Pensions for the SAHM. Any advice on what I should be looking for?

[FourJays]

Have been a SAHM for 6 years now. I do tiny little bits of p/t self employed work. Just started so I'm earning nothing.

I haven't paid into a pension for 7 years and as I'm approaching 40 I'm beginning to get a bit panicky. I'd like to start a pension but I haven't got a clue what I'm doing.

Have any other SAHMs had pensions whilst off work? What am I looking for?

Thanks

I'm a SAHM and I have a stakeholder pension. There's info on them here. The big advantage of a stakeholder is that if you don't earn then the government add to it. It's basically the same amount that earning people benefit from as they pay into their pension before tax. Hm, I hope that makes sense. I got mine from Friends Provident because it was the top recommended one from Which at the time.

Thank you so much. I'll look into stake holders.

Have a look at ISA's as well, the problem with pensions for me is that you do not know what the annuity rate is at the end consequently you may not get a very good return for your money. With ISA's when you retire you can put the fund into an income fund (or a pension if you so wish) which will pay you a tax free income unlike a pension income which is taxable.
However with a pension you do get tax relief on your contribution, by that I mean the Govt will add 20% to your contribution.

I agree BigGit, but the problem with ISAs is that the money is not ring-fenced, so you need an iron will not to take it out when times are hard. The gains will also be included when you are considered for benefits (like Child Tax Credit). Pensions do seem to be more "protected" by governments generally. As it happens, we are covering all our bases and doing both. But then we're pretty cautious.

Good advice Mrstittlemouse, you are doing the right thing. I would geberally never advise on putting all your eggs in one basket anyway and usually get people to consider homes (as you can downsize when you retire with no tax liability), ISA's and Pensions as their retirement options.