advice for my mum

myothercarisaferrari

Evening all

Just after some advice really.

My mum is 54. She never took out a pension due to my dad telling her not to - he was in the army then the police so had a comfy pension plan.

Anyway they got divorced 8 years ao and mum wasnt entitled to any of his pensions (after almost 30 years of marriage:()

Anyhoo just wondered if my mum retired at 60 would she get a state pension? (Worked all her life) Is it worth her taking out a pension now?

thanks! X

jem16

myothercarisaferrari wrote: »

Anyhoo just wondered if my mum retired at 60 would she get a state pension? (Worked all her life)

If as you say your mother worked all her life, AND providing she did not pay the married woman's stamp ( if she married after 1978 - which from your post sounds like she did - this does not apply) she will get a full basic state pension and perhaps state 2nd pension.

She should get a state pension forecast to see what she is entitled to.

https://secure.thepensionservice.gov.uk/statepensionforecast/

Is it worth her taking out a pension now?

thanks! X

Not sure on that so will leave that to someone with more knowledge.

hugheskevi

Anyway they got divorced 8 years ao and mum wasnt entitled to any of his pensions (after almost 30 years of marriage:()

Your mum should be entitled to a full Basic State Pension and some SERPS/State Second Pension. In the event that she is not, she will be able to use her ex-husband's National Insurance record - look at:

http://www.pensionsadvisoryservice.org.uk/state-pensions/divorce

Anyhoo just wondered if my mum retired at 60 would she get a state pension?

No. State Pension Age for women is increasing, and she will not be entitled to State Pension until 65.

Is it worth her taking out a pension now?

As jem16 says, the first step is to get a pension forecast to see what your mum's position is.

With regard to whether it is worth taking out a pension now, there are a few things worth bearing in mind. The extent to which it is worth it will depend on how much she can save, but if you understand the options then it will probably be quite a good thing to do as long as you understand exactly what you are aiming to achieve and how it might interact with Pension Credit:

a) Pension Credit - this guarantees a person £130ish per week after State Pension Age and increases each year by earnings. But, it can be changed at a political whim.

b) Trivial commutation - private pension wealth worth less than £18,000ish can be commuted into a cash lump sum after the age of 60. That can make saving into a pension worthwhile even if you think that the presence of means-testing makes it not worth saving for a pension as you can take it as a lump sum. Careful of capital limits in Pension Credit though.

c) Tax thresholds - people over 65 don't pay tax on the first £9,490 of income. Normally, it is well worth ensuring that you make pension provision up to that level, but the presence of means-testing complicates the position here.

I'd get a State Pension forecast and read up about Pension Credit, then you'll be better placed to decide.

margaretclare

myothercarisaferrari wrote: »

Evening all

Just after some advice really.

My mum is 54. She never took out a pension due to my dad telling her not to - he was in the army then the police so had a comfy pension plan.

Anyway they got divorced 8 years ago and mum wasnt entitled to any of his pensions (after almost 30 years of marriage:()

This has happened to other women! I knew a woman just like this, was working as a ward clerk, within 8 years of retirement when husband took off with someone else. She'd always been told by husband 'oh we've got a good pension fund....' and she had 8 years to make something for herself. It wouldn't happen now, she'd get a share of husband's pension funds. Are you sure your mum won't be entitled to similar - I think it's called pension-splitting at time of divorce.

Anyhoo just wondered if my mum retired at 60 would she get a state pension? (Worked all her life) Is it worth her taking out a pension now?

thanks! X

She worked all her life, but what's crucial is - did she always pay full NI contributions or did she opt to pay the married women's reduced contribution? Many women have worked all their life but ended up with nowt of their own, having to claim against husband's contributions. The option disappeared in April 1978, but if she was married before then and made that choice she could have carried on with it.

Niggles

Strongly agree with margaretclare as to checking entitlement to husbands pension. Even eight years ago this was usually taken into account.
Secondly do check whether you mother was on the married woman's stamp, by implication she was married in 1972 or 73 when married woman's stamp was very common.

marklv

myothercarisaferrari wrote: »

Anyway they got divorced 8 years ao and mum wasnt entitled to any of his pensions (after almost 30 years of marriage:()

Sorry - I don't believe this. She should have been entitled to a share of your father's pensions as part of the divorce settlement, regardless of his protests. The law is designed specifically to help stay-at-home partners without a pension of their own. Of course, if she has already decided not to contest the pension, then it may be too late to do anything about this. I'm not sure if there is some rule affecting military or police pensions which makes them immune from the pension splitting law; it's possible that there might be.

Also, you don't mention if there was a cash payoff from your father to your mother as a part of the divorce - if there was, then this may have been done with the proviso that your mother could not then make claims on your father's pension. Sauce for the goose, sauce for the gander!

margaretclare

Pension-splitting was just being talked about at the time of DH's divorce in 1999 and came into force after that, so 8 years ago this should definitely have been on the table. Was it a 'clean break' divorce - if so she may not be able to go back and ask for it.

seven-day-weekend

Please note that your mother will not be able to draw any State Pension (either her from her own or her ex-husband's contributions) until she is 65, as the retirement age for women is equalizing to the same as men's.

If she worked and paid full NI she will be able to draw from her own contributions and only needs 30 years' worth. She can do this at 65.

If she is drawing from her ex-husband's because she doesn't have enough NI of her own or only paid married womens' NI, he will have to be 65. (so, for example, if she is two years older than him, she will have to wait until she is 67 to draw it).

Get a Pension Forecast here which should give her the information she needs:

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/StatePensionforecast/DG_10014008

hugheskevi

If she is drawing from her ex-husband's because she doesn't have enough NI of her own or only paid married womens' NI, he will have to be 65. (so, for example, if she is two years older than him, she will have to wait until she is 67 to draw it).

That would be the case if she was still married and drawing a category B(L) pension, but I don't think it applies in the case of divorce - my understanding is that an individual's record is adjusted to take on the characteristics of their spouse, ie they get the pension in their own right rather than drawing against the pension of their partner.

But it isn't an area I'm 100% familar with so happy to be told I've got the wrong end of the stick.

bendix

myothercarisaferrari wrote: »

Evening all



Anyway they got divorced 8 years ao and mum wasnt entitled to any of his pensions (after almost 30 years of marriage:()

Of course she's entitled to some of his pension. No offence, but if your mum acts like a doormat, she's going to get walked over. It sounds like your dad has spoonfed her all his married life and told her she's not entitled and she didnt have the gumption to challenge it.

She needs to fight for herself and screw the !!!!!!! hard.

seven-day-weekend

hugheskevi wrote: »

That would be the case if she was still married and drawing a category B(L) pension, but I don't think it applies in the case of divorce - my understanding is that an individual's record is adjusted to take on the characteristics of their spouse, ie they get the pension in their own right rather than drawing against the pension of their partner.

But it isn't an area I'm 100% familar with so happy to be told I've got the wrong end of the stick.

Yes, you may be right.