Pension outlook poor

savetilibleed

I was in a company scheme from 1982 to 1994 until redundancy. I was 28 when I started it and before in SERPS. After 5 mnths without work, I got a temp job for 3 months that lasted 6 years! After 2 years I was considered permanent and could have joined the company scheme there. People were slowly being made redundant there do I never knew how long it would be for me. Plus I had had cancer 1991/3, so was not really looking ahead too much in the years that followed. I had no other pension provision, private pensions having got a bad name . I was redundant again in 2000 but straight into another job which I moved from in 9 months.

I did start their pension scheme, but I left in 2002 due mainly to poor health (not cancer) and had my contributions repaind minus reinstatement to SERPS. I haven't worked since mainly due to health, so I have pretty poor pension outlook. I am just 54.

The pension I left in 1994 was transferred to an annuity to pay at 65 or death if earlier. It is worth not much, about £4000 from memory.

I do have considerable savings that my wife and I mainly live on + benefits that will run out soon. My wife only has a tiny retirement pension (I mean tiny) due to not having paid enough NI contributions. My savings mean she can't get pension credits of course.

Mad suggestion that has been bugging me - is there any merit (or the opposite) of sinking savings into a pension fund? If money is in a pension fund it will no longer be capital and my wife can get pension credits? Or is that fraud or something?

Even if I was back at work now, and I hope I can in the next months, the pension situation would not change substantially, even if I started to pay into a scheme.

dunstonh

is there any merit (or the opposite) of sinking savings into a pension fund?

Maybe, maybe not. It would depend on your circumstances. Use of a pension may also be suitable but not necessarily in the way you are thinking of.

If money is in a pension fund it will no longer be capital and my wife can get pension credits?

Pension credits are means tested on household income and capital. So, moving it around between you wont make any difference. There are certain investment products you can use at your age and they are not included in the means test if written correctly. However, perhaps your focus should be more on achieving your income and capital requirements first rather than trying to get a bit of pension credit.

EdInvestor

savetilibleed wrote: »

My wife only has a tiny retirement pension (I mean tiny) due to not having paid enough NI contributions.

Have you checked her situation since the recent rule changes?

Suggest you both get new pension forecasts here:

https://www.thepensionservice.gov.uk

savetilibleed

EdInvestor wrote: »

Have you checked her situation since the recent rule changes?

Suggest you both get new pension forecasts here:

www.thepensionservice.gov.uk

I'm going to get a new forecast for myself, but my wife is older and had been getting her tiny pension for some time. It is only £191 every 4 weeks.

What is the rule change you refer to?

EdInvestor

savetilibleed wrote: »

I'm going to get a new forecast for myself, but my wife is older and had been getting her tiny pension for some time. It is only £191 every 4 weeks.

What is the rule change you refer to?

Unfortunately the new rules apply to people retiring after 2010.They make it much easier for women to get the full state pension in their own right.

savetilibleed

dunstonh wrote: »

There are certain investment products you can use at your age and they are not included in the means test if written correctly. However, perhaps your focus should be more on achieving your income and capital requirements first rather than trying to get a bit of pension credit.

Thanks, yes a lot, I have been frantically getting money in to fixed accounts like so many others, with the exception of my substantial cash ISA that presently at least is still doing relatively OK variable in YBS.