Taking out a personal prnsion

[nNina22]

My 30 year old daughter is a sahm and not paying into a pension plan. She doesn’t claim any benefis at all as is supported by her dh but they are extremely hard up. Can she take out a personal pension plan or continue to contribute to the pension plan she had when she was working? I could afford to pay in £50 a month on her behalf until she starts working again. Could I do that?

Yes. She can put in up to £2,880 per year.

...which the government will make up to £3600.

Is there any difference if the OP pays into the daughter's pension, or gives the money to her to pay in herself?

Depends on what the work pension plan was. If it was a final salary one then no she can't contribute further. If it was a plan with Legal and General or similar then she probably can just call and ask for a direct debit form.

No there is no difference who pays the money in.

Thanks. It’s Legal and General 😁

They tend to be quite reasonable

Just call for a DD form, or they might have one to download in your daughters online account with them.

I'm in a similar situation, wanting to help my AC.
Should we consult a financial advisor? Or are we likely to be able to sort it out ourselves, getting info online etc?

My AC have no pension so far, btw.

Mxyzptlk

There are a lot of online brokers, all of which should allow your AC to open a self-invested personal pension (SIPP) with them.

We use one called Hargreaves Lansdown but they aren't particularly cheap fees-wise, there are lots of cheaper ones. All should offer a large range of funds to invest in. Maybe start by looking on money supermarket or such, for advise on online brokers offering ISAs and SIPPs.

If they offer ISAs they will normally offer a SIPP too, as you can have the same funds in both, its just the 'wrapper' which is different.

My advise would just be to drip money in monthly, to smooth the peaks and troughs of stock market, and select at least two different funds for diversification.

Thanks for your help, Sophiesdog11.