state pension planning at 62

srcandas

Hope no one minds me just offering my situation and a few simple questions as I’m reaching a critical time in my life.

I’m 63 in August and will be off to Spain (Spanish tax resident from 1/1/2016). I’ll get married to my Spanish better half in Gib before 2015 out. UK house being sold now. Have half uk limited company but dribbling into retirement. But I can work from anywhere.

My pension statement April 2015) offered 38 years of contributions and a forecast of £215 per week.

Qs: Am I correct that there is no value in accumulating further years? Even if I pay myself PAYE it would have to be small (less than £12000) as I’m pulling almost £30000 out of a SIPP and do not want to hit higher rate tax.

Qs: My wife to be is 58. If I die what if any benefit would she get from my state pension, and when?

Qs: My wife to be is paye through my company. Last year she was paid through the payroll but only earned £6500 (tough year so payments were curtailed latter half of year). Will she get a year’s state pension credit for this, does she need to top it up somehow, or buy a year’s worth of contribution?

Any thoughts gratefully received :cool:

DesG

To qualify for a year I think the required annual PAYE payment is a round 5-6000, so shouldn't put you in higher rate.

And your wife if UK Tax resident should have earned a years contribution.

You can look up the LEL (Lower earnings Limit) on the HMRC website to get the correct amount for each tax year.

99% sure your state pension dies with you. But your SIPP should be able to be transferred in full if you use drawdown.

Keep_pedalling

Congratulations on your upcoming marriage. If your future wife may be paid some of your pension depending on how many years she has qualified on her own. Not sure if being nondom has any effect on that though.

xylophone

See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

Has your wife asked for a state pension statement?



https://www.gov.uk/state-pension-if-you-retire-abroad/how-to-claim

srcandas

Many thanks guys for your time and help :beer:

My wife to be has 29 years state pension contribution in Spain and counting 2014/15 6 years here in the UK. That'll get combined in some way for the pro-rata element from each location when she reaches pension age (2024 at the earliest in Spain so a while to go).

I'm leaving £46000 in the SIPP with some other savings to see her through to her retirement age should I hop off. Don't expect anything from my UK state pension for her but stranger things happen

xylophone I'm reading that but it'll take a while for me to draw much from it. Her UK state pension statement of course offers nothing more than years contributed. However the ten year rule will not apply so we are happy between Spain and the UK she will get a reasonable state pension when we add a few more years contributions.

DesG the higher tax rate applied to me. I was thinking I could earn a lot this year and therefore accumulate additional pension (P2S ?) but as I now need to raid my SIPP (as the pound is so strong at the moment and I need to get into Euros) that is not an option. ( I have a limited company so can control my salary as required).

Keep pedalling tx for the congrats - looking forward to our trip to the rock. My wife to be is UK resident in recent years but will be in Spain from start of next year. I understand she still might be able to contribute here in the UK but if not in Spain.

Back to that document xylophone

atush

given you have a forecast of 215, so in excess of the new SP coming in next year, we can assume you have almost 100/wk as Serps/S2P.

So your wife should be able to inherit some of this, the exact amt would depend on when it was accrued but should be abt 50%.