Pension for life-long SAHP

[LindorDoubleChoc]

What happens when you reach retirement age if you have always been a stay at home parent and your partner retires and doesn't have the income to sustain two people?

Quite niche - but we were talking about relatives of our inlaws where the wife SAH forever, the husband had an above average paying job and reasonable pension I guess (but by no means flashy or wealthy). Now he's retired and not working so will receive state pension and his company pension.

What is the SAHP entitled to in terms of state pension? Are they now better off than when they weren't working? Is it means tested in terms of family income?

Assuming they made sure their NI credits were paid, and if a SAHP prior to 2010 they can claim a Home Responsibility Protection which reduces the number of contributions, they would still get some pension. This can be topped up with pension credit, which you can also claim if you aren’t entitled to a State Pension.

This would not even come close to the amount a person can accrue by paying even small amounts into a personal pension. Any couple who let this situation arise without contemplating pension planning would be very foolish.

Do they have savings, like an ISA? Did they pay into a pension before having kids?

Not really the point I know but a SAHP has young children to look after. It's impossible to be a SAHP for one's whole adult life. For some of that, before and after having young kids, they're just an unemployed adult.

The government pay NI contributions for any years in which you have under 18 year olds living with you. In other years you would need to pay voluntary NI contributions from the working partners income. If not then you would still get a state pension at your normal pension age but it would not be the full rate if you hadn’t contributed the full number of NI years. You. An check your NI contributions
record online.

Well they get pension credits for each child up to the age of 12, so if they have 3 children between ages 20-12 they will have 20 qualifying years.

Add on to that the years before children where they worked, say 10.

That’s 30 qualifying years. You need 35 for full state pension so they will get 6/7ths

They can also pay in for missing years if they want. It may be financially beneficial, depends how long they I’ve after pension age.

And no state pension is not means tested it’s based on individual contributions.

Assume they weren’t so dumb to put child benefit in husband’s name?

Don’t know then you would have to ask them.

It's really difficult to be a SAHP ALL your working life. Most people have a period of adult life before and after they have DC when they could work.

Presumably your relative ensured she was credited for NI when her children were small?

The SAHP can apply for details of what their state pension will be at the age of 67.

If he's had an above average income (unless they've had 3+ children), mortgage should be paid off and savings in the bank, and pension should be enough to pay all the bills before state pension kicks in (unless they live extravagantly).

Putting aside my personal details, DH had an average income and retired at 58. I only work one day a week now. Mortgage paid off, savings which we haven't touched. Our income is £2200pm, all bills, groceries, breaks, gym, diy things, eating out, coffee out, day trips covered by that with a little left over. Savings will cover any household emergencies/possible improvements before 67, but if we need to dip that's fine, as we'll certainly have excess money from 67.

I believe housewife is the appropriate term. Unemployed, while accurate, has implications that they would prefer or should be employed. They are supported by their husband not the state so are a housewife.

Sorry, I'm not sure if I was being clear. We were just speculating about what her pension is.

This is a person born in 1946 who stopped working in 1970 and was a SAHP after that with no further employment.

So this person was a stay at home parent for 40 years? How many kids and how old?

Yes, SAHP from 1970 to 1994. Then unemployed adult until "retirement" in 2006.

I'm just curious about what they've been living on tbh.

You can get a pension projection from the DWP. I think online

No, SAHP was wrong my bad!

SAHP for 24 years then unemployed.

This was much more common in that generation.
My aunt was born in 1945 and she worked until her 1st child was born in 1970 then never worked again. When she was in her 50s she looked after her grandchildren.
Mens pension contributions used to also provide a pension of some sort for their wives

I've been a sahm most of my married life and have no plans to return to work. I'm on track to receive a full state pension. I received free NI credits for age 16-18, had a few years of paid work, then started my family young. I got NI credits for any child under 16 (that has been reduced to age 12 now, but for your relative's dc it was probably 16). I also had some years of carer's allowance, then I had further dcs later in life. The age of the youngest means that I will have enough credits for a full state pension without needing to work or pay any voluntary NI. So it would depend on age gaps, the person's age, and other NI credits (they might have been able to get NI credits for claiming ESA even if their DH had a ft job). Personally, I also have a SIPP and ISAs which I contributed to every year too. But it depends on having enough household income to pay into it, which they might not have had on an average wage.

The government pay NI contributions for any years in which you have under 18 year olds living with you.

You mean taxpayers.

My mum stopped work aged 40 when she had me, my brother was aged 8. She had 12 years working full time before becoming a mum, then 16 years NI credits because of child benefit for my brother and also some NI from working part time, and then once he was 16 she had another 8 years NI credits for me until I reached 16. So that's 24 years NI from child benefit and 12 years from working.

So your relative could have had well spaced children plus she would have had NI credits if she claimed unemployment benefits. But to answer your question I think people who don't qualify for full state pension get pension credit but I don't think it's quite as much as state pension.

He dh might have a good occupational pension but if he predeceases her, she’d be entitled to the spousal element - which could well be a fraction of what he gets. Very unwise to not have decent provision

My Mum was born 1941, and I think gave up work when she married in 1964. Worked a little since, but not enough to make contributions. From this month her state pension is £191pw. No personal pension. She generally lives on this, but major bills like a new boiler, roof repair, large gas bill have come out of savings/policies passed from my Dad's estate £70k in 1996 - most was put in an annuity, now worth £130K.

If people are on a low income they might be entitled to pension credit.
https://www.gov.uk/pension-credit

I feel a bit like this too. She (the woman in op's story) made the choice not to work and to rely on her husband instead. So she should continue to rely on her husband in my opinion and not the contributions of others who did choose to work.

Same, a getting bored now with the “gosh! Hardly any women in the 1970/80/90s worked! Of course it was standard to be a SAHP in those days!”…

She might have paid voluntary contributions. I lived overseas for 25 years and paid NI to ensure I would get a full state pension.

It’s the governments decision to have pension credits available to SAHP. Don’t be angry at individuals

Absolutely I'm mostly annoyed at the system but also a bit judgy of the individuals too. I don't think I'm alone in that