Pay into partner's pension fund?

[pacmon]

My wife and I are in our late 40's, with very little put aside in pension funds. I only started a pension with my employer a year ago, and they are matching a 3% contribution.

My wife is a stay at home mum for our four young children, one with additional needs, so it is tricky for her to return to work at the moment. She has no private pension or PRSA.

We are concerned that she has no pension, and there's only 20 years until retirement age.

What is the best way to maximise contributions to a pension/PRSA for her at this point? We are jointly assessed - is there any way that I can contribute to a pension on her behalf, but out of my gross wages to get the tax benefits? Or are there any other recommendations for a situation like this?

Thanks.

 

[Gordon Gekko]

Unless you think the marriage is on rocky ground, focus on funding your own pension but involve your wife in the discussions around it. i.e. make it clear that it’s for both of you given the important work she does at home.

There’s no tax relief if she has no income, whereas you can add a further 22% a year to yours, rising with age from 50 and then again further times.

Perhaps post further detail in a ‘Money Makeover’ style layout?

 

[ClubMan]

Also check out her PRSI contribution history and eligibility for home maker/carer and other credits towards the state contributory pension.

State Pension (Contributory)

The State Pension (Contributory), previously called the Old Age (Contributory) Pension, is payable to people aged 66 and over who have worked and paid enough social insurance contributions.

www.citizensinformation.ie

HomeCaring Periods Scheme

The HomeCaring Periods Scheme can help you get a higher rate of State Pension (Contributory) if you spent time out of work to care full-time for a child aged under 12, or a person aged 12 or over (including an adult) who needed an increased level of care.

www.citizensinformation.ie

Homemaker's Scheme

If you care full-time for children, or for an ill or disabled person, the Homemaker’s Scheme makes it easier for you to qualify for a State Pension (Contributory).

www.citizensinformation.ie