# Stay at Home Mother and  pension



## Samantha (15 Apr 2005)

I will not be able to afford to work anymore after the birth of the twins, Childcare for 3 kids  will be higher than my wages therefore I have no choice than stop working.  I have a personnal pension plan but according to my policy, my pension need to stop as you need to pay income taxes in order to hold a pension ! I can still make the monthly payment for my pension so I think it is unfair than I cannot hold a pension. Is there any around it ?
Thank for you advise


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## Alan Moore (15 Apr 2005)

*Re: SAHM + pension*

Would it be wise to pay into a personal pension. You would get no tax relief on the contributions and possibly pay tax on the benefits on retirement. You may be better saving your excess money with a view to putting it into a pension if and when you rejoin the workforce and are subject to tax again, therefore getting relief on the same further down the road.


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## ObiwanKenobi (15 Apr 2005)

Surely there would be tax relief on the contributions if Samantha was jointly assessed, assuming she is married?


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## Samantha (15 Apr 2005)

Yes, I am married.
And I really would like to keep my contributions to my pension, I don't think it is fair that I need to stop because I am going to be stay at home mom (Childminders are quoting me EUR 400 per week to mind the twins and the 2 year old - South East area - very dear when you think that the 2 years old will start Montessori school in Septembre which is another EUR 50.00 a week) therefore it would be around EUR 1800 in childcare/montessori and my wages is around this amount so better for me to stay at home if working doesn't bring me financially better). I did rang my pension company which clearly stated that the contribution must stop until i am back paying income tax. They couldn't help me more, I check the  website but same it seems that only working people are allowed to have a pension.

I like ObiwanKenobi answer, I guess I need to ring the tax office to have an answer but in the meantime if someone knows the solution, please post it


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## Conan (15 Apr 2005)

To contribute to a Personal Pension you must have a source of Relevant Earnings. Since you will stop earning on becoming a full-time mom, you cannot continue to contribute to the Pension. In addition since you would get no tax-relief on such contributions (having no income), it would not make sense to do so.
If you have cash available you are better off investing in some savings product (where tax relief is not applicable but equally where the growth is only liable to 23% tax).
Being jointly assessed is not relevant. You cannot claim tax relief of your contributions to a pension plan against your husband's income.
 Them' the rules!!!

Conan


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## D8Lady (26 Apr 2005)

This boils my blood! The rules are so unfair, you're trying to do the best for your family & yourself.....ahem.....

Perhaps the best thing to do would be to start a PRSA. You do not have to be working in order to do set one up. Also, if / when you start work again I think you may be able to claim tax relief for years when you were unable to. 
General info on PRSAs: 
[broken link removed]

The pensions board also have a specific guide to pensions for women
http://www.pensionsboard.ie/publications2.asp?id=2&name=&rid=67

Hope this helps.


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## Samantha (27 Apr 2005)

Thank a lot D8lady - I will have a look at it.


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