Do I take My Old Age Pension Next Year?

[Loopylooloo]

Originally Posted by Mr Tom Morrow

I have decided I am the Leader of COOTs. It's a Men Only Group on the Dibb

Coalition Of Old Timers.

To be a member you need to be a Willy

Worthy
Independent
Lucid
Lucky
Yummy.

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Not sure we want lots of Willys on the Dibb! Might upset us DOG’s! And we don’t want to encourage MH too much either do we...

[Twiggy1953]

Originally Posted by Nannad

I had my letter last week inviting me to claim my pension last week to Tom. I have The full amount of years in, was going to defer for a year. When I went to the website and read the t and c’s, because I claim carers allowance I was not allowed. Carers allowance stops when you get your pension, because you are not allowed to claim 2 benefits. If I was allowed I would have deferred
,

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That happened to me a couple of years ago. I think it’s wrong. It’s not as if you suddenly stop being a carer. It annoyed the hell out of me. 😡

[stupet11]

Slightly different dilemma for me (being so young!) - I could retire in 5 years time when mortgage is done, and start drawing pension - would be a third of my current salary going early - but I am also a sports coach part time, and that would boost my income enough for the luxuries - thinking only need to manage for 12 years until I can claim state pension at 67.

So hard to figure our what you will actuality get from your pens though...amalgamating them with someone like the Finance Shop may give me more, but a lot of fees for maybe not!

I guess can only make decision a few months before I could retire...

[Mr Tom Morrow]

Originally Posted by stupet11

Slightly different dilemma for me (being so young!) - I could retire in 5 years time when mortgage is done, and start drawing pension - would be a third of my current salary going early - but I am also a sports coach part time, and that would boost my income enough for the luxuries - thinking only need to manage for 12 years until I can claim state pension at 67.

So hard to figure our what you will actuality get from your pens though...amalgamating them with someone like the Finance Shop may give me more, but a lot of fees for maybe not!

I guess can only make decision a few months before I could retire...

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It's not an easy decision is it. I had the decision scenario removed from me as I got chopped in the last cash crisis.

I was tamping but in hindsight it was the best thing ever for me.

Best of luck going forward.

[stupet11]

Cheers Tom - I just survived 2 rounds of redundancies - if my mortgage was done, I would have tried harder!

All about timing...

[disney332]

Originally Posted by stupet11

Slightly different dilemma for me (being so young!) - I could retire in 5 years time when mortgage is done, and start drawing pension - would be a third of my current salary going early - but I am also a sports coach part time, and that would boost my income enough for the luxuries - thinking only need to manage for 12 years until I can claim state pension at 67.

So hard to figure our what you will actuality get from your pens though...amalgamating them with someone like the Finance Shop may give me more, but a lot of fees for maybe not!

I guess can only make decision a few months before I could retire...

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I retired as soon as I could on a pension of about what you state.

My decision was based on the enjoyment now whilst i was fit and able and not in a facility dribbling and wearing a nappy. In other words, you never know what's round the corner heaven forbid of course.

Go for it.

Disney332 + COOT & (as I possess all the named qualities in abundance) SUBSTANTIAL WILLY

[EssexSue]

Originally Posted by stupet11

Cheers Tom - I just survived 2 rounds of redundancies - if my mortgage was done, I would have tried harder!

All about timing...

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Dave managed to get made redundant twice, fortunately in later life. I was hoping for it, suspect I'd probably be getting it now if I'd hung on.

[Mr Tom Morrow]

It is a sad fact than when talking about Pensions you must consider mortality rates both unexpected and hereditary.

My Dad never had his as he died aged 63.

My Father in Law was 44 when he died.

[123]

Tom,

I've just sorted this out for my Mum-in-Law. She is 74 right now (still working) and not yet drawn her state pension; because of the age/timings etc she was eligible at 60.

Now the rules then where different in how much extra it adds each month per year of deferral and the overall maximum amount is lower at about £140 a month rather than £180ish on the newer scheme, the bigger difference is you can take the unpaid years in a lump sum rather than extra mothly payments.

In sorting this out I discovered that if you die in between state age and receiving the pension you (the estate) is entitled to nothing (even though the sate has saved - and technically owes you - £7000+ a year); it just goes into the overall cash furnance that is the UK finances.

So in this case she was owed almost 15*£7000 plus interest. A total of £100K+ or more than doubling her monthly pension if she took it as extra payments.

It woudl have taken nearly 20 years to "break even" on extra payments so opted for the cash sum and normal entitlement each month.

I guess what I'm trying to say is that if you defer and then claim and then go on to live 20 years it was a good idea to defer. If however you die before making the claim or after claiming but before you've "caught up" you are just giving cash to the government

(Edit : she doesn't have a personal pension and if you are already a tax payer on your private pension amount, the amount of time to break even equivalence is less because of the tax take - but it also makes paying for lost years less lucrative too)

[Mr Tom Morrow]

Originally Posted by 123

Tom,

I've just sorted this out for my Mum-in-Law. She is 74 right now (still working) and not yet drawn her state pension; because of the age/timings etc she was eligible at 60.

Now the rules then where different in how much extra it adds each month per year of deferral and the overall maximum amount is lower at about £140 a month rather than £180ish on the newer scheme, the bigger difference is you can take the unpaid years in a lump sum rather than extra mothly payments.

In sorting this out I discovered that if you die in between state age and receiving the pension you (the estate) is entitled to nothing (even though the sate has saved - and technically owes you - £7000+ a year); it just goes into the overall cash furnance that is the UK finances.

So in this case she was owed almost 15*£7000 plus interest. A total of £100K+ or more than doubling her monthly pension if she took it as extra payments.

It woudl have taken nearly 20 years to "break even" on extra payments so opted for the cash sum and normal entitlement each month.

I guess what I'm trying to say is that if you defer and then claim and then go on to live 20 years it was a good idea to defer. If however you die before making the claim or after claiming but before you've "caught up" you are just giving cash to the government

(Edit : she doesn't have a personal pension and if you are already a tax payer on your private pension amount, the amount of time to break even equivalence is less because of the tax take - but it also makes paying for lost years less lucrative too)

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Great explanation and example. Thank you.
Yes I am a tax payer on my Private Pension.

I'm certain now that I will be claiming it next February but it can sit in the Bank until we decide the way forward.