37 year old DH has no pension

[FelicisWolf]

My 37 year old DH has gone from working in a low wage hospitality job where he barely got above minimum wage let alone a pension, to starting his own business about 3 years ago and still not putting money in a pension. I am 28 and have just started a job that puts money in a pension scheme. I know he needs to set up a pension, but how screwed is he? Also, what pensions do you recommend for a self-employed person?

Oh also, I don't know if it matters but we have no DC yet and aren't homeowners. The only way realistically in our current situation we will be able to buy a house is when we inherit any money from our DPs in 15-20 years time, sad but true. It just makes me worried that there's a potential he/we will get to retirement age with no pension and still have to pay rent/a mortgage!

It’s really hard when you’re self employed but I think the sooner he starts putting something away, the better. Even just a small amount each month is better than nothing. Maybe look up a financial advisor near you and get some professional advice?

He could open a SIPP (self invested pension plan). Talking with a Financial advisor is probably best. He could be investing any spare money now in a stocks and shares ISA though, as over time these will often give good returns.

Inheritance is 'if' not when. It may all go to a care home.

My DH is in a similar position. I set up a pension plan with NEST for him as self employed, I saw it recommended somewhere. I deal with all the finance and it seemed sensible to have something. We can't afford to put much in at the moment but better than nothing.
Alternative is a LISA, lifetime ISA so government top up by 25% and you can't touch the money until age 60 or something. I also opened him a stocks and shares one of those but haven't put money in it yet. I have a LISA for our house deposit as it can also be used for that, like the help to buy ISAs.

Alternative is a LISA, lifetime ISA so government top up by 25% and you can't touch the money until age 60 or something.

LISA is a good option if you are a basic rate tax payer.

HRTpayers get a greater benefit from putting money into a pension (40% tax saved rather than a 25% bonus)

As PP said there may be no inheritance if you parents need care so don't bank on it.

He needs to start a pension pot sooner rather than later and be trying to put a hefty amount away each month to make up for no pension contributions for the last 17 years

I'm a SAHM and opted for a Lifetime ISA. It's topped up by 25% by the government. The benefit for us over a pension is that the money can be accessed before 55 with a 25% charge (equates to losing the bonus plus a bit). There is no such mechanism to get cash out of a pension ever. Depends if you want that option or not I guess!

Also a higher rate taxpayer as PP said benefits more from a pension's tax relief than a LISA's bonus.