To ask for advice on savings

[slithytoveisascientist]

We are currently paying 6% into DH pension, employer is paying 3% - this has only recently started. I don't have one.

Both have up to date state pension contributions with 17 more years of payments needed.

Have a decent amount in premium bonds

Have 2 fixed term accounts earning 4% - we will move these when the fixed term ends on Nov.

We have about £400 spare per month after bills and luxuries.

Yes, I know we are very lucky

But we have no real future planning and are facing a huge retirement shortfall.

Where should we be putting our savings, what should we be putting in a pension, and what should we be doing for our kids?

was wondering if it makes more financial sense to pay more into DH pension and use it for both of us, as he is a higher rate taxpayer. If he dies before you the pension will stop, unless it has specific provision for a "widow's pension", usually at half rate.

Santander are doing an easy access savings account at 5.2% for 12months. You'd get a better return than the premium bonds.

If he dies before you the pension will stop, unless it has specific provision for a "widow's pension", usually at half rate.

It depends what type of pension he has.

A Defined Benefit pension (based on final or average salary) would work like this but if it is a Defined Contribution pension, then he is building up a pot of money to drawdown from when retired, or use to buy a set monthly income (annuity).

The pot of money will be passed on at death to whoever the DH nominates as his beneficiaries. Usually a spouse, but he could nominate his children!

Everyone should have their own pension, and this should be taught to every teenager in the country! Even a small amount per month invested in the early years will grow and give a private pension at retirement.

How much does he earn?

You’ll get pretty much 50% in the event of a divorce… house, assets and pension. And he’ll get 50% of your pension too, in those circumstances.

Pensions for both of you. Aim to put in half your age as contributions, so around 18% total inc govt tax relief and employer contributions in the case of your DH.

If you can’t afford that now remember it reduces your tax bill/goes out before tax so isn’t as much as you might think, or put in 10% each and build up when you have more money. You need your own.

Look at a basic stakeholder or SIPP with an insurance company. Read Money Saving Expert or see if you’re eligible to join Nest. You need one of your own.

Don’t prioritize saving for your DC when you don’t have a pension.

Agree with previous posters - you need your own pension. Building up your husbands and getting 'something in writing' that you'll get half if your relationship tanks will just not fly. You'll divorce and a financial agreement will be made.

You need your own. You'll get tax relief though appreciate your DH is a higher rate tax payer and you'll get CB back but someone made a good point about tax free allowance when claiming pension on retirement.

Dont prioritise your kids savings until your pension is sorted.

As a self employed person, there will be tax savings on pension contributions which is good, but no employer contributions. Although there are tax savings when you pay in, when it comes to drawing your pension, 25% is tax free, and the rest is taxed. If you put the money in a Stocks and shares isa, no tax relief when you put the money in, but no tax when you take it out. I don't know which is the best option, perhaps a FA could comment.

@Lincslady53 25% is tax free but then so it your annual allowance each year as you draw it down

As you are under 40 , you could definitely start a lifetime isa . Can't access until 60 but you pay £4K a year in and government adds £1k .

Can currently only pay in until 50 but I'm using this as a tax free pension of sorts with a nutmeg stocks and shares version that's weighted towards a fairly high level of risk / reward .

I prioritise maxing the £4K investment every tax year over other long term savings . Sadly DH was over 40 when it launched so he doesn't have one

You've got 30 years before you hit state pension age, you need to get your own pension started now if you want a comfortable retirement. Your husband's pension doesn't sound great either. His company only puts in 3%?

If you start with a stakeholder the management fees are capped and it is guaranteed free of exit penalty should you later decide to transfer. The provider will invest your contributions for you across a narrow but safe range of funds.

SIPPs can have high charges to reflect the management expertise needed for more complex assets, unless you are going to use all the features of a SIPP it is likely you are better off starting with a stakeholder plan. As you learn more and become more confident about the markets you could consider transferring to a SIPP and taking greater control when ready, or work with a stockbroker or IFA.

Please go and speak to a financial adviser. The internet cannot give you financial advice or advice on how to protect yourself in case of a divorce

Me and the missus are also 37/38 and have just started to really concentrate on saving the past few years.

Him being a higher rate taxpayer whilst you are not makes it more complicated. It is better to add as much as you can into his pension to get the extra 20% until it looks like he will be withdrawing it at 40% tax rates. However, you also need enough saved to at least take advantage of your £12k/yr tax free allowance.

Only 3%! Shocking isn't it. Not sure how to get it increased though, it's a small company