pension deferral

McKneff

could anyone tell me that if i defer my pension for 1 year and i die during that year is my pension put into my estate or do i lose it.

dunstonh

What type of pension?

Robert_Sterling_3

Read your terms and conditions.
I am optimistic.

McKneff

Sorry, i should have been more specific, i meant my state pension,

MikeJones_2

Hi Annie,


From State Pension Deferral - Your Guide - May 2008 (The Pensions Service) (Crown Copyright)

How different circumstances affect extra State Pension and lump-sum payments What happens if I die?
[FONT=OPMEJ O+ Bliss,Bliss]This depends on whether you are married or in a civil partnership, and whether you died before or after you had claimed your State Pension. [/FONT]

[FONT=OPMEF L+ Bliss,Bliss]If you are married or in a civil partnership [/FONT][FONT=OPMEJ O+ Bliss,Bliss]and you die, your husband, wife or civil partner may be entitled to get extra State Pension or a lump-sum payment because you put off claiming your State Pension. [/FONT]
[FONT=OPMEJ O+ Bliss,Bliss]If you had put off claiming your shared additional pension, the rules are different, but your husband, wife or civil partner could still inherit all or part of the lump sum if you had already claimed your State Pension and had chosen a lump sum before you died. In this case it will form part of your estate. [/FONT]
[FONT=OPMEJ O+ Bliss,Bliss]If you died after claiming your State Pension but before you chose to get extra State Pension or a lump-sum payment (you had three months after making your claim to decide) someone may be appointed to make this choice on behalf of your estate. [/FONT]

Other information is available on The Pensions Service website

Hope that helps.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

EdInvestor

[FONT=OPMEF L+ Bliss,Bliss]

If you are married or in a civil partnership [/FONT][FONT=OPMEJ O+ Bliss,Bliss]and you die, your husband, wife or civil partner may be entitled to get extra State Pension or a lump-sum payment because you put off claiming your State Pension. [/FONT]
[FONT=OPMEJ O+ Bliss,Bliss]If you had put off claiming your shared additional pension, the rules are different, but your husband, wife or civil partner could still inherit all or part of the lump sum if you had already claimed your State Pension and had chosen a lump sum before you died. In this case it will form part of your estate. [/FONT]
[FONT=OPMEJ O+ Bliss,Bliss]If you died after claiming your State Pension but before you chose to get extra State Pension or a lump-sum payment (you had three months after making your claim to decide) someone may be appointed to make this choice on behalf of your estate. [/FONT]

McKneff

Yes, i had read that and as you pointed out its all 'mays, mights and could stills' Thats why i asked. I just thought i was missing something.
So i still dont know whether to defer it or not. the deferral would only be for the interest rate, being better. I dont retire till October so will have to think about it a bit more.

Thanks all

tellboy_2

Assuming no lump sum (taxable) If you delay your pension for 12 months and start drawing it at a higher rate it will take nine and a half years to be back in profit ignoring all other aspects such as reducing your tax code and thus paying less on other pensions or income.
It could still be worth doing because of this.
For those that dont know your State Pension is automatically taxed by reducing your tax code to almost nothing.