i already had life insurance in place. I would live to find a good one, but do know know how.

Sunseed Wed 13-Jul-16 20:04:18

I am a financial adviser and based in the North West.

Anyone under age 75 can contribute up to £3,600 gross per annum into a pension and receive tax relief on that at basic rate, whether or not you are earning. So you put in up to £2,880 net and it is topped up with tax relief to maximum £3,600. You can put in more to the pension pot and it will benefit from the tax efficient growth environment but won't attract the initial tax relief if you have less than £3,600 earnings.

The pension wrapper is the tax efficient mechanism. What you actually invest into underneath depends on your attitude to risk and your capacity for loss. From what you've said you sound cautious. Even investing into cash carries investment risk in the form of inflation risk. There are different options to reduce different types of risk but ultimately, yes, in a personal pension you carry all the responsibility. One big advantage of using a financial adviser is that if they make a recommendation that you then rely on, they are taking on some of that burden of responsibility and you have recourse to complain if things go wrong.

AndNowItsSeven Wed 13-Jul-16 21:16:48

Thanks for the replies, Finally I want to have money locked away so I can't access it so I know it won't be dipped into. I am worried about not finding a good IFA.
Sunseed that's great to know that I will still receive tax relief even if I am not working. Yes you are right Inam very cautious I am not looking for a big return , I would be happy with interest of 3-4 %.
Whereabouts are you based Sunseed?

AndNowItsSeven Wed 13-Jul-16 22:11:16


Sunseed Wed 13-Jul-16 22:29:27

I've PM'd you.

CattyMcCatface Tue 19-Jul-16 19:47:07

Look on here for an advisor

CattyMcCatface Tue 19-Jul-16 19:49:03

Or maybe start here (they recommended to my husband

delilahbucket Fri 22-Jul-16 19:12:18

I don't have time to see an ifa but as a self employed person I needed a pension. I set one up with Virgin money. Cheap to run, had no problems with it. I can pay in extra whenever I want and I can stop payments without penalty whenever I want too.

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