Parents moving back together again

memecoughlin

I hope someone can help us on this forum.

My parents, aged 75 and 72 have been separated for many years and have each drawn down state pensions as single people.

However, just recently, and much to the joy of all of us, they have patched their relationship and are considering living together again.

The one issue that is confusing hem both however is how this move will affect their state pensions. They do not have access to the internet for information. I have looked on their behalf but have found the process very confusing as most of the info concerns the proposed changes for 2017.

My mother currently receives a full state pension having paid NI contributions all her life- she receives £616 per month. My dad was self-employed and so he receives £108.72 state pension per week and £21.53 pension credit. They are not wealthy people and do not have any savings. My mum lives in the bungalow (owned outright) that she inherited from her mother and my dad lives in (paid for) rented accommodation.

Please would somebody be able to throw some light on how their state pensions would change if my dad moved in with my mum.

Many thanks.

margaretclare

They'll both continue to draw state retirement pension based on their own contributions. In other words, each of them will continue to get the full pension that they each paid for. Your mother paid full contributions and did not opt into the 'married women's lower contribution' - good for her, one foresighted and well-informed lady. No need to worry.

The one thing that might change is the pension credit because this is means-tested and, for this, they'll be assessed as a couple and not as individuals.

Mojisola

[QUOTE=memecoughlin;59479213
My mother currently receives a full state pension having paid NI contributions all her life- she receives £616 per month.

My dad was self-employed and so he receives £108.72 state pension per week and £21.53 pension credit. [/QUOTE]

There shouldn't be any change to their pensions as they are both claiming on their own contributions.

They should put in a claim as a couple for Pension Credit - that will probably change.

Beat me to it, margaretclare!

memecoughlin

Can they continue to claim on their own contributions, even though they are married and would be living back together again as a couple? Do they have to notify anyone e.g pensions agency of their change of circumstance? The Which.co.uk website states:
"Full basic state pension for a married couple (or civil partners) for £2012-13 is £171.85. "

This would be a significant reduction of income for my folks.

Many thanks for any clarification.

margaretclare

memecoughlin wrote: »

Can they continue to claim on their own contributions, even though they are married and would be living back together again as a couple? Do they have to notify anyone e.g pensions agency of their change of circumstance? The Which.co.uk website states:
"Full basic state pension for a married couple (or civil partners) for £2012-13 is £171.85. "

This would be a significant reduction of income for my folks.

Many thanks for any clarification.

The 'Which' description is misleading. I can tell you from personal experience. We are a married couple and, as I explained above, because we both paid our own contributions we each get full SRP in our own right. When we got married in 2002 the only thing we had to tell the Pensions Agency was my change of name. Your Dad's change of address will be the only change he needs to notify.

I wish respected bodies like 'Which' and others would stop referring to a 'married couple's pension' because there is no such thing.

Pension credit is a separate issue and it's one with which I have no experience.

anmarj

memecoughlin wrote: »

Can they continue to claim on their own contributions, even though they are married and would be living back together again as a couple? Do they have to notify anyone e.g pensions agency of their change of circumstance? The Which.co.uk website states:
"Full basic state pension for a married couple (or civil partners) for £2012-13 is £171.85. "

This would be a significant reduction of income for my folks.

Many thanks for any clarification.

this would only apply if your mum pension was less than 60% in her own right, as she gets more this does not apply. Marargetclare is slighly incorrect in saying that your dad need only to noify them of his change of address, as he is getting Pension Credit he notifys them as a review of that would be required, as a chagne of address does not alert them to a change of circumstances.

margaretclare

As I said, pension credit is a separate issue. I was talking only of SRP earned by own contributions, which is the only thing I have personal experience of.

Mojisola

The proposed changes for pensions will only affect people who reach pension age after it becomes law so you can forget about that.

As said above - they will both keep their current pensions because they are claiming on their own contributions.

You could put their figures into one of the benefit checking sites as if they were living together and see what it comes up with for pension credit.

xylophone

Your mother has the right to her full state pension as heretofore.
Your father has the right to his state pension.
He is receiving pension credit because he is living as a single person whose weekly income is less than £142.70.

However, if he and your mother choose to live together as a married couple, the joint income is what will count.

It looks as though this will be well in excess of the £217.90 a week that would qualify a couple for guaranteed pension credit. https://www.gov.uk/pension-credit/overview

Presumably your mother receives a single person discount on her council tax, your father too. Clearly this will cease. Presumably too each receives winter fuel payment - the amount will change https://www.gov.uk/winter-fuel-payment/what-youll-get

The DWP and the local authority will need to be advised of the change of circumstances

http://www.ageuk.org.uk/money-matters/claiming-benefits/means-tested-benefits/
http://www.turn2us.org.uk/information__resources/benefits/people_aged_60_and_over.aspx

kidmugsy

xylophone wrote: »

Presumably your mother receives a single person discount on her council tax, your father too. Clearly this will cease.

Presumably, though, they will need to pay only one (full) dose of council tax.

margaretclare

Single person discount will cease, true, but at present they're each paying 75% and will in future pay only one amount. 75% x 2 is more than 100% x 1.

Winter fuel payment - they'll get half each. Fair enough, they'll only be heating one house, not two.