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If you are a SAHM - do you have a pension?

(23 Posts)
Bombus Fri 11-Sep-09 18:58:46

I'm a SAHM at the moment, and not earning. I set up a stakeholder pension with my bank about 5 yrs ago and pay £80 in a month. I have no idea if this is too little (although feel it probably is). My husband earns for both of us, but has only just set up his own pension, which is also a bit vague (he has just put a lump sum into a savings account).

Can I ask what others in similar positions are doing? Do you have joint pensions? Obviously the amount we pay in is all relative to earnings, but we are comfortable and I probably could afford to put more in if necessary. I just don't know if it is worth it in the long run. hmm

TheDMshouldbeRivened Fri 11-Sep-09 19:02:12

Nope. Been a sahm for 18 years and never paid into anything. DH doesn't have a pension either because he's never paid enough into any and now only works part time as he's a carer.

Alibabaandthe40nappies Fri 11-Sep-09 19:08:58

I set up my own stakeholder about 5 years ago and have paid into it ever since. DH has always had a good pension with his job.

Now that I'm a SAHM, we are still paying into my stakeholder. I will obviously share DH's income in retirement, but he will likely die before me (he is older than me) and I will only get 50% of his pension so I need to have my own pension as well. We will keep paying into it for as long as I am a SAHM, and then depending on what I do when I eventually go back to work, we will either keep paying into it, or I will pay into a company pension if one is available.

If you can afford it then do at least put money aside, into an ISA if nothing else. The sooner you start the better.

EldonAve Fri 11-Sep-09 19:12:33

I don't think you can have a joint pension

I have an old one from prior work and I currently pay into a stakeholder one.

You do get tax relief on the money you put in so you might want to increase your contributions

Do you get the child benefit it your name? That will give you home responsibilities protection which helps your state pension entitlement

Bombus Fri 11-Sep-09 19:37:59

Hi - thanks for your posts. Yes EldonAve - I do get child benefit in my name - that's good to know.

Does £80 sound a reasonable amount?

nickytwotimes Fri 11-Sep-09 19:40:57

I don't have one.
Tbh, I had crappy jobs anyway which wouldn't have provided any kind of company pension or provided enough dosh to put anything aside. DH is public sector so we will manage on his (hopefully!)

EldonAve Fri 11-Sep-09 19:48:34

If you have no income then the max you can pay in is £240 per month

Is your DH's pension actually a pension or just a regular savings account?

Bombus Fri 11-Sep-09 19:57:23

EldonAve - my husband pays into a SIP (had to ask him - am very ignorant about all this). blush

GoneCuckoo Fri 11-Sep-09 20:04:26

Yes I am.
No I don't.
DH has one with Scottish Widows.

boxroom Fri 11-Sep-09 21:29:20

Try this pension calculator here might be what you are after

TheDMshouldbeRivened Sat 12-Sep-09 07:55:09

am I right in think I'll get the basic state pension (£110) becasue of NI contributions via Child benefit?

EldonAve Sat 12-Sep-09 08:30:52

you can get them to send you a forecast
request a forecast

TheDMshouldbeRivened Sat 12-Sep-09 08:41:04

dunnit. I imagine it will be the basic state pension (50 something?) plus pension credit as I've never paid into anything. Just had child benefit related contributions for 18 years.
So it will be what my mum gets. £110 per week.

EldonAve Sat 12-Sep-09 08:49:15

they also give you National Insurance credits
if you've been receiving certain benefits, such as Carer's Allowance, Jobseeker's Allowance, Incapacity Benefit

scaryteacher Sun 13-Sep-09 18:06:56

With the credits from child benefit (known as home responsibilities protection), you need to be aware that the law is changing. From 2010, when your youngest child reaches 12, the credits towards your pension stop. So for me, ds is 14 next month, and this is the last financial year in which I will receive HRP, as from April 2010, he is over 12, and I am no longer entitled.

As I am abroad with the Armed Forces, I still get child benefit, but am stuffed as I don't work here, and even if I did, the social security contributions would not go to the UK. If I want to make up my 30 years for a full pension, I will have to pay voluntary NICs.

jellybeans Sun 13-Sep-09 18:13:16

Don't have my own but DH and me have joint one and have ISAs.

TheDMshouldbeRivened Sun 13-Sep-09 20:35:05

I think I'm resigned to being poor in old age. If dd lives we will continue to care for her but once we reach 65 Carers Aallowance stops and we get to do it for free. yaaaaaay.

Bombus Mon 14-Sep-09 10:10:21

Hi, I've been away so haven't been checking in, but thanks for the calculator Boxroom - will give it a go. Riven - that's really awful that the Carers Allowance stops at 65!

RedAction Mon 14-Sep-09 13:46:57

Message withdrawn at poster's request.

scaryteacher Tue 15-Sep-09 09:44:26

I think it has something to do with 'encouraging' women back into the workplace (paying taxes!!) when their youngest is 12. It also saves the govt money as we are then contributing to our NI in actual money rather than being given credits towards our pensions.

It may also be general savings as they have reduced the years needed for a full pension, but are paying it later (presumably in the hope you pop your clogs before you draw it).

It's going to cost me approx £600 per year to buy back the next couple of years, as we are abroad with HM Armed Forces and don't know when we'll be coming back. Even if we did come back there are no teaching jobs in my area (I looked yesterday).

bronze Tue 15-Sep-09 09:47:53

Neither of us have one. Dhs work insist he puts in a ridiculous minimum payment which we can't afford. We're looking at other options at the moment

meltedmarsbars Tue 15-Sep-09 09:49:51

Does it still stop at 12 if the child is severely disabled?

scaryteacher Tue 15-Sep-09 11:00:58

I think you get carers allowance which tops up your pension credits in that case.

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