Putting some of my savings into dh pension?

[Decorhate]

Are there any downsides to doing this? Dh has a small DC pension (as well as another) and as far as we can tell, you get a tax rebate added to the pot each year you contribute.

I've got a fixed term savings account maturing at the right time to use. The tax rebate would be far more than interest from an ISA. Any issues I should think of?

Thanks.

Downside is if you ever separate.

Open your own pension pot. Will get the same tax benefits.

You need to talk to a financial adviser, not mumsnet. I can see disadvantages...why not set up your own pension.

Why not into your own pension?

Use your pension pot
Unless you don’t have one?

Have you thought about a stocks and shares ISA instead of a cash ISA?

alternatively buy it in good gold coins as the value keeps going up and historically gold has excellent track record.

Both are exempt from capital gains tax in the future! (Only gold/silver coins, not bouillons)

Another vote for putting into your own pension or SIPP

Yes, for your DH there will be a tax rebate now - but when the pension is encashed later 75% of it will be (current rules) subject to tax at that point.

I’m finding in comparison, the Stocks and Shares ISA have performed and worked out better - longer term (speaking in my case only) than the SIPP.

I have my own pensions. Both DB. This is just a question re a savings lump sum.

I wouldn't do this in a million years

Another one who says put it in your own pension. You can take out a new, flexible pension alongside your DB one.
Why would you put it in someone else's name entirely? If you separate or he dies before you, you lose out.
And get proper financial advice.

Ha ha no.

I would never do this. Your own savings? I assume you keep mostly separate finances? Keep it that way. It doesn't matter that you have DB pensions, put it in your own pension or savings. Madness.

Open a SIPP and put it in there. The total amount added to your pension savings (including the extra 25% added by the gov and your DB pot) can’t be more than you have earned this year, or £60k.

Thanks all. I'll investigate opening my own SIPP. It just seemed a waste of dh's option to get a tax rebate (his savings are tied up at the moment). No plans to divorce!!

I'm planning to retire in a year or so and need to decide whether to take a lump sum or not so yes I am planning to see a financial adviser anyway.

But you also get a tax rebate. The only difference you would have on the rebate is what level of income tax you pay (higher rate) or if DH is on a salary sacrifice pension. But a few £ of extra tax reduction is unlikely to be the defining factor in your returns on a pension investment.
This may be different if your investment is huge (like over the £40k annual limit) but then I think the priority would be to look after you and not have that huge sum disappear if OH dies or you break up.

My husband did this. His pension is so much bigger than mine so for the last couple of years all his spare income was put into building up my pension. He sees us as a team, we’ve always had joint accounts (and I was a sahm for many years) He doesn’t think about what if we split in future - and surely if we did it would be split anyway.

If your ISA has performed better than your SIPP that will be because of different investment choices not because of the wrapper type (ISA/pension is just a wrapper)

Not in a gazillion million years. You would be mad to do this.
You might say "no plans to divorce" now but, looking around at family and friends who are divorced, 99% of them would have said the same a few years ago. Your money, your name, your protection for the future.

If you have a DB pension, it's a little tricky to your input amount - and therefore how much of your allowance you have left. Check your scheme documents or ask your pensions department to find out how to do the calculation.

Whether a SIPP is better than an ISA depends on your overall finances and current and future tax position.

If you have a DB pension,.you're probably in a public sector job that offers free pension and financial advice. Take it. Check your intranet for things like 'preparing for retirement' or 'pension planning' courses.

I'd use the savings for living and use my salary to top up my DB pension.
I put half my salary into my pension for 12 months prior to retiring.

Can you make Additional Voluntary Contributions to your current DB pension?

Have you checked your NI record, do you have any gaps?

Why don’t you contribute more to your own pension and get tax relief on that? Have you compared your pension with that of your DH?