The economics of an older partner

wotsthat

If in a marriage the older partner has not built up any pension savings then divorce might be lucrative. Say the younger partner is 49 and the older partner 54 then after the 'divorce' the pension is shared and next year the older partner can take 25% of their share tax free plus income up to their tax allowance too.

Even if they're the same age but there's a tax allowance not being used a divorce followed by pension sharing might make sense.

remorseless

wotsthat wrote: »

If in a marriage the older partner has not built up any pension savings then divorce might be lucrative. Say the younger partner is 49 and the older partner 54 then after the 'divorce' the pension is shared and next year the older partner can take 25% of their share tax free plus income up to their tax allowance too.

Even if they're the same age but there's a tax allowance not being used a divorce followed by pension sharing might make sense.

According to ONS:

Latest statistics (published December 2012) estimate that 42% of marriages in England and Wales end in divorce. It is also estimated that: 34% of marriages are expected to end in divorce by the 20th wedding anniversary.

That's a really fat chance!!!!! What about prenups? How does it work in the UK?

wotsthat

remorseless wrote: »

According to ONS:



That's a really fat chance!!!!! What about prenups? How does it work in the UK?

That's the thing. With so many people getting divorced anyway the odd strategic divorce for tax reasons won't draw any attention.

I don't think prenups have really had any basis in law in the UK and, anyway, most people getting married in the UK don't expect to be part of the divorce stats.

chewmylegoff

wotsthat wrote: »

That's the thing. With so many people getting divorced anyway the odd strategic divorce for tax reasons won't draw any attention.

I don't think prenups have really had any basis in law in the UK and, anyway, most people getting married in the UK don't expect to be part of the divorce stats.

Getting divorced for tax reasons is a perfectly legal tax avoidance strategy anyway (as is getting married to benefit from the married couples allowance although as it is peanuts it's not worth it).

wotsthat

chewmylegoff wrote: »

Getting divorced for tax reasons is a perfectly legal tax avoidance strategy anyway (as is getting married to benefit from the married couples allowance although as it is peanuts it's not worth it).

These days it's best to keep tax avoidance on the hush hush. You never quite know what Twitter is going to go 'Cecil the Lion' about next.

chewmylegoff

wotsthat wrote: »

These days it's best to keep tax avoidance on the hush hush. You never quite know what Twitter is going to go 'Cecil the Lion' about next.

A good point. We're all only a social media overreaction away from being stoned in the street for the crime of posting something in the wrong sub forum on MSE.

borkid

HappyMJ wrote: »

I've effectively retired now as I hardly work, I am not looking for work and have no children to look after.

It gets quite boring at times so you need something to fill your day and give you a reason to get up in the morning. Browsing the MSE forums does get a bit boring after a while.

Many retired people around here have an allotment they care for which takes quite a bit of time out of the week.

You could go on day trips once or twice a week. I do that once a week just get on a bus and go somewhere for the day. It doesn't need to be expensive.

If your mortgage is paid and all your debts are paid off and you've got a little cash in the bank then I don't see why I should continue working. There's no need. Keep an eye on your savings to make sure they will last until you get your pension. You might need to take a part time job if they fall too fast. Take something you enjoy though...don't take another stressful job.

If you're bored you need to take up a hobby or start learning another skill. I think of my retirement as another 'career'. When I was younger I really wanted to study music I'm now learning to play guitar, I meet people of all ages through going out and playing and I am never bored, there is always a new challenge.

michaels

wotsthat wrote: »

If in a marriage the older partner has not built up any pension savings then divorce might be lucrative. Say the younger partner is 49 and the older partner 54 then after the 'divorce' the pension is shared and next year the older partner can take 25% of their share tax free plus income up to their tax allowance too.

Even if they're the same age but there's a tax allowance not being used a divorce followed by pension sharing might make sense.

Interesting...so in that case perhaps only the higher rate earner of a couple should make pension contributions which could then be shared out by means of a divorce (followed by remarrying if desired). It could also help with the individual lifetime pension pot limit.. I think this could be my most audacious tax avoidance yet beating salary sacrifice down to the maximum tax credits level

chiefie

Good point ! It was before I. Et hr she was a stay at home my, nothing wrong with that but by her own admission it was a lifestyle choice not to work not a necessity