Widows entitlement to state pension

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  • Thank you all for the swift responses! It is appreciated. Unfortunately she doesn't have many friends other than family (lost touch with many and think she finds it difficult to get out and make new ones). But even then she is quite uneasy about mentioning this as I think she feels that she is committing fraud of some kind - which as far as my siblings and I are concerned, cannot be the case as we have contacted the Pension Service in the past to confirm everything is OK and a representative from Unilever helped to sort everything at the very beginning!! The problem is we don't really understand the finer details of all this pension stuff and neither does she - so other than a lack of anyone telling us something is wrong when we have asked for confirmation (am I being completely niave here?), we find it difficult to substantiate an explanation that will remove her anxiety. I am trying to gather the facts to decipher the rationale behind the specific payments she receives, but I am struggling to understand it myself. One of the things she is worried about is the tax. How can we investigate this for her? Is it possible to claim a late husbands private AND state pension also? Or would this be covered by a private pension only? Thanks again.
  • jem16
    jem16 Posts: 19,397
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    Uluru wrote: »
    One of the things she is worried about is the tax. How can we investigate this for her?

    Your mum is 64, possibly 65 now?

    Personal allowance for up to age 65 is £6035. From age 65 it is £9030. You will need to add your mum's state pension and her gross pension from your dad's pension company together. Anything above the personal allowance is taxed at 20%. If she is above this personal allowance she needs to get in touch with HMRC who will send her a form to complete which should detail all of her income.
    Is it possible to claim a late husbands private AND state pension also? Or would this be covered by a private pension only? Thanks again.

    Yes it is possible to claim both and you may find she gets more pension based on your dad's contributions. Contact them at the link EdInvestor gave earlier.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Uluru wrote: »
    One of the things she is worried about is the tax. How can we investigate this for her?

    Does she have a tax code?Has she received any communications from HMRC? If not, contact her tax office which will be the one which serves Unilever. There is a short form which they send to people who have recently retired - it's only a couple of pages long. Ask for one of those, fill it in and return it and Mum will then be deluged with letters announcing new codings for a few months as the system sorts her out:D Eventuallky it will become clear. Is tax being deducted from the Unilever pension? How much is her total income?
    Is it possible to claim a late husbands private AND state pension also?-/quote]

    Yes Normally what happens is the husband's occupational pension will pay a spouse's pension to the widow.This may or may not be as much as he got - between 50% and 100% of what he got is typical.

    With the state pension, she should get 100% of his basic pension and (probably) 50% of any SERPS/S2P additional state pension he got.

    Both these pensions can be received at the same time.
    Trying to keep it simple...;)
  • jem16
    jem16 Posts: 19,397
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    EdInvestor wrote: »
    and (probably) 50% of any SERPS/S2P additional state pension he got.

    There may not be any/much SERPS/S2P as he may have been contracted out because of his occupational pension.
  • Both myself and my husband will be entitled to an Occupational Pension and a State Pension.

    It is quite usual to have more than one pension source.

    As for tax, your mum will have a personal allowance - add all her income together and if it is over her personal allowance she will have to pay tax on the excess.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • If you want a rationale - her husband has paid into the private pension, so she is entitled to receive that (the amount according to the terms of the scheme); she has paid into her State Pension so she is entitled to receive that too, the amount depending on how many qualifying years she has.

    She may also be entitled to some SERPS/S2P (additional State Pension) depending upon how much has been accrued.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • jancee_2
    jancee_2 Posts: 221 Forumite
    Another way of putting it might be to say, 'Right. Dad worked and paid National Insurance from his wages. That entitled him [and his widow if he died] to state pension. But he also paid out extra for his Unilever pension so that he and his wife would have more to live on in retirement. So he paid for two pensions from his wages every week, which costs a lot more than just National Insurance on its own, so she is entitled to both.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    Both myself and my husband will be entitled to an Occupational Pension and a State Pension.

    It is quite usual to have more than one pension source.

    Yes. Many of us have state pension and work-based, or other private, pension in addition.
    As for tax, your mum will have a personal allowance - add all her income together and if it is over her personal allowance she will have to pay tax on the excess.

    She will be better off for tax purposes when she reaches age 65, because that's when the age-related personal allowances kick in. Have a look on HMRC's site: http://www.hmrc.gov.uk/pensioners/index.htm

    HTH
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • boobbby
    boobbby Posts: 769 Forumite
    I often notice that posters refer to the age related pension allowance as being available from age 65. In fact it is available from the start of the tax year after your age is 64. Best day to be born is the 4th April !!
    BB
  • jancee_2
    jancee_2 Posts: 221 Forumite
    boobbby wrote: »
    I often notice that posters refer to the age related pension as being available from age 65. In fact it is available from the start of the tax year after your age is 64. Best day to be born is the 4th April !!
    BB

    Not quite true boobby! Under current rules a man can claim pension on his 65th birthday, a woman on her 60th. But the FQY - final qualifying year - is, the complete tax year before that.
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