SAHM and pension

[Marroon]

I’m probably being unreasonable to ask here to begin with but if you’re a SAHM how are you saving for a pension?
Anything that’s a better or worse option from your perspective?

Anyone not earning can pay a maximum of £2880 into a SIPP per year. The Government will add FREE money up to £3600

Then there will be compound interest each year

I recommend doing this

The only downfall is that you cannot access the money until 55 or 57 depending on your age.

It was a while ago now but my then dh paid into a SIPP for me. I tell my girls now to only become sahms if they want to, are married, and husband pays an equal amount in to both pensions.

Great this is helpful.
Having it locked that long is almost better, I want to make sure it’s a back up pension option for me if something happened to DH or the marriage rather than anything that could be joint ‘savings’ used for other things down the line.

I saved into a pension for DW when she was a SAHM.

It’s not saving into a pension but my understanding is that you would still qualify for a state pension if receiving child benefit as a SAHM

SIPP are private pensions

Which you would have on top of your state pension

The alternative is to pay into a tax free ISA
These can be accessed anytime

Every individual should check their own record

https://www.gov.uk/check-national-insurance-record

Each individual should check this

https://www.gov.uk/check-state-pension

I made the mistake of not paying into a SIPP when a SAHM. DH would absolutely have contributed to it had we a clue about finances. Now I’m working again with a teaching pension I’m trying to make up lost time by contributing to a private SIPP.
Rebel Finance school is a very helpful short, free online course that equips people to take ownership of their own money. I wish I’d accessed it years ago. It’s on Facebook.

I pay into a SIPP, £2880 a year, which is topped up as mentioned above.

I also pay £4k into a LISA which is given a bonus of £1k. Invested into the same investments as my SIPP, accessible at age 60. Then I pay £16k into an ISA, which is also invested, and is tax-free on withdrawal.

I have some other money in investment accounts which aren't tax sheltered but I will use CG allowance to withdraw, and this is added to annually.

I have NI credits towards a state pension through child benefit credits (though don't get payment) and due to get a full pension (as I spread my child-bearing years out so I will get to the no. of years required by the time my youngest is 12.)

Well they can’t get an equal amount into a pension as that’s not possible. They could however have a stocks and shares ISA.

You can claim half of his pension on divorce. Life insurance is also a must.

I’m wanting to ensure I have more than state pension.

I know large assets would be split in a divorce but I would rather know I have a reasonable standard in retirement in my name from my previous workplace pension, and some form of private pension before possibly a further workplace pension down the line. This way I know what my minimum is if I was alone in retirement and avoids possible bitterness if a divorce happened in 2 decades feeling like I was going for “his” pension, plus it’s more security in the event of DH passing or reduced capacity for earnings down the line.

Do you claim CB for the NI credits?

SIPP as others have said, you can also open a LISA they have okay interest rates, once tou get to about £12,000 you would earn around 95p a day, then each year if you add £4,000 you receive £1,000 from the government.

Has your husband got a private pension, if so had he nominated you so some passes on to you if he dies.

I recently discovered I can continue paying into my previous workplace pension directly myself even though I no longer work for the company and haven't done for a number of years. So that is what I do. The government tops it up with tax relief automatically so for example if pay in £100, then £125 gets added to my invested pension pot.

We also have life insurance and income protection insurance for bereavement or reduced capacity of earnings, which we arranged through a financial planner and insurance broker. I really recommend speaking to one for peace of mind!

In most cases it would be bad advice to pay the same into both pensions, as the working parent will be massively under contributing to their pension given the £2,800 cap on contributions to a pension of someone with no earnings.

My husband cashed his pension in….

I had a Roth IRA going for him in his name the entire time he was a SAHD.
He liquidated it 12 years ago without telling me when we swapped and I became a SAHM. I have no idea where the money went. Would have been at least $150k when he cashed it in. He never put anything towards a private pension for me when I was SAHM. All I have was my workplace one that I left to grow.

Now he is divorcing me, says he has no money and is coming after half of mine. He waited until three weeks after I got the last bit of inheritance from my parents.

I feel like the victim of a very long con. I hope my lawyers can ensure I get a fair settlement.

That's a long of money you pay out when you aren't earning anything

Many couples view income as joint, particularly in respectful relationships.

So" we " then.Or " he". Not I

I make all those transfers from our joint account, so it's an action that I perform manually.

Not really, by that logic if “he” can make financial decisions surely “I” can too?

You can claim national insurance credits for caring for children under the age of 12 if you claim child benefit (this helps qualify for the state pension. https://www.gov.uk/national-insurance-credits/eligibility

One can claim NI credits even if over the CBenefit threshold.
I think it's been deliberately confused so the Govt saves money!!