State pension info?

[sophiepop]

Hi

We are starting to look at pensions and its sending me to sleep.

I am going to get advice on this, but before I do I wonder if you could help me with some questions?

My Husband has a military pension, so we are lucky. I have nothing to speak of. I did start a small pension plan, but stopped paying into it. It was also linked to contracting out of serps.

I have had my annual statement today and they have told me that I can claim all of the personal pension plan as a lump sum.

So, here's my question...

Can my Husband make up my shortfalls in NI? He will have made well over his target.

I can't believe that I am now old enough for this to be going through my head. The last 30 years have rushed up and smacked me in the face.

Thanks

[suehen]

You may have some pension years of your own as I had 12 years worth added when our children were young and I did not earn much for those year they added them on as I got child benefit. You can give Department of work & Pensions a call on 08453000168 and ask for a state Pension Statement you will need your national insurance number to hand. It takes about 2 weeks to sent it out and theres a good booklet which comes with it explaining how to make up shortfalls hope that helps you a little.

[sophiepop]

Originally Posted by suehen

You may have some pension years of your own as I had 12 years worth added when our children were young and I did not earn much for those year they added them on as I got child benefit. You can give Department of work & Pensions a call on 08453000168 and ask for a state Pension Statement you will need your national insurance number to hand. It takes about 2 weeks to sent it out and theres a good booklet which comes with it explaining how to make up shortfalls hope that helps you a little.

See more...

Thanks

I have got some years, before opting out of Serps and then after going back in I had 4 years maternity break, but for some time I have only earn part-time wages. My Husband will have worked 51 years worth of NI when he retires so I was hoping to pinch some of them as according to the site, he only needs 30 of them

[Pumba75]

To the best of my knowledge, you can't make use of your husband's "additional" years in that way.

Regarding your personal pension, obviously have no idea what it's worth, but just exercise caution over taking it as a lump sum, you may end up paying more tax on it than you need to.

[FloridaDave]

Originally Posted by Pumba75

To the best of my knowledge, you can't make use of your husband's "additional" years in that way.

Regarding your personal pension, obviously have no idea what it's worth, but just exercise caution over taking it as a lump sum, you may end up paying more tax on it than you need to.

See more...

Might work out cheaper tax wise doing a 'draw down' pension over a number of years to lessen the tax as you won't take over your allowed tax free threshold and will have a guaranteed income for a period of time. Different to buying an annuity as you have an 'end date' when you've exhausted the pot but if you don't reach the end date the remainder can be inherited.

It'll all change by the time I get there anyway

[sophiepop]

Originally Posted by FloridaDave

Might work out cheaper tax wise doing a 'draw down' pension over a number of years to lessen the tax as you won't take over your allowed tax free threshold and will have a guaranteed income for a period of time. Different to buying an annuity as you have an 'end date' when you've exhausted the pot but if you don't reach the end date the remainder can be inherited.

It'll all change by the time I get there anyway

See more...

The guy on the phone said that the rules can change and I have no doubt that on the eve of my 55th Birthday that change will happen

My pot isn't worth that much that I am really worried, but there is a nice amount for a holiday if needed. We can easily live of the military pension, which is a huge relief

[Cherrypie]

As pp has said you'll need to get a statement, you can't use dhs in conts unfortunately. You could use your lump sum to pay for state pension top up. Google it, you can register for info now. You can but up to £25 extra so per week, you need to do the math to see if it works for you, I think it's supposed to be a decent 'product' cp x

[Armanaleg]

State pension forecasts can be ordered online from here - gov.uk/state-pension-statement. You may be able to make use of your husbands NI record. Have a look here - moneyadviceservice.u...state-pensions

With regard to your personal pension, speak to an independent financial adviser or the Pension wise service before taking any action as you may end up with a tax shock! Most IFA's will offer a free consultation that give you enough information.

Good luck - hope you can get enough for a tax-free holiday!

[Cherrypie]

Actually forget that you are too young I think, if you Dh is older maybe he could buy it? Not sure.

[Floridafun]

SERPS is different to thr basic rate pension. opting out of serps does not affect the basic rate pension only the earnings related element, from what I understand?