Are pensions capital?

xylophone

You are over 55 so have been given your foundation amount- it is made up of basic state pension plus a certain amount of Additional Pension- this will have been calculated by subtracting your Contracted Out Deduction from the ASP you would have earned had you not been contracted out for certain periods of your working life.

Your Foundation Amount is less than the full new state pension - you are therefore in the position set out on page 9 of https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

r_i_c

atush wrote: »

How many years Nics do you have (should say on t he form)?

You'll need 35 years for the basic part of the SP (116 a week?) and the rest will be S2P and serps. So the min you will get in the new system is 133.56 a week, and if you work or claim benefits after april 2016, you will add more pension (just over 4 quid per week) until you get up to the full rate.

There will also be the possibility of buying more SP for a sum, but I dont know what the rate will be.

Okay thanks,

The statement says I have "38 qualifying years".

if you work or claim benefits after april 2016, you will add more pension

What about now though, between June 2015 and April 2016?

...............................................


The gov.uk page also says that if:

"You’re a man born after 5 April 1951...You have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016."

https://www.gov.uk/voluntary-national-insurance-contributions/deadlines

So if my teacher pension comes in at March 2016, and for some reason I don't get NICs between now and then, I can pay voluntary contributions to make up for this, until April 2023 ~ in other words, I could pay for missing NICs next March/April, if I have the funds so to do?

xylophone

https://www.gov.uk/voluntary-national-insurance-contributions

You already have more than enough years to qualify for the full basic state pension under the current rules - 30 - you can't buy additional state pension and you have more than the 35 years required under the new scheme.

The reason that you do not have a full single tier pension shown under the new scheme is that you have been contracted out as previously explained - even though you have more than 35 years, you can increase your entitlement as explained on page 9.

I suggest you read through the links again and then if necessary, seek further clarification by phoning the DWP.

r_i_c

xylophone wrote: »

- even though you have more than 35 years, you can increase your entitlement as explained on page 9.

I suggest you read through the links again and then if necessary, seek further clarification by phoning the DWP.

Thanks, I have gone through page 9 and followed the link there. I guess I can only do what you suggest and phone the DWP.

What a business :-o

Thanks again

[thumbs up]

Yes, I phoned them - they said to phone them again after the new scheme comes in, after April 6, 2016. They will then advise me on how to add to my State Pension and hopefully bring it up to the full rate.

r_i_c

Hi,

The NICs towards my State Pension seem to be up to date. If probate is (hopefully) granted and my capital exceeds the DWP upper limit, JSA will no longer apply (benefit/s) and continuing to sign with JSP will only earn me NICs which I no longer require for the State Pension.

What would I do in this situation please?

Thanks.

r_i_c

jamesd wrote: »

If the money is part of her estate then it will count as capital and you will be treated as still having it and able to obtain around 10% of it as income each year. This is called "notional income".

Have returned to this thread after several months. I applied for JSA(C) but the staff at JCP said I wouldn't cope and to see my GP. I was subsequently signed off due to 'sudden bereavement'. Things have been anxious, mum's pet was diagnosed (she is ancient) with renal failure and brain deterioration, so there have been plenty of vet visits, medication and bills, but the dog is stable now, if sustained on medication.

If you can tell us more about the amounts we can probably tell you how to generate a fair amount of income from it. For the time period until you reach state pension age it probably is possible to take 10% or more of the amount each year as income. That might make benefits unnecessary for you. Knowing how much your state pension will be and about any other pensions or savings and investments you have could let us put together a workable financial plan.

Thank you kindly. Is this thread still active please? I phoned my local Registry today & they told me the grant is imminent, so things are moving after some two months, it looks like things are finally moving, I have been in limbo since May.

Yes, I retire in spring next year, I had no idea. The state pension people told me I have actually over-subscribed on NICs so there are no gaps, which is a relief.

The TPS is particularly interesting as it seems likely that you are in the part of the scheme that has a normal retirement age of 60. That would provide very helpful extra income! Best to ask them to tell you what to expect and confirm that you're in the age 60 group. There's a lump sum option but this is one of the ones where it's a very bad deal to take the lump sum. It's usually cheaper to borrow and repay from higher income than take a lump sum from TPS.

Think I have all the figures now but where should I begin please? Because I filled in the IHT forms myself I have kept a note of all relevant estate figures. I will lose benefit entitlement due to capital when the grant is issued; how best to invest what I then have in order to gain interest from it? I understand there is a cap on what you can invest into an ISA, which limits options for me perhaps?

Many thanks

xylophone

Are you now on ESA (C)? http://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based

What do you estimate your capital will be after probate is granted?

Will you then own your late mother's house outright?

You have calculated how much you will need to pay for Council Tax/house insurance/utilities etc?

Have you looked at opening a Santander 123 account?

What income do you expect from the TPS from next spring?

r_i_c

xylophone wrote: »

Are you now on ESA (C)? http://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based

What do you estimate your capital will be after probate is granted?

Will you then own your late mother's house outright?

You have calculated how much you will need to pay for Council Tax/house insurance/utilities etc?

Have you looked at opening a Santander 123 account?

What income do you expect from the TPS from next spring?

Will get back to you, late now. Not ESA, because I have been signed off under 13 weeks I am still on JSA(C). Yes, I am to have the deeds transferred to my name, the deeds are already with the solicitor. Funnily enough, I already have a Santander account, I have been with them since they were the Abbey National. No, I haven't yet calculated all the outgoings because the Registry only told me a matter of hours ago that the grant was about to be issued. But I will come back with some figures in a while. Many thanks!

atush

You may have a santander acct that is not a 123 acct- which is the one that pays better interest.

So do see about switching your acct?

r_i_c

atush wrote: »

You may have a santander acct that is not a 123 acct- which is the one that pays better interest.

So do see about switching your acct?

Thanks. Am going to have to make some decisions about where capital goes. If I am prevented from investing more in shares by the ISA cap, then I need to find other ways of generating interest?

I presume the cap covers all ISAs from any number of firms offering them? Mum had several ISAs spread over at least two separate companies.

It just seems crackers to me, I will be closing her investments only to convert them into estate lsd ~ only to re-invest again: uneconomical & 'through the looking glass'.

Thanks.