Are pensions capital?

r_i_c

jem16 wrote: »

It will be around £6500pa pension and almost £20k tax-free lump sum.

Sounds like it will cover more than just some direct debits.

That's about £135 a week? I need to do my DD sums but being so recently and unexpectedly the owner of mum's late home - after probate is agreed - things are a bit of a blur at the moment. The lump sum will be a boon indeed, something else I didn't expect - certainly not before 65 (the old age) and 66 (the new age) for state retirement :shocked:

r_i_c

gadgetmind wrote: »

Don't be so sure. Given the very low levels of unemployment, and the rebound in the economy over the last few years, employers are getting desperate and are having to fight over anyone with even basic skills.

Well we shall see. I need some advice (on a new thread?) about my options. I am a qualified art teacher, I would have thought the 'leisure industry' could find a place for me, but I don't know where to start looking. I have O levels and A levels, I am wasted as unemployed but after chasing employment some years ago the prospects were bleak, I was offered a job serving coffee but I failed the interview because they said I was 'over qualified'. I'm sure there's a niche for me somewhere though :huh:

r_i_c

jem16 wrote: »

I'm sure you don't mean £59k per annum. If the estimate was £5.9k per annum it agrees more or less with my figures.

Yes sorry, £5.9k pa.

r_i_c

robber2 wrote: »

There is no requirement to draw from your SIPP at State Retirement age !

robber

That is useful to know - many thanks!

cte1111

Each of your pensions are likely to have different rules about when you can claim them. It sounds like your Teacher's pension will be available from when you are 60. Once you've got time and energy, I would contact them to start the ball rolling and confirm exactly what you are likely to receive and when.

You state pension (and second state pension) is an entirely different ball game. You can contact the government to ask for a pension prediction, in order to try and plan how you will manage financially in the future. https://www.gov.uk/state-pension-statement

How much of a lump sum are you likely to receive from your mother's estate? It might well be that you can live off your teacher's pension plus use up your TP lump sum and your inheritance to bide you over until the state pension kicks in.

In terms of paying in to a pension now, everyone can pay up to £3600 in to a pension each financial year and get credits equivalent to 20%. This would mean that you can pay a net amount of £2880 into a pension this year, which the government will then bump up to £3600. You can then access this at a later date for more income (or just cash it in under the new pension rules).

Employment - is supply teaching an option? Maybe something to look at when your life is a bit more settled. Other ideas related to that include exam marking, invigilation at local schools and colleges or even working on election day as a counter etc.

The CAB is correct in that if you need to claim benefits in the future and you have spent your inheritance, then they might look into how it was spent. However I would think that you will be above the threshold for many income related benefits anyhow, given your likely pension income in the future. I wouldn't let this stop you making plans on how to use the inheritance to best improve your life currently. Spend some, save some and give some away, or however it will work for you.

r_i_c

cte1111 wrote: »

The CAB is correct in that if you need to claim benefits in the future and you have spent your inheritance, then they might look into how it was spent. However I would think that you will be above the threshold for many income related benefits anyhow, given your likely pension income in the future. I wouldn't let this stop you making plans on how to use the inheritance to best improve your life currently. Spend some, save some and give some away, or however it will work for you.

Thanks & will reply more fully later. You might laugh but my biggest concern right now is to see that mum's little dog has enough to eat, that's why I drew down £2.5k from my SIPP. That keeps me hopefully going through the probate period whereby I can make basic provision for myself and the needs of the dog, who is rather old, and now fretful. Food is the basic thing I can provide to keep her spirits up

gadgetmind

r_i_c wrote: »

I am wasted as unemployed but after chasing employment some years ago the prospects were bleak, I was offered a job serving coffee but I failed the interview because they said I was 'over qualified'. I'm sure there's a niche for me somewhere though :huh:

Yes, separate thread. But my wife, who has a degree but in a pretty irrelevant arts subject, got a job at first try working in a local stately home despite a 20 year career break. Despite (or because of?) being council run, they really struggle to get anyone good and to retain them.

r_i_c

gadgetmind wrote: »

Yes, separate thread. But my wife, who has a degree but in a pretty irrelevant arts subject, got a job at first try working in a local stately home despite a 20 year career break. Despite (or because of?) being council run, they really struggle to get anyone good and to retain them.

Ah, yes thank you - am looking for ideas as much as anything else. I have quite a passion for history so something like that might suit me very well. Was the job part-time or seasonal please? Or did she go in right away at executive level? I'm just trying the water. Part-time would help me care for mum's pet, as well as generating some extra income

r_i_c

jamesd wrote: »

Definitely do that. The Pru is particularly interesting because we didn't know about it and it's another nice piece to add to the solution to your income needs. It's possible that like the SIPP you might be able to take the Pru money before age 60 if necessary.

Thanks, have now written to the TPS and Prudential. Have also sent a web enquiry to http://www.pensionsadvisoryservice.org.uk/contacting-us/online-enquiry-form asking for a state pension estimate and whether I have contributed enough NICs or what to do if I haven't? Will update

jamesd

Thanks, yes. Once you know more I or someone else can update the income planning. Hopefully you'll find some interesting local job that pays decently as well, particularly if the current income plan isn't as much as you'd like.