Anyone without a pension? SAHM? What to do?

[Rebelwithallthecause]

The importance of pensions is stressed regularly

But if you are a SAHP without a pension how does that make you feel?
Or even if you are a part time worker with tiny contributions that you can’t afford to increase?

Do you have an alternative plan for retirement?
Does it cause any worry?

I've only just started paying into a pension at almost 40 and I need to top up my national insurance to get my full state pension. According to the private pension I'm only going to get a pittance and I doubt that there will be a state pension when I get to that age.
Honestly though, my Nan had to go in a home, at a cost of almost £200k(she paid roughly half) because she had a bit of money put away. If she had nothing then it would've been paid for. Almost makes you not want to have anything put away!

I can understand why you are worrying , but what can you do about it unless you have enough money to start a private one ? Are you a single sahp ?
Do you have a profession you plan to return to one day ? If you do , you can pay extra into a pension then if finances allow. How old are you ? If you returned to work eventually you could do the same. Also you don't have to retire at a set age nowadays so could do some form of paid employment once children are older.

I can’t do much I suppose

DH works but not in high paying job so his pension is just auto enrolment

I will return to work at some point but will be part time so not huge contributions and will be later start in life

Surely though you haven’t always been a sahm and won’t always be? You need 35 years of contributions for a state pension (you get 12 if you are claiming child benefit) So if you don’t have that, you won’t get a full state pension. You might still get pension credit depending on your circumstances though.

A pension is just a savings plan. A tax efficient one and one that your employer pays in to as well but where the money is locked away until retirement. If you can save a little bit each month whilst not working then every little helps. Make sure you are registered for child benefit even if your partner’s income is over the threshold as it should mean you get national insurance contributions for your time as a SAHP.

I will get full state pension
But previous jobs have been low and I didn’t have a pension when I was younger until they bought in auto enrolment

Have you worked for the 35 years required for state pension ? ( including child benefit contributions )

You will be getting State Pension contributions if Child Benefit is in your name.

You need to make sure that you are named as a beneficiary on your DH’s pension.

If you divorce his pension will be seen as part of the assets to be divided up. If you don’t, you will both need to live in his!

Because pensions are such a tax efficient way to save you can save a decent amount if you start work once the kids are in school.

I’m disabled and only worked for 12y before on benefits. My state pension will be about £45 a week according to them, Yipee! Yes I will get pension credits (if they still exist in 25y) but it is hard when everyone talks about plans and you know you will be on a pittance. Anything I manage to save will just be taking off me in income based benefits if I ever got more than £6k so very depressing.

@Akire Can you get around the 6k savings, but putting a tiny bit into a private pension so that you get an income later in life, or do they count Pension savings in the 6k?

Op for the time being at least open a sipp, I think... Minimum is 100.

Get it open, once it's there and set up, just add what you can. Look at low cost funds like vanguard, vanguard also do their own sips. What you put in the gov also adds to.
Something like.. Off top of head. You put 80 in, they put 20 in.

I'd say get one open ASAP.
Then look at opening up a stocks and shares isa when your back at work and set up small regular dd into both. Even 25 per month.

I have barely anything at the moment, I only just started paying in at age 28 and it's a tiny amount as I am on a low wage.

I own my house, my plan is to get my mortgage paid off so at least that is taken care of. My mortgage is small and I should have paid it off by the time I'm 50. Then I'll start whacking everything into my pension. I won't be able to retire until I get to state pension age, if there even is one by then.