Deferring Stae pension

Hollypear

Hi
I will be 60 this November ( God am that age laready as I still feel 21)

I have enquired via the Givt pension schem my pension will be £132 p/m If U chiise tio wrk until 64 I would get a lump sum of £44,000 minus tax.

One drawback If I drop dead at 44 yrs 11months and 23 hours the govt get to keep that. That is the doenfall in me being an enternal optimist:rotfl:

So instead of me winning the lottery Mr G Brown will win.

I ahve consulted a financial advisor and diow he didn;t know you could you could do this which seems starange for a financial adiviser. I thought the idea was he would advise me not the other way around.

Perhaps I could send him a bill for my knowledge.

Does anyone know if I should take my pension and invest it and if so where.

Maybe I could offer Fred the Shed an investment!!! at 900% iinterest.

yelf

I assume you mean age 64??

So at the moment would you receive no lump sum? that does seem abit unusual.

McKneff

Hollypear, some clarification
Are you male or female
Are you talking about your state pension.
Your pension - you say £132 per month, do yu mean per week or per month.
what has 44 years 11 months and 23 hours got to do with anything or is it as
yelf says do you mean 64 years etc.

patanne

If you are talking about deferred State Pension - if you should be unfortunate enough to die before taking it then it goes into your estate.

McKneff

Only the basic state pension goes into your estate, any other payment
serps or anything extra on top of your state pension goes back to the government. I have researched it and that is why i am not dererring mine
when i get to retirement age in October.
And some of your questions are pertinent as to whether you are male or female, 65 or 60 retirement age.

Pobby

Well I am gob smacked. So serps is not allowed if you defer.

yelf

McKneff wrote: »

Only the basic state pension goes into your estate, any other payment
serps or anything extra on top of your state pension goes back to the government. .

So if someone dies aage 45 - there accrued state pension is paid to estate, but serps and s2p just go to the government? Interesting case for contracting out there.

With regards to the original question, it refers to 'Government Pension' - does that mean it is a government backed pension scheme, or are we talking about the state pension???

Hollypear

yelf wrote: »

So if someone dies aage 45 - there accrued state pension is paid to estate, but serps and s2p just go to the government? Interesting case for contracting out there.

With regards to the original question, it refers to 'Government Pension' - does that mean it is a government backed pension scheme, or are we talking about the state pension???

Thanks to all for your replies. I am female. And the pension I quoted of £132 is per week. I just got a letter in this mornings post asking if I want to take it this November or defer it.So I will read the booklet and get back to you all. As per usual government booklets are often gobbledegook.

McKneff

Pobby wrote: »

Well I am gob smacked. So serps is not allowed if you defer.

Yes it is allowed and you get it if you live to draw your pension.
But if you die in the meantime, the serps or anything extra on top of your state pension (serps etc) does not get into your estate, the government keeps that portion of it.

jamesd

Your pension would be taxable so if you don't need it, why pay tax earlier than you need to?

If you defer the best option is to take the extra pension income, not the lump sum. Deferring up to three to five years is generally the best amount time, with the longer time for those who are in good health and the shorter one for those who are in average health. The extra certain income is usually worth having.

Do you have other pensions? How about other income? What's your health like, anything life threatening like smoking or being very overweight or having heart trouble? Those things might make something other than the general guidance appropriate.

As for not getting additional state pension benefits if one partner dies:

How much extra State Pension or lump-sum payment will I inherit if my husband dies?
This depends on how the State Pension your husband had put off claiming was made up. You will inherit:
•100% of the extra State Pension or lump-sum payment he had earned on his basic State Pension
•50% of the extra State Pension or lump-sum payment he had earned on his Graduated Retirement Benefit (but not any he may have got from a late wife or civil partner)
•50% of the extra State Pension or lump-sum payment he had earned on his State Second Pension, or
•between 50% and 100% of the extra State Pension or lump-sum payment he had earned on his SERPS pension.
There is a limit to the amount of additional State Pension (State Second Pension and SERPS) that you may receive (through a combination of your own additional State Pension and any additional State Pension you inherit). See our website https://www.dwp.gov.uk for more information

How much extra State Pension or lump-sum payment will I inherit if my wife dies?
This depends on how the State Pension she had put off claiming was made up. The percentages you could inherit are:
•100% of the extra State Pension or lump-sum payment she had earned on her basic State Pension
•50% of the extra State Pension or lump-sum payment she had earned on her Graduated Retirement Benefit (but not any she may have got from a late husband or civil partner)
•50% of the extra State Pension or lump-sum payment she had earned on her State Second Pension, or
•between 50% and 100% of the extra State Pension or lump-sum payment she had earned on her SERPS pension.

There is a limit to the amount of additional State Pension that you may receive (through a combination of your own additional State Pension and any additional State Pension you inherit). See our website https://www.dwp.gov.uk for more information.
If any part of the State Pension that your wife had been putting off claiming was based on your National Insurance contributions, you will not be able to inherit extra State Pension or a lump-sum payment from this part of her State Pension.

McKneff

Have you noticed that there are a lot of may, could and mights when it comes to you getting money.

When it comes to you not getting money there are plenty of Will Nots