Paying into a private pension for SAHM?

[PostHocErgoPropterHoc]

I turn 35 next month and feel it's about time I started making some kind of pension provision. I have nothing at all at the moment, even though I pestered DH into starting his at 25.

I'm currently a SAHM, I'm retraining soon but won't be earning for another 5 years.

Things have eased for us financially recently, and we're at the point where we can save (alongside paying off some debt on a 0% credit card).

I've always heard the sooner you start paying into your pension the better, but that conflicts with paying off debts first/building emergency savings.

Should we make starting a pension for me a priority?

As what you're really talking about is long-term saving/investment with a view to retirement planning, it could be worth talking to an IFA about the options. Pensions are one option and have various advantages but there are quite a few others that are worth considering.

It depends what your priorities are. Paying into a pension is good as the you don't pay tax on any money you put into your pension, but if there are more immediate issues such as debt, then get them sorted first!

Agree you should find a financial advisor and make an appt to discuss your situaion.

Thanks, I'll look into IFAs. The debt isn't costing us anything and we will be paying it off within a year, so I guess the choice would be between saving somewhere accessible vs. paying into a pension.

Actually, I wouldn't advise paying into a pension at this stage. The only real benefit of paying into a pension is that:

a) You get to defer tax (the income will be taxed when you take it as pension - usually at a lower rate); and

b) It puts the money where it can't be dipped into.

"a" doesn't really apply to you as you're not currently earning and to be honest, as long as you're disciplined "b" shouldn't really apply either.

In your circumastances, you're likely to be better off putting the cash into an ISA.

The only other option would be to increase DH's pension contributions as he would get some tax relief.

With no earnings you are very limited on the tax relief front. The maximum you can pay per tax year is £2880, which will turn into £3600 with the reclaimed tax relief.

still quite a good increase but the other poster's points are entirely valid.

but if you have debts and no emergency savings, those really must be dealt with first.

I'm a SAHM and was advised by my IFA to take out a stocks and shares ISA which will hopefully make enough money over the next 35 years for my pension. I was fortunate enough at the time to have a lump sum which I invested so I don't make any regular payments now.

fill up your annual cash ISA allowance every year FIRST
and pay down debt
then do shares ISA
only then commit money to the black hole that is a DC pension