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Original poster

DH needs to start a pension

56 replies

Cicadasounds · 16/12/2025 08:37

Self employed hand to mouth. Not financially literate. Either of us. He Is now saying that the global stock market is going to crash due to Trump so he doesn’t feel comfortable investing in a pension. I need him to focus on not having any pension provision. I have no idea what the stock market will do. We have DC to think about. Is there a calm, accessible online course he can do?

OP posts:
Original poster
Cicadasounds · 16/12/2025 08:41

We saw a IFA and have been recommended to a pensions advisor by them, but DH doesn’t want to go. I suspect there’s some ND in the mix but we are where we are I just need him to understand that he has to start quickly with doing something active and sensible. He’s 50.

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Meadowfinch · 16/12/2025 08:42

If he's that worried about the stock market, you could get him started with a cash isa which will allow him to save £48k tax free up to 2029, and also look at govt bonds until the world is rid of Trump.

At least then he will have something.

Lennonjingles · 16/12/2025 08:44

Is he paying Class 2 national insurance to get state pension. I don’t know about courses, but most pension providers will have advisors he can speak to, their websites are pretty good at explaining things.

Original poster
Cicadasounds · 16/12/2025 08:54

Thank you both. I feel so sick whenever I think about it.
Yes he is paying NI and I believe is up to date so he should have access to a state pension. His business had a wobble pre covid and then it stopped over the pandemic so he lived on the bounce back loan and is now restarted and focused on paying off that loan and not on preparing for the future.
I want to help him but I have a lot going on myself at the moment and am very financially undereducated myself. I don’t want to give him bad advice so I will suggest what you say just to make a start. Thanks very much for your suggestions.

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ThirdStorm · 16/12/2025 08:59

You can choose where your pension is invested, I'm with Scottish Widow and whilst I use their standard approach, I could pick whatever I want. I don't because I don't really understand it and I trust that they will put my money where it will grow best and then once I'm 7-10 years away from retirement they will start to de-risk it by investing more into bonds and cash.

I like what others have said, maybe start by saving into an ISA so there is something to top up state pension.

olderbutwiser · 16/12/2025 09:01

Do you work? Have you paid ni?

do you own your home?

ByQuaintAzureWasp · 16/12/2025 09:02

You both need a state pension forecast!

Original poster
Cicadasounds · 16/12/2025 09:03

Is this a widely held theory/expectation of a massive stock market crash coming or is he being influenced by extreme views online? He’s really one for doing a lot of research if he’s motivated so I feel like if I can just send him in a more practical less embattled direction that might be worth a try.

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Thundertoast · 16/12/2025 09:06

Have either of you had a look at the pensions sections on moneysavingexpert? Just thinking it might be a great place for you both to start off on a bit of financial education, its generally really well laid out and makes things simple to understand. It was so helpful to me when sorting out a mortgage.

jadoreyes · 16/12/2025 09:08

Bear in mind that he will get the tax back (at least 25%) on whatever he puts into a pension, so even if there is a crash (which there will be at some point) he may still be up. He also needs to think longer term- yes, in the 17 years between now and his SPA the market will go up and down, but overall the trend is up. It doesn't actually matter if he makes a paper loss tomorrow- he won't be selling so he can just wait it out. Time in the market is better than timing the market, as the saying is.

If this won't convince him, how about investing in something other than equities. He can hold a short term money market fund within a SIPP- these are safe as houses and return about 4%. So he'll get the tax back at at least 25% then 4% on top of that, with no meaningful risk at all. (NB no financial adviser will tell him to do this because the better thing to do would be to have a pretty high proportion of his pension in shares. But if it's a choice of this or no pension at all then this would be much better.)

Enrichetta · 16/12/2025 09:09

A stock market crash - or correction - may or may not happen. The whole point of investing in a pension is that you invest steadily, long term, so the ups and downs even out over time. Any book about pensions will tell you that, over a lifetime, stock market investments outperform other financial vehicles to a significant degree.

He is 50, so he has left it quite late, but he still has 15-20 years to ar least make up some ground. Not investing in a pension is throwing good money (tax relief) away. He’ll regret it if he doesn’t get started now.

But what about you - what’s your pension provision like? You know about putting your own oxygen mask on first…

Enrichetta · 16/12/2025 09:10

Vanguard Life Strategy is worth looking at if he/you are risk averse.

Minnowmeow · 16/12/2025 09:12

Who knows re crash, but it is widely reported that there is unlikely to be the financial gains that have been seen in the last 10 years.

However, with a SIPP you don’t have to invest in equity. If more cautious you can invest in Bonds or Gilts - which are lower risk (not no risk) but the gains will not be a huge amount and possibly won’t keep up with inflation but it’s something. You also get 20% basic tax relief (more of higher rate payer) so it’s worthwhile setting up a pension even for 17 years and paying in something. Do you have a pension? If not you can also open one and pay like £2880 and the government will
top up to £3600.

You could also open ISAs - again a Stocks and shares one I believe you can hold bonds / gilts or have a cash ISA holding and no tax paid on gains.

regardless of risk appetite unless you want to rely on the state pension, if you can you should be saving as much as possible.

Original poster
Cicadasounds · 16/12/2025 09:13

yes we own (mortgaged) home
I’m in an employed job with a pension scheme but part time for DC and health reasons so not going to be able to take on bigger role or go full time any time soon.

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Original poster
Cicadasounds · 16/12/2025 09:14

Thank you all so much. I am going to have to check in and come back later but I really appreciate your posts.

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kittywittyandpretty · 16/12/2025 09:15

The global stock market is not about to crash
There’s been numerous dips that have recovered, but frankly, if it did crash that would be the best time ever to set up a pension, The only way would be up

pandora206 · 16/12/2025 09:15

A simple way to think about pensions is that they are long term 'savings' that are locked away so you can't spend them. As a bonus, they are paid in from earnings before tax which would have to be paid otherwise.

Long term, markets go up and down, sometimes crash, but overall pension investments go up. And most important, what else are you going to live on after you retire? Getting state pension forecasts for both of you would be a good starting point.

Numberwangggg · 16/12/2025 09:19

There’s always a market crash coming but nobody knows when. The thing to focus on is that over the long period the market returns about 5 or 6% over inflation.

in

AwkwardPaws27 · 16/12/2025 09:23

A few things to consider if you really can't bring him around on the pension/ while you are working on him;

  • check all NI contributions are complete (very easy to check on HMRC app and you can top up previous years if needed - I think its for up to 6 years ago)
  • your home - owned or rented? Any mortgage left? Having no monthly housing costs (beyond maintenance) will make any pension you do get stretch further. You could consider downsizing when DC leave home / you retire to free up equity and reduce monthly running costs.
  • Has he ever been employed? Could there be any forgotten employer pensions from years ago (for either of you)? Track these down, even if its £50 a month it all adds up.
  • Is his business able to be sold as a going concern when he retires? What could he do in the interim to ensure it is / to maximise value? What processes need to be put in place (i.e. a really good digital filing system so he can find all the required paperwork when needed!).
Nevermind17 · 16/12/2025 09:31

You say he’s “hand to mouth” so I can’t see why it’s imperative for him to start a pension if he’s not going to be able to put anything in it. I’m no IFA but surely it’s only worth starting a pension in your 50s if you can chuck decent amounts in. If he puts a tenner a week in until retirement he’d probably only get a fiver a week back when he retires.

ConBatulations · 16/12/2025 09:36

Pension would be better for him than an ISA as he will get tax relief in the contribution. I would go for a life strategy or target retirement type of fund so there is not much management. Look for low charges. Also look at pound cost averaging. You can't predict a crash but once it happens he will be buying more units with the same investment.

Radiatorvalves · 16/12/2025 09:43

When Trump announced his mad tariff policy, my pension pot took a massive drive, but it’s bounced back up again. You need a medium - long term view with pensions. He’s chit 17 years to retirement, so I’d say he should go for it.

MsMcG · 16/12/2025 09:48

Good places for easy to digest knowledge on pensions and investing on Youtube:

Damien Talks Money (my favourite, very easy to follow)
Toby Newbatt (similar to Damien)
James Shack (a bit more complex but very knowledgeable)

The above are just sensible, straight talking and honest, not trying to sell you anything. They have videos from the basics up.

topcat2014 · 16/12/2025 10:02

Regular( ie monthly) payments help to smooth out shocks. We are all exposed to stock market in pensions unless public sector. He just needs to start, with a reputable company. Pay money in and don't look at it more than once a year. Otherwise madness lots

Sunseed · 16/12/2025 13:47

Are you able to add any more contributions to your own pension? Might he be more comfortable with that as a starting point?

Does he use an accountant? Might they be able to help nudge him in the right the direction?

It feels like he has jumped straight to the worst-case scenario of losing it all in a stock market crash without considering all the more positive in-between steps first. Every contribution he makes will attract tax relief, so boosting £100 to £125, or even more if he's a higher rate taxpayer. He can invest the money in risk-rated funds that range from the most cautious, cash-based ones, to balanced ones that have perhaps up to 40% exposure to equities, right up to the riskiest ones which have the highest levels of volatility but also the potential for the highest gains. In my experience most people are somewhere in the middle/balanced in terms of appetite for risk and capacity for loss. He should not take more risk than is necessary, but a small amount of risk is necessary for the funds to have a chance to grow in value to at least keep ahead of inflation over time.

I'm curious why your IFA was referring you on to a pensions adviser. Even if yours is a Defined Benefit plan then pensions advice is bread and butter for an IFA to deal with themselves.