Pensions - Articles - Minimise women's pension penalties

 This is especially useful for women who need to take time out of work to have children or care for relatives, as it can help to plug gaps in pension contributions while their earning power is limited. For those considering having children, increasing your pension contributions by just 1.15% at age 22 would wipe out the deficit caused by taking a career break in your 30s, making it a worthwhile investment in you and your partner’s future.

 “Currently, you can contribute up to £2,880 per tax year into a non-working person’s pension, and this contribution receives basic 20% tax relief, making the total amount in the pension £3,600. This can be done through regular monthly payments or a lump sum. However, it’s important to make sure you don’t accidentally go over the annual pension allowance, otherwise you won’t be able to benefit from tax relief. It’s also worth remembering that if you are paying into a pension on behalf of someone else, under current rules, they can’t access these funds until they reach the age of 55 (rising to 57 from 2028). If you’re considering exploring third-party contributions, then it’s best to get professional financial advice."

  IFS’s report How do people already out of employment fare when the state pension age rises