Great Things To Know Before You Retire Hunt

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  • laserblue_2
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    merched99 wrote:
    This might save you thousands if you are being made redundant and are lucky enough to have a final salary pension scheme. You can put any redundancy payment above £30,000 (which would normally be taxable) into your pension, and get it straight back again tax free under the rules about converting part of your pension to a lump sum -- but ONLY if you are eligible to draw your company pension. For some reason (at least with my scheme) they can't tell you about it unless you ask....... In my case I was going to leave a few months before turning 50, and would have had to pay tax at 40pc on the lump sum. Found out by chance about this, and have now got agreement to stay the extra few months until my 50th birthday so can take advantage of it.
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    Your circumstances and mine sound very similar. I'm 49 turning 50 at the end of the year and can stay till then if I want to. Can you explain why your suggestion doesn't work if I leave before I'm 50? Can't you put the excess redundancy money over £30k into the pension pot and then take out the lump sum a few months later when you reach 50?
  • Jeanne
    Jeanne Posts: 47 Forumite
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    jassie wrote:
    I too would agree that paying the full rate NI was a good decision for me although I have not quite reached retirement yet, and won't get a full pension due to time off bringing up a child, I will still get more than if I relied on my husband's contributions. What I don't understand though is that although I have been working part time for the last few years and been credited with NI contributions I have been told that I have some years where I should make up a shortfall. I have earned over the annual limit but not the monthly limit. Many enquiries to the NI office have brought mixed advice!
    I also paid the full stamp until I left work to have my first child at the age of 33. I never returned to full time work, helped my husband with his business and did not pay any NI contributions again.
    When I was 60 I got almost a full pension as the years bringing children were credited. At the time it was until age 11 but I believe this is reduced now. In my 16 and a half years of working I had no stamps missing and because you are allowed some, they credited me with 19 years and then I was credited with a further 19 years whilst bringing up children. There was 10 years difference in age between my eldest and youngest. 19 years was the maximum I could be credited. I was also able to pay one year of contributions, but this was after the pension had started being paid and was deducted from what was owed, so in effect it cost me nothing. This gave me 39 years out of a possible 42 to qualify for a full pension. I get £343 a month
    It made me feel good that my years of childrearing were seen in a positive way.
  • pmd
    pmd Posts: 65 Forumite
    First Anniversary Combo Breaker
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    At present, to get a full state retirement pension you need 44 years NI contributions if male, 39-44 (depending on age) if female.

    BUT the government are considering a change which will bring it down to 30 for everyone. See http://www.hmrc.gov.uk/nic/vc3-important.htm .

    I had been planning to pay 6 years class 3 stamps after retiring early, but will now not do so unless this change has not materialised by 2014 when I become eligible for my state pension at 62y 8m (they are increasing pension age for women gradually over the years to catch up with men).

    So if your contribution record shows a shortfall at present, you might like to hold back on paying any class 3 stamps.
  • Happy_2-2
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    Make sure you seek good finacial advice to ensure you make the right decision for you and your personal circumstances. Plan well ahead its supprising how quickly 12 months passes.
  • cazrobinson
    cazrobinson Posts: 177 Forumite
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    i am paying into a pensonal pension (avr. 2,000 a year for pension) at the moment. i am 32. my hubby is a house-husband and is getting the home thingy (so he is getting his NI paid, while he is child-rearing). he has a small pension from when he was working (avr. 1,500 a year pension).

    is there anything else we should be looking at for pension/retirement as £4,000 (at best) for both of us doesn't seem like much!
    What goes around - comes around
    give lots and you will always recieve lots
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    You should both get state pension forecasts first from https://www.thepensionservice.gov.uk ,as your understanding of how much they pay out isn't correct.

    If you are a basic rate taxpayer and do not have a company contribution to your pension you may be better to contribute to the maxi stocks and shares ISA, which is a lot more flexible, and will produce tax free income when you retire, unlike a pension which is taxable.
    Trying to keep it simple...;)
  • margaretclare
    margaretclare Posts: 10,789 Forumite
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    Just a further comment from my reply to GB (no, not THAT one!!) in post 80. We got the new combi boiler in January this year, it was done under the WarmFront scheme. Under that scheme you have to be claiming a benefit of some kind, and I receive AA. We wouldn't have qualified on grounds of income, but that WarmFront grant is worth £2,700. So boiler all done, hall re-carpeted now no workmen coming in any more, next job is to get the front drive re-surfaced because it's uneven and risky. We're surrounded by builders but they all have more work on than they can handle, hopefully we'll get it done as a weekend job.

    Regarding women paying full NI contributions, this was one of the best choices I ever made. It means that I get full state pension based on my own contributions. Given that I was widowed and remarried, it doesn't depend on a husband's contributions, and that's quite important to me.

    Re the question of house needing to be sold if the remaining spouse in this marriage has to go into care. Now we have no mortgage to pay, AA, annuities, SERPS, we're able to save! The 'lifetime mortgage' i.e. equity release will be the 'first charge' on the property, any council claim can be second. And no, we're not looking to leave inheritances behind - not a priority at all, although the likelihood is that there will be some, split among the 5 grandchildren (3 of mine and 2 of his).

    Margaret
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • aloiseb
    aloiseb Posts: 701 Forumite
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    kittie wrote: »

    At 55 start clearing your loft and garage of all the things that you put away for the children. Take a room at a time and drastically de-clutter and perhaps start to prepare for downsizing because it is achingly, physically hard work and very difficult to do at 70

    Get hobbies to help the psychological transition to retirement

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    Ermmm...will still have kids at home when I am 55 - loft will probably be full of teddies and I won't be needing any new hobbies as no doubt taxi-driving and meal provision service will continue to take up any spare time.
    Definitely thinking about a second property though, could be useful if it all gets too much.....

    Where did I go wrong??:rotfl:
  • meconopsis
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    Leonie wrote: »
    I took my small company pension and lump sum at 50 when I was made redundant nearly 5 years ago - it and the redundancy payment paid off my mortgage and debts and let me downshift to a less demanding position until retirement. I've stayed debt free since then, but it's a bit of a struggle.

    I've had government pension statements, all of which say I have enough 'credits' for a full pension +some Serps and a tiny amount with Equitable (what a fool I was!). However some of the government pension is dependent on my ex-husbands contributions, from when I was child raising - we've been divorced for 20 years. Does anyone know what would happen if I re-married - to a younger man? Would I lose part of my pension?

    It's not going to be generous anyway, probably with all things thrown in - about what I get now, working part time so that I can spend time looking after my grandsons - which doesn't allow for extras like holidays, or new cars. and I have no savings - only the house.

    I've never really had spare cash anyway, so it's no big deal if I'm still as skint as ever, but I do like to plan ahead. Any advice welcome!

    Sorry, didn't mean to quote everything, but I'm new to this.

    If you do marry a younger man BEFORE you start to draw your State Pension, you will lose the entitlement to the part that's dependent on your ex's contributions. Unless you really feel you MUST, you'd be better off just living together at least till you reach retirement age. My partner is younger than me, and I don't feel the need to marry him. We have made wills in favour of one another though, and decided on what will happpen to our respective shares of the house when one of us dies. I never had any spare cash either, bringing up two children after my divorce, but am very happy wth my lovely partner of sixteen years. Good Luck Leonie!
  • Lyvias_2
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    The retirement thing!!!
    My husband took early retirement on health grounds aged 57. Big mistake. He is now able to work part-time and would have been much better off to have taken long-term sick leave then he could have kept his job and probably returned to full time work. Part-time is because ill-health pension restricts what work is allowed or pension is lost.
    We had no advice or guidance and I certainly wish someone had explained this to us. I am also on pension.
    Thanks for this site. Lyvias
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