Pension, work / state?

atush

Yes, I did get that, but we can't say for sure what your LE is- as we'd have to go get a cohort LE tale then subtract some for your condition.


The main reason for minus 20yrs LE in type 1 D is not managing the condition properly incl lifestyle factors. So if you manage yours properly you could shave that in half. Add in the new things coming out yearly in the research community and I have high hopes for you.


But even if, a pension can leave your family far better off when you are gone over saving that 40 a month. there are usually Death in service benefits (incl the return of your fund tax free plus sometimes a factor of your salary =x3 is common. given your condition, this Life assurance as it were, is very highly valuable as LA for you would be more expensive due to your condition.

SantaKlaus

atush wrote: »

But even if, a pension can leave your family far better off when you are gone over saving that 40 a month. there are usually Death in service benefits (incl the return of your fund tax free plus sometimes a factor of your salary =x3 is common. given your condition, this Life assurance as it were, is very highly valuable as LA for you would be more expensive due to your condition.

Death in service benefit? In my work contract this is only £5000. And its only if it is a work related accident, ie i get shredded by the machine, as long as its not my fault ie i put the guards on lol, it'll only be paid out if its a company error ie health and safety issue etc.

Or do pensions actually have a death in service benefit too? I shall have to check for that.

Yes my life insurance is 4-5 times more expensive for me, even though i'm not insured for anything related to my condition should i die from it. So, my life insurance doesn't cover me for hardly anything medically i expect, eg heart attack, stroke... as everything can be used against me to say the diabetes was a part in it, but they still charge me a highly inflated premium for it, hopefully when i die it'll be from someone hitting me as a passenger in a car! They'd probably say i had low blood suger if i was the driver haha. Thanks Aviva. lol

kidmugsy

SantaKlaus wrote: »

I shall be joing the work pension anyway, but i'm not keen on the part i read online that if i die the pension can have 55% inheritence deduction taken from it! lol

Irrelevant: that's for people who die without leaving a widow.

jamesd

SantaKlaus wrote: »

I shall be joing the work pension anyway, but i'm not keen on the part i read online that if i die the pension can have 55% inheritence deduction taken from it! lol

For a personal pension or work defined contribution pension, like a group personal pension, it works like this:

1. If you die before taking a lump sum or income, all of it can go to anyone outside a pension with no tax charge.
2. Once you take a lump sum or income from income drawdown:
   1. your spouse can get 100% of it in a pension in their name.
   2. the spouse or anyone else can get 45% of it after a 55% tax charge is made.
3. If you buy an annuity, what happens depends on the type of annuity you buy. If you buy a single life annuity your spouse gets nothing. Buy one with a 60% spouse's pension and they get 60% of what you were getting.

The amounts are always outside the estate and not subject to inheritance tax.