Sadly, it’s this sentiment that has homemakers classed in the ‘high risk’ category, where pensions and retirement are concerned.
If you were living in the UK, you could possibly fall back on the state pension of £8,000 per year, so long as you had 35 years of National Insurance credits. But for many UK expat homemakers, the NI payments have long since been dropped.
Here, Senior Wealth Manager for Her Finance Linda Heath shares her top tips to help mums maximise on their future savings.
1. Don’t give up the National Insurance payments
For UK expat mums, it’s usually beneficial to keep up your NI payments. You never know what’s around the corner and if you might need this buffer zone. If you haven’t bothered to keep up with payments, you can find out if you’re eligible to plug gaps in your National Insurance record by visiting gov.uk.
2. Set up a retirement plan
Just because you aren’t in ‘paid employment’, doesn’t mean you shouldn’t be preparing for your future retirement. Mums should be setting up their own retirement planning scheme, with contributions paid on a monthly basis by their spouse. This is an important aspect of growing a family’s wealth, as well as empowering women to feel valued for the contribution they make as a homemaker. There are some suggestions that the net worth of a homemaker is in the region of £159,137 per annum. I’m not suggesting you ask for this much from your spouse, but it’s important to realise your value.
3. Keep track of your old pensions
4. Ensure your joint savings don’t run the risk of falling short
Planning your retirement with a professional will help you to calculate exactly how much money you will need for retirement. A reputable advisor will normally take a two-tiered approach, helping you establish how much money you will need to live your dreams, and how much you should have to take care of yourselves, should unexpected circumstances arise.
5. Choose the right retirement fund
There are endless options for investors, but it’s important you choose the right fund at the right risk – especially if you’re a homemaker with limited fund options. One such trending solution is the ÆON platform and it’s easy to see why. This option comes with reduced risk and hugely reduced costs, making it a really good choice for investors who need a safety net. It’s got two of the biggest names in wealth management behind it - Fidelity and Quilter Cheviot and the reason for its popularity is largely down to the way it is built to react with the markets, with minimal or no effort on the client’s part.