Pension worries.

[SteveArnottsWaistcoat]

So at nearly 45 I’m starting to worry about my pension. I don’t have one. I’ve always been a SAHM. DH has a business snd there has NEVER been any spare money for saving. We have ploughed £1000s and £1000s into keeping the business going over the last 15 years. DH holds the purse strings. I only get a weekly “wage” of £300 which pays for 3DC, my personal bills, food, pets etc. I know it’s a lot of money but it just goes so fast. No benefits other than standard child benefit. I think I must pay NI on it.

I’m bothered now though, and worried about the future. DH fobs me off and tells me not to worry etc, but I’m now going to just try and do my own thing and crack on best I can to secure my own future but I just worry it’ll be a struggle to get anything sorted at this late stage.

I get incredibly overwhelmed by financial matters very easily, so I’m not sure where to start. Does anyone have any useful advice?

I really can’t afford legal fees to speak to anyone and I could probably afford maybe £10 or £20 a week at s push.

To be honest you have bigger things than a pension to worry about if you are expected to run a household and feed and support yourself and 3 kids on 300 a week. How much does he get ? He doesn't sound a kind supportive husband from the bit you have posted

Op does your dh have a pension?

Is it possible for you to plan towards getting a job?

It’s a bit late to start a pension in your 40s but not too late to build up a meaningful amount.

I'd start by having a read of the Which? Guide to Pensions and Martin Lewis' simple guide to Pensions. You are right to be concerned. The business has not been successful if all money has gone back into it leaving nothing for either of you to have a pension and your husband must know this isn't good enough and leaves you both vulnerable

Have you looked up your state pension forecast on the government website?

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

It’s also worth checking your national insurance contributions to see how many years of state pension you have built up.

You can make a shortfall for up to the last 6 years, which is seen as good value for money if you can afford it?

Child benefit will give you national insurance credits towards state pension.
If i were you I’d consider getting a job and saving all your wages to help towards your own pension.

Without an earned income you can put up to £2880 in to a pension per financial year and get tax relief added to that by Government.

Is the business generating enough profit? Can you do any work for the business so can be paid by the business directly?
Are your children getting more independent so you could apply for jobs?

If the business is organised as a company, which it may or may not be, and you are both directors then I believe there is complete flexibility in making pension payments from the company on your behalf. If that is relevant I would definitely discuss the possibility with your husband.

Hope you can start to sort something.

How old are the children? You will be credited with NI contributions towards your own state pension until they are 12 I think. I agree with others you need to think about starting work/ career as you have 35 years potentially of working life left.

You have approx 23 years until you reach state pension age
So if you become employed you can pay into a private pension

It’s not too late. Get a part time job and put all your wage into a pension. You’ve got 20 years of earning potential ahead of you.

Your DH is operating the 1950s housekeeping model, the business may be very profitable and he might be squirrelling thousands of pounds away in addition to building up a sizeable pension.
Educate yourself, ask questions and gauge his reactions.
Is the business operated as a Limited Company? if so check it out on Companies House.
Or is your DH a Sole Trader /Partnership?
might he already be paying you a wage and claiming it as a tax deductible expenses.
Maybe the company pays dividends to you both?
Perhaps you can test his reactions when say you are considering a part time job.

I live quite remotely and so job opportunity is pretty limited, although I have tried. Before the pandemic I applied for around 20 jobs that I could get to, but wasn’t successful for any of them. I will try again, but I know it’ll be hard to find anything permanent as it’s mainly temporary or seasonal around here. (Moving isn’t an option!)

DH doesn’t have a pension. His parents only have a state pension.

OP - don’t panic. The first thing you need to do is plan to make sure you get the full state pension.

Check your entitlement using the above link - I assume you had a job before DC and have been receiving child benefit in your name?

How old is the youngest DC - until they are 12 you should get years added to your state pension.

When you mention a ‘wage’ - are you legally employed in the business or is this effectively ‘housekeeping’? Do you get a payslip with NI contributions?

Once you know how many years contributions you have you can make a plan to get the remaining contributions.

If you take on temp or seasonal work it will be easier to get permanent work in the future.

You still have time to start a private pension or to build up savings to cushion you in retirement. It is best to use a pension to save as you can get the contributions on top. I started one about 12 yrs ago I think and I can only put in the minimum of 2880 and it is topped up by tax relief . I now have nearly 100 000 as I have a good financial adviser who had invested it well. So really it is well worth starting saving even small amounts.
Does your husband have any sort of a plan? Is he going to be able to sell the business to retire etc or is he just sticking his head in the sand ?

You're in a financially abusive relationship which is more of an issue. Assuming you are married, you'd get half the marital assets including the business if you split. I think you need a proper plan with 'D'H which starts with you having full access to all the money and not some sort of allowance.

And you need to go back to work asap. how old are the kids. Your DH is an idiot if he's made no pension provision.

I'm hearing over and over again that people are struggling to get vacancies filled. You really must get a job - even if your take home pay only covers childcare you'll still be paying into a pension.

It's not too late but don't leave it until you're 50!

You haven’t said what ages your dc are and any potential childcare issues. Plus do you have access to a car? DS GF had a job last year in her first year at uni being an order picker at night, she did two shifts a week. Maybe something like this, it would be get home, drop kids at schools and go to bed for a few hours. DS is working a night shift at a freight company at an airport, he is earning almost £15 ph. Night work is a bit dire but a couple of shifts may be doable plus they often have vacancies. Plus it is just anything for seeming more recent on your CV.

Is your DH one if those who won’t work for someone else and running a bit of a shit business that’s really a waste of time? Do you know much about it? My friend had no idea her DH business was doing badly until she lost her home.

You urgently need a job. I'm 40 and have been working for 20 years and am still concerned about my pension. You need to start making money and contributing to a pension. I can't believe your husband is working and still isn't contributing to a pension. That's going to bite him on the ass.

Why is the business not making any money? If it's just isn't viable, best you both get real jobs.

Is there any chance that your 'D'H could be squirrelling money away for himself

£300 is really a very low wage, for all the things you need to fund. Doesn't sound fair to me.

I think you need to do a bit of financial digging about your husband's business. Do you have access to the annual accounts for it to see what profit it makes? I know you say you've ploughed in a lot of money to keep it viable but you do sound as though you've been kept remote from it all. You say you're paid a 'wage', but are you a director of the company? I say this gently, but you are absolutely right to be worried about your pension and yes, the time to act is now. As others have said, get a state pension forecast first - to make sure you're on track there. Also if you're not a director of your husband's company I would be looking for a job if I were in your shoes. Then you can completely control your finances, pay National Insurance to secure your state pension and start pension contributions for a private pension. Sorry, it does sound a bit controlling that your husband just gives you £300 a week and doesn't seem to want you to be aware of all the finances. You have an absolute right to know where you are financially as a family.

Are you in the UK OP? It's just that your posts were in the middle of the night and so I wanted to check.

Start by being firmer with your DH and making clear you’d like to understand what pension provision THE FAMILY has. Don’t be fobbed off. This is crucial information.

Yes to checking your own NI record. Yes to considering going to work and paying into a pension.

And you need to re evaluate the family finances generally. It could well be you and DH need to see an adviser together, so you can get yourselves on best footing in these next crucial years.

Don’t delay and don’t be fobbed off with ‘I’m the one sorting through money stuff. Just relax’. Insist it’s vital you both understand….because of course it is. And if finances aren’t where they should be, you need to get involved in improving the situation.