Pension.....any advice

[Kindnessandcourage]

Not an Aibu but need some help. I was wondering how to go about pension account for stay at home parent. These current times have got me worried so turning to you all for your suggestions.

Thank you Imaginetoday!will look it up

@Imaginetoday

They will only give you 20% if you are a basic rate tax payer. If OP is SAHM it is unlikely she’s earning over personal allowance to be taxed. In which case she gets no tax benefits.

Not quite true. She can put in £2880 per year and still receive the tax rebate, without earning a penny.

“Contributions are limited to £3,600 (£2,880 before 20% tax refund) or 100% of earned income (if higher).”

Thank you for the information !

If OP is SAHM it is unlikely she’s earning over personal allowance to be taxed. In which case she gets no tax benefits.

^^ when I was sahm I had a limit I could put in and could still get the top up. It was about 2700 ?

Brilliant
Thanks for advice

Following :)

There are many options.

1. Definitely claim child benefit ( even if it needs to be paid back by your DH in tax via self assessment) as this counts towards your years for state pension.
2. check if any gaps in state pension contributions that you can top up.
3. LISA if under 40 ( can pay in £4000 a year and government tops it up to £5000 total).
4. SIPP can pay up to £2880 ( even if not earning) and get 25% added (like LISA).

Government website will really help with claiming CB, checking NI contributions and checking what you can invest each year and claim tax back on ( even if not paying tax).

NB LISA counts towards your yearly allowed ISA amount.

I wouldn't actually get the child benefit paid (and then faff about via a tax return to give it back). But you still have to fill out the whole bloody form and at the end there is a box to tick which says "I don't actually want the money".

Everyone needs 35 years of National Insurance contributions to receive a state pension

Thank you for your brilliant suggestions!

I have been trying to apply for national insurance number but I am being signposted with no help. Can anyone please guide me where should I go to get an application form

@Imaginetoday you've got that totally wrong, the OP does get tax relief. Stop giving advise when you know nothing about it.

@Kindnessandcourage have you ever been in paid employment?

*advice not advise 🙄

No

Make sure you’re claiming child benefit (even if you have to pay it back if your DH earns over the threshold) as that keeps your national insurance contributions (NICs) going which gets you a state pension. You need 35 years of NICs for a full state pension entitlement in the U.K.

Secondly, do you have old workplace pensions? Look in to this and find out what’s in them (defined contribution) or how many years service (defined benefit) if you’ve been a public sector worker.

Money Saving Expert and The Money and Pensions Advice Service all have helpful pages on this. Please don’t bury your head in the sand about it. Also read the DWP webpages on pensions.

Anything you don’t understand ring The Pensions Advisory service or Citizens Advice.

Lastly, you can open a private pension - mostly through insurance companies like Legal and General, Aviva or Standard Life. Private pensions get tax relief from Government (tax back in to the pension) even if you don’t work (but only up to a few grand I think), so it’s worth doing. Anything you can save will be worth it. The private pensions take the form of SIPPs (you manage where your pension gets invested) or Stakeholder (the insurance companies do this for you but they charge you more for it).

Please seek proper advice and pay a financial advisor for a consultation (find a reputable one) if you can afford it.

Boom marking

OP how old are you?