State pension - quick question

Geoffo_M

jeannieblue wrote: »

I don't know what SERPS are....

I haven't had a pay rise in over 2 years - my wages just about cover my outgoings, so no chance at the moment to save

I am not conversant with the financial world.. I've got under four years to state retirement age. So not alot of time!!

I've always wanted to put money by or add to pension and the like, but I don't have any spare money each month. I do all the right things - thanks to this site. I have trimmed down, got the best deals, shop around, found cheap ways around the Xmas hassle. Use my car for work only (no public transport), park it up Friday night and not use it til Monday morning. In other words, not much of a social life either!

I can't cut back anymore. I have done everything that Martin suggests! And I am proud that considering how prices have risen, I am managing to break even (just) each month!! And have no debts !!

Give yourself a big pat on the back jeannie. You've truly deserved your retirement, including the odd night out!

jeannieblue

Thanks - but consider myself one of the majority these days... everyone is struggling.

sleepless_saver

jeannieblue wrote: »

Sleepless & Chesky I give you both ten out of ten for people skills and knowledge/information........... unless I find that you were wrong, and then I may have to deduct points...... :eek:

Just in case you take those points away:rolleyes:, I should remind you that you should do the sums to factor your mortgage into all of this. Will it end before you plan to stop work? Is it worth reducing the total amount of interest you pay over the lifetime of the mortgage by getting your pension earlier and paying more of the capital off while you are still earning?

jeannieblue

sleepless_saver wrote: »

Just in case you take those points away:rolleyes:, I should remind you that you should do the sums to factor your mortgage into all of this. Will it end before you plan to stop work? Is it worth reducing the total amount of interest you pay over the lifetime of the mortgage by getting your pension earlier and paying more of the capital off while you are still earning?

Tricky one that......

House is co owned by myself and son. Its complicated - but he pays for the mortgage. I plan to sign my half of house over in not too distant future to avoid inheritance tax and in case I get ill or go 'doo lally'!!

Mrs_Money

seven-day-weekend wrote: »

If you have claimed Child Benefit since 1974, your pension is protected. Depending upon your age, you either get Home Responsibility Protection, or NI Credits.

Just a small warning here...
Home Responsibilities Protection is only paid for every year you have been claiming child benefit that you have not earned anything at all. This caught me out when I got my forecast as I assumed I'd get HRP for every year I was receiving CB and of course, when the children were small, I had a temping part-time job (whilst also doing my degree) and I paid a little bit of NI and Tax, so they knew I had worked those years - even though it was only 2 or 3 weeks in the summer hols, I lost my home responsibilties protection for the whole year and then had NI contributions missing -some of which I have paid up since, to give me another couple of qualifying years. I'm okay now as I've found out I've got more than the necessary 30 qualifying years for my pension!
Just another thought if you get one of those NI statements saying you have contributions missing - if they are very small (one of my shortfalls was only £43) it may be worth paying them to get another qualifying year - hope that all makes sense!
No-one in government departments ever tells you these things!

jeannieblue

It makes perfect sense Mrs Money!

What worries me - is that this is all on 'silver savers' and I am thinking that my nieces who are at home with small children, but also doing the odd bit of work here and there to get through. Well - they could lose out. Both their husbands work, but as we all know, its a bit tough out there at the moment!

I'll point them in this direction... It's hard to look forward when you are young.

EdInvestor

jeannieblue wrote: »

Tricky one that......

House is co owned by myself and son. Its complicated - but he pays for the mortgage. I plan to sign my half of house over in not too distant future to avoid inheritance tax and in case I get ill or go 'doo lally'!!

This could be a very bad idea. Not only would it not avoid IHT (gift with reservation of benefit) but also your ason could be hit with a massive CGT bill on the eventual sale of the home.

Young women should not worry about the state pension as the rules have now changed to remove these discriminatory anomalies.

jeannieblue

EdInvestor wrote: »

This could be a very bad idea. Not only would it not avoid IHT (gift with reservation of benefit) but also your ason could be hit with a massive CGT bill on the eventual sale of the home.

Young women should not worry about the state pension as the rules have now changed to remove these discriminatory anomalies.

Ok - call me a thicko... I worked out the IHT but what is CGT? Given time, I could probably work it out - but it has been a long day and I am tired

Thanks Ed

johnllew

jeannieblue wrote: »

what is CGT?

Capital Gains Tax.

jeannieblue

johnllew wrote: »

Capital Gains Tax.

Duh!

I would've worked it out - eventually

Can I pick some more brains?

ie - re IHT and CGT (I'm learning) - if you transfer funds or property over to son for instance - how long before I can die or whatever, before he gets stung for money by the leeches that reside in Westminster?

I'm not planning in pegging it just yet...