How Should my mum claim her state pension ?

rossiboy001

Hi my mum has just been informed that she can leave her job this week , thing is she is 64 and I believe she should have claimed state pension since 60 but has not .
Secondly I understand although I can may be wrong , she will receive a reduced state pension because she only has 31 years of national insurance payments , although this is ok now for full , i think she has to show 39 years worth .
however the extra 4 years of not claiming , i believe she can take this as a lump sum ,
But if she doesnt i think she can use this to enhance her pension , Though if she does this , will she be able to claim pension tax credits ,
Therefore would she basically be throwing those 4 years worth away , if tax credits top this up , but wont if that sum brings her pension value up ?
She also will get a company pension 11k a year i believe , and some money for leaving , will this affect her state pension , how should she claim ?
Im having to find all this out for her , because she has no idea what to do , so its kinda a crash course for me to try help , since her redundency letter .
Many thanks in advance for any help ?

jem16

rossiboy001 wrote: »

Hi my mum has just been informed that she can leave her job this week , thing is she is 64 and I believe she should have claimed state pension since 60 but has not .

She probably would have been able to yes.

Secondly I understand although I can may be wrong , she will receive a reduced state pension because she only has 31 years of national insurance payments , although this is ok now for full , i think she has to show 39 years worth .

Anyone reaching state pension age before April 2010 needed 39 years for women and 44 years for men. After April 2010 it dropped to 30 years for all.

Technically for your mum it would have been 39 years then so you will need to check on her position as I don't know if it's the date she should have claimed or the date she does claim that's important. Does your mum have any HRP if she was at home looking after children and not working?

however the extra 4 years of not claiming , i believe she can take this as a lump sum ,

Normally yes.

But if she doesnt i think she can use this to enhance her pension ,

That would also be an option.

Though if she does this , will she be able to claim pension tax credits ,
Therefore would she basically be throwing those 4 years worth away , if tax credits top this up , but wont if that sum brings her pension value up ?
She also will get a company pension 11k a year i believe , and some money for leaving , will this affect her state pension , how should she claim ?

It won't affect her state pension but it would affect pension credits. At £11k she wouldn't be eligible for pension credits.

Suggest you read this page and get it sorted out.

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_183111

rossiboy001

Thanks for the reply . Sorry I dont know what HRP is , though yeah she spent her time bringing up children , however she never claimed any benefits during this period , has never claimed anything before , thats why she doesnt know how to go around anything .
Whilst she was bringing us up , it was financed entirely from savings . rent , food , council tax ect , even though i guess she should have claimed ,
perhaps then she should use that to enhance her pension back up , or is the benefit minimal , and better to take the lump , if the difference is like £2 a week ect ? and just live of a reduced state pension plus 11k a year private .
Also I have no clue about council tax or HB , she is in council accomodation .
Thanks again for your help .

jem16

rossiboy001 wrote: »

Thanks for the reply . Sorry I dont know what HRP is , though yeah she spent her time bringing up children ,

HRP is Home Responsibilities Protection and was credited to the person who stayed at home to look after children. It was automatic provided they were in receipt of Child Benefit.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Caringforsomeone/DG_10018691

What it did was reduce the number of years NI contributions that were needed.

however she never claimed any benefits during this period , has never claimed anything before , thats why she doesnt know how to go around anything .
Whilst she was bringing us up , it was financed entirely from savings . rent , food , council tax ect , even though i guess she should have claimed ,

HRP wasn't a benefit so no need to actually claim then.

perhaps then she should use that to enhance her pension back up , or is the benefit minimal , and better to take the lump , if the difference is like £2 a week ect ? and just live of a reduced state pension plus 11k a year private .

Have you read the link I gave you? There was also a link to state pension deferral.

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_10027570

Also I have no clue about council tax or HB , she is in council accomodation .
Thanks again for your help .

I doubt she will be be eligible for many benefits as she will have at least £16k income ( £11k private plus at least £5k state, possibly more)

However she can check here.

http://www.direct.gov.uk/en/Diol1/DoItOnline/DoItOnlineByCategory/DG_172666

First thing to do is claim her state pension and see what she will get.

rossiboy001

Thanks , been reading this , ill have to look into it , I dont think she even claimed child benefit , When we were young we lived soly of the value of her mums house which had to be sold , as there was no will , that supported everything until it was spent .
the 1% every 5 weeks increase if you put of claiming surly has a threshold , overwise thats a very big increase in state pension indeed , far in excess of the standard rate if not claimed for 4 years .
at 5k a year , thats a 20k lump sum as it is, dont know about tax though .

atush

Don't know of anyone who didn't claim CB?

I think it was called something else way back though.

Newly_retired

The lump sum will be taxable won't it? As is the pension she receives which is above her personal allowance.
If she is in good health and has good genes which suggest a long life ahead of her, I would go for extra pension rather than a lump sum.
I did not have full State pension, and was not eligible for any HRP as my years weren't the right ones for claiming it and also because I worked part-time so I couldn't claim.
Anyway, the extra state pension awarded for deferring for 2 yrs has inproved my state pension and I am glad I did it that way.
DH is deferring as he is stilll working. He is going to take the lump sum option and it will help towrds changing his car.
So it is up to you.
But with an £11K occupational pension you will not be eligible for any means-tested benefits.

Newly_retired

Child Benefit used to be Family Allowance.
It's all I got back in those far off days. No tax credits then.

rossiboy001

Thanks for the additional replys , I have since had a conversation , and it appears she did actually claim it , from when it started , though , obviously she does not have any paperwork to prove this , since it were somewhere between 1977 and 1979 , but i guess DWP will know , so she might just come in the 39 year rule . , It was the only thing she ever claimed in her life .
So from what you said with an 11k pension , there is very little help she may have with HB or council tax , So the issue wherever she adds the 4& half years unclaimed to enhance , or as a lump sum , it wont have any bearing on these two bills ?
For the record she has a number of ailments , brittle bones , asthma , and osteopharosis , she was given something about help , to stay in work , but never claimed . I dont know if there are any disability premiums she should add , but for now , the pensions are important to at least keep the roof over her head .
thanks again its much appreciated .

dzug1

How to claim is very easy - just ring the Pensions Service on their freephone number and they will take her through a series of questions and process her claim. Gather a few details - NI number, employer's name/address, tax reference, date of marriage, etc and it's plain sailing

The difficult bit is whether to take the enhanced pension or the lump sum that she is entitled to because she has deferred and that's really a question only she can answer. It has no bearing on entitlement to benefits, but it does affect her tax position - another can of worms

Newly_retired

Once she may be eligible for attendance Allowance if she has care needs. .
Or if she acts fast, before she is 65 she may qualify for DLA.
These are not means-tested, nor taxable.
Unless she gets one of these she is not going to get any disability premiums.