Private pension when not working

[worldwidetravel2017]

Currently im not working - dr signed me off - many health conditions, & high risk pregnancy

My partner doesnt earn loads but over 30k gross

Currently 100 gbp a month from his pay = into my private pension

Weve said we will up this amount when he gets promoted. ..

Hes very lucky in that his work triple his contribution to his - so if he pays in 131 gbp - he ends up with over 300 a month going in..

Ive never worked in corporate / never had an employer do this. .

I dont know much about private pensions
But even though its currently only 100 gbp a month - still worth it right ?

Yes it's absolutely still worth it. If your DH is putting £100 in, the government will put £20 in. That's a total of £1440 a year.

How old are you? If you're 30, that's 38 years of compound interest until you retire. That could be a pension pot of £357k if you assume an average 8% return a year, which is the historic average on a global tracker. That could give you an annual income of £16k a year. Plus state pension, you'd have £28k a year

Increase the amount as you're able to, but don't stop putting in just something.

Even though you're not working, the pension provider should be able to claim tax relief on that contribution, so £100 goes in and the tax man puts £25 in a few weeks later.

Definitely worth it.

You can put up to £3600 gross per year in as a non-taxpayer - so that's £2880 in cash and £720 in tax relief.

For clarity, given that @TwoFatDucklings and I cross posted with different sums, the current rate of tax relief is 20% (basic income tax rate) on the pre-tax contribution. That's 25% of the post-tax contribution.

Thank you.

I will ring the provider next week to chat

My partner started giving me this last month but atm its just in a savings acc of mine as was guna transfer every 3 months or such

Isn’t it better he puts the £100 into his pension?

Im 38 - 39 in a bit.

I have some little other pensions

And i paid 3 or 4k a few years back to fill up some ni years where id been travelling

Cos he’ll get a higher contribution from his employer doesn’t make sense to put into your’s

He pays approx 130 a month into his every month anyway

We arent married
Id like my bit in my name 4 my security

I get ni credits atm due to gov payments i currently get due to disability and health stuff

Why not get married? That will offer you more financial security. Personally I think he's a bit crazy to be contributing to the pension of someone he is not married to.

His parents got divorced when he was a teen...

He has a lot of strong feelings / thoughts / hurt re it all ..

Hes contributing to his partners ( me ) pension ... ( & also the mother of his child ) ...

Part of being a team = he gets 8 weeks paid paternity and his work offers flexible working but ultimately - i wont be working for first 9 months of babies life - whilst im off work ( mainly due to high risk pregnancy) - and given the baby will be a big focus of mine when he returns to work after paternity - part of being a team is that he contributes to my private pension whilst im not working

Get married - forget the emotion. On finances you gain more by putting into his pension.

Marriage has never been something hes wanted with anyone
( due to how,nasty things got between his parents & various other things )

He is an only child and will inherit

My parents have a financial advisor and il also inherit etc.

I have some money i inherited saved - i believe you should always have an f of* fund just incase its ever needed

Do you? Even if that person is taking a financial hit and raising his child?

Exactly - as he says - im not ' only ' his partner
But also the mother of his child

Hes very happy to contribute to my private pension

The best financial security for you and your child would be to enter a civil partnership or marriage, especially as you are not working. It could get very messy financially if you split with your partner.

As you are under 40, not a HR taxpayer and paying in £100 pm, you should consider a LISA rather than a pension.

Ah yeah.. thats wise as gov then adds to it ..

Lots to consider

I’d have a proper think here together tbh.

Putting £100 into your pension to get £125 when you could put that £100 into his and get £300 is madness really, and not great financial planning if you are actually partners & a team.

If they were married and if the DP's matched contributions aren't capped then yes but since they aren't married it makes sense for @worldwidetravel2017 to have her own pension. It's far better for her to have some of her own small pension than to have none of his larger pension if the relationship goes tits up. Her DP is very decent and sensible to provide for her in this way, although the most sensible thing would be to get married to provide stability for their child(ren).

Literally makes no sense, it’s like giving away £200 of cash a month , more if you think about what it could make..

Would he go for a civil partnership? That is available for straight couples now and gives same benefits of marriage. I agree with this would be massively beneficial.

Govt also add to private pensions - it’s called tax relief. Don’t listen to PP who recommend a LISA, if it’s a cash one the value gets eroded. You need a private pension from a company such as Aviva, L&G, Aegon etc where your DP puts in your £100 per month (not every 3 months). Up this amount as soon as affordable.

Your point about buying more NICs to fill your state pension is good, but separate to private pension. Remember, to get a full state pension you have to work or be in receipt of certain benefits for 35 years. Make sure you claim child benefit and I really would urge you to speak to your DP again about marriage.

@HeyThereDelila Don’t listen to PP who recommend a LISA, if it’s a cash one the value gets eroded.

I thought it was implicitly understood that I was referring to a S&S LISA rather than a cash one. But to be explicit, of course I wasn't suggesting a cash LISA.