Pension warning

Mrs_pbradley936

Something has happened to a friend of a friend that I find unreasonable and would like to warn others about it.

At age 56 this woman was medically retired from an office job at Tesco. She was diagnosed with breast cancer and had a mastectomy then about 18 months later a reconstruction. While all that was going on one of her children got married and another had a baby plus her husband had a heart attack.

She is fast approaching 60 and has just been told that she has not made enough contributions to get a full pension so will get about £78 a week. When she queried it she was told that she ought to have claimed benefits! Tesco paid her for as long as they could then she got Statuary Sick Pay and when that stopped she thought she would have to muddle through until her pension kicked in. If she had claimed benefits she would have had her pension contributions credited but because she did not she is being penalised. So has she saved the country money by not claiming and
now her pension will be short – she can pay the missing contributions but she is incensed as am I that this can be allowed. She does not know the ins and outs of benefits and claiming and nobody told her that her pension was in jeopardy.

Farway

Sorry to hear this, but can she claim Pension Credits once she reaches 60? This will top her pension up to well over £100

Plus once she is on Pension Credits other benefits kick in, like council tax relief, social tariffs for energy, and no doubt many others

In this day & age no one will tell you anything, a person is expected to do their own research, although no doubt CAB would advise

EdInvestor

It's not that you have to claim benefits.Rather you need to register as unemployed so they can credit pension contributions.

how otherwise was she expecting them to be paid?

petersandyglen

As I understand it, once she reaches 60, provided she has no more than around £16000 in savings, she will be eligible for pension credit which will take her up to state retirement payment. If she has more than is allowed, then perhaps a new car?.........

Mrs_pbradley936

EdInvestor wrote: »

It's not that you have to claim benefits.Rather you need to register as unemployed so they can credit pension contributions.

how otherwise was she expecting them to be paid?

I just don't think she knew about any of it but she is just dismayed by it all. I am not sure that that it was as obvious to to her as it may be to others. Perhaps when the SSP ends they ought to tell you that you should register/claim because there are consequences for failing to do so.

McKneff

She should also get 2nd State Pension added to her pension.

When is she 60, the rules change dramatically in April 2010.

I was in the same boat but earlier on in my life. I was asked to choose
between Married womans stamp and full stamp. Nobody told me (at 18) that it
affected my pension or benefits. I only found out 20 years ago about this then went onto full stamp. so I have only 20 years contributions whereas i needed 39 years so i only get half the pension. plus about £20 odd second pension.

In April everybody will only need 30 years contributions

If she is 60 before April she just has to suck it up Im afraid.

quote - If she has more than is allowed, then perhaps a new car?........quote

and no, this isnt allowed either to bring you savings down under the limit is deliberate deprivation of assets and you will still be assessed as having the money.

tanith

What a shame the HR department of Tesco didn't inform her when she was medically retired... I don't know if they have a real responsibility to do this or not but it would of been helpful if they had...
I was in a similar position at 57 and was told I could claim Incapacity Benefit once my SSP ran out which I did until my pension kicked in at 60. I don't suppose there is anything she can do about it now though... I'd be spitting feathers...

monkeyspanner

Has she checked her contribution record? Has she been awarded home responsibility exemption for any time she spent raising children when not in work?

Mrs_pbradley936

monkeyspanner wrote: »

Has she checked her contribution record? Has she been awarded home responsibility exemption for any time she spent raising children when not in work?

Yes she has all the credits for those years. I don't know that she will get pension credits - they are homeowners and her husband is still working. They are making inquires about whether it will be a good idea to pay to make up the credits. If she will pay tax it may not be!

seven-day-weekend

tanith wrote: »

What a shame the HR department of Tesco didn't inform her when she was medically retired... I don't know if they have a real responsibility to do this or not but it would of been helpful if they had...
I was in a similar position at 57 and was told I could claim Incapacity Benefit once my SSP ran out which I did until my pension kicked in at 60. I don't suppose there is anything she can do about it now though... I'd be spitting feathers...

Yes, my husband knew when he took early retirement from Teaching on Health grounds that he could claim Incapacity Benefit. Both his headmaster and the Union rep told him.

I feel sorry for your friend but did she not wonder how her 'stamp' was being paid?

McKneff

Sorry if this is rude i dont mean to be, but i thought it would be common sense to know (at her age anyway) about these things. Its a pity she didnt realise about it a few months ago because the price of the buyback stamps went up dramatically.