State pension - quick question

jeannieblue

chesky369 wrote: »

Yes, I guess it'll be extra vests and liberty bodices this winter.

Ah that takes me back to my childhood...

Savvy_Sue

jeannieblue wrote: »

I know what you are thinking... Money changes people. Not us it doesn't. We did have a bereavement where money left was not divided how it should have been re the will. We sorted it out so that it worked out fair. The solicitor dealing with the probate was a tad gobsmacked to say the least.

jeannie, I know there are families like that. But I still say that you shouldn't rush to give away either money or house with the thought that it will then help avoid IHT. It can create as many problems as it solves, if not more. And of course, you can give away as much as you like, BUT if you die within 7 years then there's a tax liability. Since you're not planning to peg it just yet, by all means give away what you can afford, but do it because you feel like it rather than because there's a POSSIBLE tax advantage!

For example, you may give very generously to your family, leaving yourself just enough for your current circumstances, and they may use the money eg to help buy a house which they wouldn't otherwise be able to afford. Something then happens to you which means you no longer have just enough - illness, disability, accident, rising fuel prices ... Obviously your family want to help you, BUT the money you gave them is now tied up in their new house. So they can't return the money you gave them. They can't even borrow to help you because of the credit crunch, because since buying this shiny new house one of them has fallen pregnant / had a baby / lost their job / had an accident etc.

You think you can claim benefits, Pension Credit for example. However there's some glitch with that, it takes forever to come through, or for some reason you're NOT entitled. Meanwhile the bills pile up.

I'm a cheerful soul, aren't I? But I have seen someone give so generously to family to avoid IHT that they were left with not quite enough, and either through pride on their part or ignorance on their family's part, it was not pretty.

seven-day-weekend

Another reason not to give the house away is if, for example, the person you have given it to gets married and then divorced, his/her spouse will be entitled to a share of the house and if none of you have the capital then the house will have to be sold to provide it.

Or if they goes bankrupt, the house will be at risk.

It's not as simple as just 'trusting the family'. Some things are beyond the family's control.

jeannieblue

Thank you 'guys'!!

I've not got anything to give away - unless you collect bears........

Youngest son and I joint own property we are in. I own my half - due to inheritance - son bought the other half off of other inheritor (if there is such a word), taking a mortgage out in order to do so. The mortgage went in joint names - for finance reasons. Son pays the mortgage.

Verbal agreement between us, is that if he meets someone, he can buy me out and I can get a nice cosy flat somewhere. So far, football and cars etc are coming first

I'm just thinking - that it could be alot easier for him, if house was all in his name if I should peg it.

I am also thinking that if I win the lottery, better if he claims it. It is highly unlikely, but I don't want the government to take anymore off of me than is necessary. I think of them as grave diggers as it is. Plus many more adjectives and nouns..

Like most people - really fed up with getting ripped off from propaganda etc. Climate change - well yes, it is happening, naturally, as it has for billions of years... but why should i stop driving my car and being taxed in excess because of something that was going to happen anyway??

Grumpy Old Woman signing off...........

Savvy_Sue

Thanks SDW, I was trying to think of reasonable examples but my mind went a bit blank and I didn't want to be thought a doom-monger! :rotfl:

jeannieblue

Savvy_Sue wrote: »

Thanks SDW, I was trying to think of reasonable examples but my mind went a bit blank and I didn't want to be thought a doom-monger! :rotfl:

You couldn't be a 'doom monger' if you tried!!

I condensed my situation down quite a bit on previous post! I'm just a grumpy old woman these days and I begrudge the government getting a cent of my money that could go to my sons and/or family.

Leeches, the lot of them..

bloaty

I am one of the not so lucky ones and have to wait until 64 yrs 9 mths before I can claim my state pension.

However. I went onto the pensions website too some time last week and although I can't get my state pension at 60 (due to my age) I was pleased to learn that even if I tool early retirement and left last week rather than in just less than 8 yrs time, the difference would be just under £1 a week less so even if I retire between now and then it won't be too catastrophic.

I also have a pension with the NHS but currently only for 20 yrs.

Feel a lot better knowing that I could retire over the next 4-8 yrs, take my personal pension, work p/t (less stressful than current job) and get my state pension in 8 yrs time - if I am still alive and kicking LOL.

chesky369

Bloaty, be very careful if you are still contributing to your NHS pension and are planning to work part-time. If the scheme is final salary it may have a bearing on your end pension if you reduce your time (and thus your annual salary).

SandraScarlett

It's a cruel ol' world when you get your pension. I hadn't amassed enough years, on what was known as "full stamp", so I received 60%, based on my husband's pension, and then a tiddly-widdly bit, because of the Graduated Pension Contributions I paid, when I first worked.

So I get (drum roll) £67.99 a week, and then various little private pensions, which are about £60 a week. But although my State Pension is paid into my bank account in full, I'm still liable for tax, once it exceeds my free pay limit.

This is now £6035 a year, so what they do, is calculate how much you receive in State and Private Pensions a year. Then they deduct your free pay, from that figure, and then calculate your tax, and deduct the tax from one of your private pensions.

This didn't used to be too bad when we had the 10p tax band, but now I'm over £100 a year worse off. That may not seem a fortune to some people, but to others it's a lot of money. My husband is nearly 70, so he gets the higher free pay, as mentioned by Sleepless Saver.

The trouble is, if you've paid into a private pension, and tried to be cautious and saved your money, you're then penalised with regards to Pension Credits etc. But you need to be savvy and keep looking on websites such as Age Concern, because often the rules change, without a fanfare!

Mind you, I'm having more fun in my retirement than I did in my working life!

Sandra

jeannieblue

SandraScarlett wrote: »

It's a cruel ol' world when you get your pension. I hadn't amassed enough years, on what was known as "full stamp", so I received 60%, based on my husband's pension, and then a tiddly-widdly bit, because of the Graduated Pension Contributions I paid, when I first worked.

So I get (drum roll) £67.99 a week, and then various little private pensions, which are about £60 a week. But although my State Pension is paid into my bank account in full, I'm still liable for tax, once it exceeds my free pay limit.

This is now £6035 a year, so what they do, is calculate how much you receive in State and Private Pensions a year. Then they deduct your free pay, from that figure, and then calculate your tax, and deduct the tax from one of your private pensions.

This didn't used to be too bad when we had the 10p tax band, but now I'm over £100 a year worse off. That may not seem a fortune to some people, but to others it's a lot of money. My husband is nearly 70, so he gets the higher free pay, as mentioned by Sleepless Saver.

The trouble is, if you've paid into a private pension, and tried to be cautious and saved your money, you're then penalised with regards to Pension Credits etc. But you need to be savvy and keep looking on websites such as Age Concern, because often the rules change, without a fanfare!

Mind you, I'm having more fun in my retirement than I did in my working life!

Sandra

I'm really glad that you are having fun - but if doesn't make it right tho.

This stupid country now seems to reward people for doing nothing. Where as all of us that have worked our socks off, get a pittance... justice, no such word in the English language these days..