Pension

[Indigo911]

I’m self employed and 30 years old. Starting to panic a bit now that I haven’t saved into a pension yet.
Just been looking at Nest and I’ve worked out I can afford to pay in about £80 per month for the foreseeable future. I’m still going to be left with a fairly rubbish pension pot by the time I’m in my 60s, but I guess it’s better than burying my head in the sand and saving nothing.
Anyone else self employed and how much % of your earnings do you pay into a pension?

You should aim to save what any employee would receive. Both employers and employee contributions. 11% is really a minimum for your entire working life, but ideally I tell people 15% if they are starting later. (That's more than the legal required amount though)

It sounds a lot, but start with what you can afford and give yourself a pension rise until you hit the target.

Look at your budget and prioritise your pension as high as any other expense you have.

OP I'm also SE but 10 years older. I now contribute the maximum (i.e. everything I earn) and I also save from the joint income pot into an ISA.

However - I earn less than DH but i am rectifying years of low contributions whereas he has been saving a steady 10 pc for years.

This way we contribute via pension and me into an ISA roughly the same amount, seems fairest. I also look after the DC so that's rest of my 'contribution.'

If your DH is a higher rate tax payer felli do consider the tax saving he gets that you won't. If anything happens you can inherit his pension, plus if you divorce it can be split (not nice but reality). We're not sure the HR tax break will last forever

You're right don't call me- that's a good reminder, thank you.

Don't... does a spouse inherit a pension in the worst case scenario, in all cases? Does it depend on what age that person is when they die?

If someone directs a pension elsewhere (i.e. I leave my pension to my DSIS) this can still be overturned if there is dependency. It would of course be messy. Trustee discretion is vital for the tax free status of death benefits though.

If we are talking a Personal pension/SIPP/DC scheme then yes the spouse will inherit 100% unless there is a Lifetime allowance issues (>£1M). Tax is not due unless the spouse is 75 years or over. Then it's taxed as income. Otherwise it's tax free.

HOWEVER! How you take the money, the contract you are in, what your options are (Return of Fund, FAD) can be influenced by the contract. The law is one thing, the 'rules' are another. If you are putting a lot of money in, get a review from an IFA before you make any big decisions.