Pension for Homemaker and AVC for DB scheme member

R

Robo

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Details:
Wife full time Homemaker
2 children, 6 & 8
Husband DB shceme, Salary 64K, Bonus 5K, Company car.

Problem: Wife’s pension is limited to 15 years service of DB scheme plus near full state pension (Planned to have 20 plus contribution yearly average)

As I understand it, my wife has no income so PRSA or similar has no tax advantage. However is it worth going from SSIA PRSA to get 2.5K to up, and then leave PRSA until my wife earns enough to have a tax bill. Then pay into the PRSA those amounts which attract a tax break.

In addition is there any merit in me (the husband) using an AVC as much as I can, by taking advantage of my non personable benefits (Bonus and car). At retirement I can the transfer it to an ARF, which will be available to my wife and I when I am alive, and will pass to her if I die first.

I am trying to work around the lack of pension support for stay at home spouses. (I am aware of the Homemakers scheme) In my case I have disposable income that I would like to invest in a tax efficient manner to support my wife’s retirement. However I am not aware of a way to do this. It looks like the deck is stacked against the stay at home spouse.
 
Your thinking looks quite sound.

I would suggest that you'd only be advised to contribute to an AVC tp the extent that you'd receive higher rate relief. The conventional AAM wisdom is that you should be prepared to delay pension contributions if you believe it's likely that you'd get higher rate relief in the future while you'd only get lower rate relief now.

Make sure also that the worst you should do in terms of charges is 0%/1%.

I can't see the merit in rolling your wife's SSIA into a PRSA - she'd only be getting effective tax relief of 33%....if you put that money into your own AVC you'd get 41%.
 
Folks

Interesting post but I'd appreicate if anyone can explain what the "Homemakers Scheme" is? Thanks, apple1
 
Thank's for that info Clubman. this is something that I did not know. Is there any 1 website or information source where 1 can source a comprehensive list of what is or is not available through the State?
 
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