If you’re a long term SAHM

[Ebenezerpud]

What are your plans for pension/retirement?

I’ve been at home with Dd for 3 years, worked 17 years full time prior to having Dd (had her fairly later in life) plus 4 or so years part time whist in college/university.
I live abroad so don’t think child benefits pays into the system as it were in the U.K., so I’ve lost out on 3 years of contributing to a state pension.
I have 10 years of paying into a work pension also and own my own home. I’ve enjoyed being at home so much, but feel panicked at times that I’m not paying into my state pension, should I be worried?
Sahm’s what do you do? Are you worried?
Do you see it as just a short time out and it should make up for it when you go back to work or does your Dh pay into a pension fir you? What are the options?

You can get a state pension forecast online and it will tell you whether you can make additional payments to make up the years you’ve missed.

Sorry, few typos there

I had 2 dc’s when I was young and 2 dc’s when I was older from that I only need another 10 years NI contributions to get a full state pension,im not worrried,I might not live that long but on the plus side we own our own house,dh has a good work pension plus he saves into a moneybox one.I’m more worried about what happening now to be honest.

I'm sorry to say a family friend is looking like she will end up a bit stuffed on this front. She hadnt done much work before starting a family (spent a lot of years studying and had a couple of gap years along the way), and then her and DH divorced when their kids were in infant school. She was very reluctant to use any form of childcare and did a few min wage hours, made ends meet with a small amount of maintenance, housing benefit, child tax credit etc. She is now really really hard up now kids have left home, hasnt put anywhere near enough in pensions and is facing tough times.

I was a SAHM for 8 years. I found out after two of those years that I could apply for child benefit, however, because of my husband's wage I was only entitled to receive NI contributions as opposed to the cash as well so I applied for that for both of my children. I am now back working and am saving money in bonds initially whilst I work out what to do in respect of topping up a previous pension pot or starting an ISA or something. In hindsight, i should have had my husband put money aside for me each month. I am now playing catch up so all money I earn at present is mine to save to compensate for this

@OfstedOffred That’s a shame, but is a different situation? I’ve done 21 years total working so will need 14 more years I think?

@Fedupbuyer How old are you if you don’t mind me asking?
I should have 14 years left if it’s 35 years if paying in.

@Justnotsureaboutit2021 Do you mean out money aside for you and pay into a pension for you?
I’ve no idea what the average amount to pay into a state pension should be?

I haven’t been in paid work for many years. Everything is in joint names and I am the sole beneficiary of my husband’s insurance, death in service payment and pensions thereafter, should he pre-decease me. I have my own state pension which is just short of full.

I'm retraining so I can work around the kids more easily than my old career. I've been on here long enough to know I can't rely on DH as my only retirement plan, and he's a good egg.

my house is my main pension. I’ll sell it and move somewhere smaller. I have paid additional contributions so that I’ll get a state pension.

Please don't rely on the state pension alone. Pensioner poverty is defined as below £13-15k a year - the state pension isn't going to give you more than £10k.

Plus dh’s pension and various Isas.

You live abroad? You may be able to pay class 3 NI contributions, which will qualify you for a UK pension when you reach retirement age. I did it when I was a SAHM living abroad. It's not expensive either.

If in the UK ideally you would pay into a private pension (Stakeholder etc) for yourself and as someone else said top up your National Insurance Contributions as well. You can do these even if not in employment.
It is unwise to do nothing. Is there anything similar where you are living?

i haven't "worked" since 2003
i was a sahm from 2004-2012 and ive been a carer ever since and will be for a long time yet as first i was a carer from 8-16 for my oldest son whos 17 now.
now im a carer to my 11 y old and will be for many years yet.

im still a carer to my oldest as well but you can only claim carers allowance for 1 child, which ive always said is wrong
he still need 24/7 care and is on full pip till 2024 but as im a single mother theres a carers allowance claim no one can claim for

i think when your on carers allowance your weekly contributions are times 3 where as the normal sahm is only 1

someone else might come along and explain it better but this was something i was told years ago.

oh and im 41 btw

@Ebenezerpud I’m 42

You can backdate your contributions, it’s something like £14 a week. So go get your pension statement on gov website and then get in touch with hmrc to backdate. You can set up a direct debit going forward to pay NI.

For all the years I was a SAHM, my dh put my necessary contributions into my bank affiliated pension plan.

In UK you can have a sipp? Government tops it up.

Or an ISA

Never earned enough money to afford to pay into a private pension and not ever likely to. I’m hoping to get a state pension and DH will have paid off the mortgage. If he’s alive he’ll share his pension with me, if he’s dead I’ll hopefully get some of his pension fund. I’ll just have to live very frugally. Maybe I’ll still be capable of working and making a little bit of extra money into my 80s. If all else fails I can always kill myself. I’m not even kidding - that might be my only option if I can’t afford to survive. At the end of the day there’s no point worrying about it - I don’t have a pension and can’t afford one so there’s nothing I can do.

Please don't rely on the state pension alone.

This. It really isnt enough

@Donra, start by making sure your named as beneficiary. Make sure his pension option is joint life or at least learn about the options. If you plan on selling the house and releasing capital make sure it’s well maintained and up to date.
I’d be reviewing all the financials, going to the bank and starting a savings plan.

It's 39 years paying in to the UK state pension now. I wouldn't be surprised if that rises again in future along with the age at which you can access it. State pension is a pittance though, so you really want to think about how you can top it up. If you've paid into a workplace pension with employers contribution during your 21 years in work that's a good start, especially if it's public sector and/or defined benefits. If your family has cash to spare each month it's worth paying into a private pension or a lifetime isa whilst you are a sahm too. It might be worth sitting down with a financial advisor to look at what you've already got pension wise and how you could improve your future.

I'm not worried but I have planned. After years off I do work very part time now but not enough to pay income tax. I pay into a SIPP with vanguard and an investment LISA which the government tops up. I'm on track for full state pension. You really should check your state pension forecast to help you plan. You can pay often pay for missed years.