Tiny Occupational Pension

seven-day-weekend

I have just worked out that on today's rates my combined State and Occupational Pension will be £128 per week. It is made up of £86.35 pw State Pension (including £4.95 additional pension) and £41.86 pw Occupational Pension.

I was in the Local Government Pension Scheme but only paid into it for just under ten years. Also, I can't draw it until I am 65, without it bcoming even less!

Am I correct in thinking that had I not bothered, I would have had my pension made up to £120 pw anyway by the Government with Pension Credits? I could have claimed these from age 60 (Born January 1950). Or wouldn't I get the Pension Credit because I am married?

If the above is accurate, I have paid all my pension contributiions for less than £8 a week!:eek:

OH well. I suppose you pays your money and takes your choice.....At least I suppose I don't have to rely on a tax break that could be taken away. Bit disheartening though!

EdInvestor

Not many years of course. Is tax-free cash accounted for? I assume it's index linked for inflation? Spouse pension as well?

Pension credit is worth 114 quid for a single currently, less per person for a couple, it depends on household income. It does "passport" you to free council tax and housing benefit as well, if appropriate.All means-tested of course.

It can often be the case that's it's not worth people on low earnings saving for a pension, but I'd have thought you'd end up better with a Govt pension.However less thaqn 10 years isn't long.

seven-day-weekend

I only went back to work full-time when I was 45 and worked until I was 54, the last two years part-time. I 'bought in' 1.5 years using my AVC fund.

Yes it has a tax-free lump sum of (on today's values) of £5.5k. Yes it is index-linked. Yes there is a pension to my spouse (half) should I die before him.

So actually I suppose it is better than Pension Credits. We would not be eligible for CTC (too much joint income/savings) or HB (own property).

Thanks for your reply. It's made me feel much better!