what happens to pension

fender2000

if i dont take my pension before i die will my wife get it and if she dies will it be transferred to my children

RichandJ

Which pension:

State ?

Company ? Final Salary or Money Purchase ?

Private ?

Without knowing that no-one can help.

fender2000

it is a private pension

RichandJ

OK, then hopefully one of the experts will be along shortly. I'm not qualified to opine.

dunstonh

it is a private pension

I am going to assume personal pension by that (and not retirement annuity contract, EPP or S32 buy out bond)

If it has non protected rights, then the full fund value is paid out on death. If it has protected rights, they are required to pay a dedependents pension. Protected rights are being abolished in money purchase schemes next year and will be reclassified as non-protected rights. So, don't die until after that

RichandJ

dunstonh wrote: »

I am going to assume personal pension by that (and not retirement annuity contract, EPP or S32 buy out bond)

If it has non protected rights, then the full fund value is paid out on death. If it has protected rights, they are required to pay a dedependents pension. Protected rights are being abolished in money purchase schemes next year and will be reclassified as non-protected rights. So, don't die until after that

:rotfl:

But just to be Mr P E Dant (& have enough characters to post), what are dedependents ?

dunstonh

dedependents

Its chilly here and I am shivering.

gadgetmind

dunstonh wrote: »

Protected rights are being abolished in money purchase schemes next year and will be reclassified as non-protected rights. So, don't die until after that

That's rather encouraging. I feared that HMG might have their eye on protected rights pots, and either try and confiscate them, or penalise those who opted out in some other way, when/if the flat rate pension comes along.

RichandJ

gadgetmind wrote: »

That's rather encouraging. I feared that HMG might have their eye on protected rights pots, and either try and confiscate them, or penalise those who opted out in some other way, when/if the flat rate pension comes along.

That would be so complex as to defy belief. Although if it did ever come to pass it would just confirm my theory that HMRC rules are made up by an embittered ex-pension administrator sacked for incompetence.

dunstonh

I feared that HMG might have their eye on protected rights pots, and either try and confiscate them, or penalise those who opted out in some other way, when/if the flat rate pension comes along.

The four previous times contracted in benefits were reduced, the protected rights were not touched.

However, there leaks of information (which so far have been mostly right based on the lesser amount of official information) which suggest that £40 of the £140 will be linked to contracted out benefits. No indication on whether its a complete loss of £40 or a scaled reduction by monetary value or years of contributions or whatever. It is also not known how they will manage it as contracting out with defined benefit schemes is different to contracting out with money purchase. Chances are they havent got a clue yet either.

gadgetmind

dunstonh wrote: »

Chances are they havent got a clue yet either.

Of that we can be sure.

I'm still smarting from the BACKDATED tax rule changes which meant that a £10k lump sum I'd lobbed into my SIPP a few months early was no longer eligible for 40% tax relief. The scumbags announced the (very complex) new rules, then made up some more (even more complex) new rules and tried to pretend these had been the rules all along.

Despite HMG and their deceitful tricks, I am still managing to get tax/NI relief on nearly all of my pension contributions, but it just cost me £1800 in accountancy fees just to have my plans regards this and CGT for the next few years sanity checked! Oh, and I'm just a wage slave - it must be hell for anyone who's self employed and/or running a small business.