To ask for advice on what to do about no pension?

[Lolabear38]

Firstly, I know I’ve been incredibly stupid. I genuinely never imagined I would be in this position though.

Until I met DH, I always worked. Long story short I met him and he has a job that requires living overseas. For the first part of our relationship I worked also in whichever countries his job took us to, and contributed to a private pension plan I set up. This lasted around 8 years. Once we had children I gave up work (something we were and are both happy with) and no longer contributed to these. Now it’s got to the point where it’s more financially viable for me to stay at home than it is for me to return to work, at least until our youngest starts school.

However, this means I haven’t paid into any kind of pension since around 2013. Originally I had planned to have a child/ children and return to work and continue pension payments but as time wore on the plan changed. I also haven’t made voluntary NI contributions.

While currently my marriage is good, obviously I don’t know what the future holds and I’m starting to realise I’ve put myself in a stupid position. My husband and I own two houses (in two different countries). He has 3 pensions. When I’ve raised this with him he just says he will share his pensions with me, they’re for us both etc and anyway I’m entitled to half of both the houses should anything happen to our marriage. I’m planning on back paying my optional NI contributions (and I have until July 31 to make the most of these) but what else can I do to help myself out of this? I’m
not currently able to work due to local visa restrictions where we live but I hope to soon.

My husband is lovely but he doesn’t see why I’m so concerned about this and is a little blasé about it.

What else can I do to help myself plan for the future?

Ask if he can put your name on his pensions? Or can there be some kind of contract drawn up?

I don’t know the answer, but I was where you are and am now divorced with a pension black hole, having received only a small sum for the house as the bank still owned a lot of it. I asked what would happen if he died, but shied away from mentioning that I would be left high and dry if we split up. I wish I’d got something in writing while things were better between us.

Make sure you're the beneficiary on all his pensions and also he pays the voluntary NI contributions. If I understand correctly, you're abroad at the moment so obviously the laws wherever you are will affect what you can do, but in the UK you can contribute up to just under £3k pa into a pension even if you have no income, so not working is not a reason for nothing at all to be put into a pension in your own name.

Can you also make sure all family money goes into a joint account and some from that is paid into savings/investments in your name?

You're right to be concerned about the unknown and to not rely on your DH acting fairly should you separate, however unlikely this may seem.

A friend of mine is currently deep in the shit because her marriage has ended after nearly 3 decades of being a trailing spouse following her DHs career all over the world. And despite her DH being previously the most mild mannered, caring, fair minded person you could imagine, he's managed to hide a lot of their financial and property assets and despite a couple of decades of being a high earner, often tax free with housing paid for, he's claiming that they don't have a lot of money to divide up.

Friend is seeking legal advice but it's costing her a fortune and she's also struggling to afford to live as she's never been able to establish her own career due to many years of SAHM to their DC and only being able to do low paid work or, like you, not being allowed to work in some of the places they've lived in.

When I’ve raised this with him he just says he will share his pensions with me, they’re for us both etc and anyway I’m entitled to half of both the houses should anything happen to our marriage.

Just to point out, if you were to get divorced, his pensions are also assets that would be up for negotiation.

Can you get him to contribute to a private pension for you? Also get hin to pay voluntary Nis for you. If not, maybe insist on going back to work and re-establishing your career despite the effect that may have on his.

Good point actually about you possibly going back to work, if you want to and it will be worth it for 'career' reasons that is.

He currently has the luxury of being able to concentrate on his work and nothing else while you keep all the other plates spinning. He doesn't have to think about who looks after his DC when he works away because you do it. I bet you've also taken on a lot of the other mental load that comes with running a house, children's appointments etc?

What would he do if you said you were going to work and he had to do half of everything at home?

It might be worth having a discussion with him that this isn't just about if you were to split up. My parents remained happily married until my dad died but because my mum had no pension of her own when my dad died her income dropped dramatically as they lost his state pension and she only got half of his private pension.

I don’t know if this will apply if you are not a uk resident (may have to seek advice) but WRT to the NI credits, if you register for child benefit, even opting not to claim it, then you will continue to acquire qualifying years for NI credits until your youngest no longer receives it.

Again, depending on your age and status, you could contribute up to £4k a year into a LISA.

I would probably make a spreadsheet with your husband of all of your current assets (cash/stocks/property etc) and then non current assets like pensions. Update it regularly- monthly if possible. Then start doing some financial planning, or seek professional advice.

If you are say in your early to mid 40s then potentially you could work for another 20+ years, boosting your pension and NI credits.

Even if you are not working you can still open a private pension and pay in £2800 per year and receive 20% tax relief on top.

Have a look at nest pensions

You need to get advice specific to the country you're living in. I'm a sahm with a high earner husband, so we don't receive child benefit but I register for it and claim the NI credits so my state pension is covered without having to pay for NI contributions. I don't think you can do that if you're living overseas, but check the government website.

I contribute £2880 every year into my pension from our joint account, which the government tops up to £3600. Again, not sure if this can be done if not resident in the UK.

I pay £4000 into a stocks and shares LISA which is topped up by HMRC by £1000 so the same amount as if I was putting it into a pension if I was a basic rate tax payer. But I can only withdraw it at age 60 which is older than the age I could withdraw from a private pension, but withdrawals are tax free. You have to be under 40 to open a LISA but can contribute every year until age 50.

Then I pay £16000 into a stocks and shares ISA in my name which isn't topped up, but withdrawals are tax free and can be done at any age.

You can only open or contribute to an ISA if you're a UK resident though. There might be savings and pensions products that you could open in the country you're in, just like ISAs can be opened by UK residents even if not citizens. But you'd need to get advice specific to the country you're in, and also the impact of your visa status. Probably an expat board might help?

Open a SIPP or stakeholder pension with an insurance company in the U.K. Pay in monthly whatever you can afford. But check if you’re living abroad you’re allowed to do this; I also doubt you’d get the tax relief added by Govt to this if you’re living outside of the U.K. Book a chat online with a reputable U.K. financial adviser.

If you already have an old defined contribution pension pot in the U.K. from a previous job you could ring them and ask if you can start contributing to it again, but again if you’re abroad you may not get the tax relief - I don’t know.

You need 35 years working and paying NICs or getting your NICs through claiming benefits to get a full U.K. state pension- so, as you say, important to backfill that.

Where do you live? I got a personal pension going as SAHM in UK, great tax incentives for SAHPs, but I think it's residence-dependent to be eligible.