Beware State Pension shock when partner dies

michaels

Rolandtheroadie wrote: »

The wife's LGPS estimate is 8k at 60, with 23 years service, or a bit under half her salary. Her AVCs will bump that up a bit.

TO buy an annuity of 8k at 60 would require a pot of about 280k so effectively on a salary of say 17k.

Ignoring inflation/salary increases over 23 years at 17k your wife has earned 391k plus a pension entitlement worth 280k or about 12k per annum on top of her salary.

If that is not 'gold plated' I don't know what is - not many private sector jobs where you get pension contributions of 72% of your gross salary

Or looked at another way, your wife was on a 'salary and pension' package worth 29k - how does that compare to the private sector equivalent of her job?

TheShape

westport wrote: »

In reply to TheShapes stupid comments. Lets hope one day your mother gets treated the way my mother was by the NHS and pension system and ends up with 18p a week pension for 45 years of contributions, then you might change your tune.

What has my mother done to upset you and how would her being poorly treated be of any benefit to your mother?

Your post could have been informative as to why your mother ended up with a pension of 18p? per week but it ended up being a rant about the council, unions, NHS, non-english speakers, health tourists, government, drunks, coke-heads and scroungers.

Somehow, all these people are responsible for your mother's pension provision or lack off.

borkid

atush wrote: »

I did initially when i moved here. I had no record of working int he UK, and was raising 3 children under 5 so couldnt earn enough to work (even with a degree). I would have earned a full SP under my husbands contribs.

But I did know when the new SP was being drawn up, that would no longer be the case. So am now making voluntary contributions. No shock involved, as I keep up to date with such important matters.

What the OP should concentrate on, is making employer or Private pension contributions. Which if DB you would inherit around 50% of a spouses pension (depending on the scheme), or if DC you would inherit the whole lot, tax free.

Did you have an NI number even though you didn't work. When I was a SAHM I was credited with the number of years I claimed child benefit ( I think that was it).

The bolded part I find confusing as I started work when there was still the married woman's 'stamp' but chose to opt to pay the full stamp as the other way I wouldn't be entitled to some things. I thought it was a reduced pension. Having said that it was 43 years ago.

I actually do find it wrong that people male or female who haven't paid into the system could claim a full pension just based on their spouses contribution. Caring responsibilities I can understand the state crediting years or if the person is too ill to work that is a differnet situation. I always thought SP was contribution based.

xylophone

https://www.ifs.org.uk/bns/bn105.pdf

Enjoy.........!

Muscle750

And why do we have no plod working past 55 .................oh thats right its something to do with the pension

hyubh

Muscle750 wrote: »

And why do we have no plod working past 55 .................oh thats right its something to do with the pension

Please, don't go all public on your marital insecurities... it's embarrassing for us, let alone yourself. Perhaps Mrs Muscle can give you pocket money once you both reach retirement...?

westport

TheShapes, your mother has done nothing to upset me. I was simply trying to get you to open your eyes and put your mother in the position my mother ended up in through no fault of her own like tens of thousands of other women in the 70's that were put on the married woman's stamp and ended up with 18p a week pension. Maybe you are not old enough to know about this. As for my so called rant, I was suggesting ideas where money could be raised to help pensioners, their carers, reducing the waiting times in A&E and the nurses. Is it any wonder morale in the NHS is at an all time low and nurses and carers are leaving in their droves. Getting the drunks and crackheads to pay for it through automatic fines seems like a good idea to me and the hospital trust CEO I spoke to, unless you have better ideas on how to care for pensioners.

Pollycat

westport wrote: »

TheShapes, your mother has done nothing to upset me. I was simply trying to get you to open your eyes and put your mother in the position my mother ended up in through no fault of her own like tens of thousands of other women in the 70's that were put on the married woman's stamp and ended up with 18p a week pension. Maybe you are not old enough to know about this. As for my so called rant, I was suggesting ideas where money could be raised to help pensioners, their carers, reducing the waiting times in A&E and the nurses. Is it any wonder morale in the NHS is at an all time low and nurses and carers are leaving in their droves. Getting the drunks and crackheads to pay for it through automatic fines seems like a good idea to me and the hospital trust CEO I spoke to, unless you have better ideas on how to care for pensioners.

I don't know about your Mum but as a working woman in the early 1970s, I was given the option of whether to pay a full or reduced stamp.
I chose the full stamp.
Are you sure it was through 'no fault of her own'?
Or did she just she see more money in her pay packet if she paid the reduced stamp and opted for that?

Reduced rate National Insurance for married women

Until April 1977, married women could choose to pay a reduced rate of National Insurance (sometimes called the ‘small stamp’).

https://www.gov.uk/reduced-national-insurance-married-women

marlot

westport wrote: »

....both Labour and the Conservatives have ignored the issue of getting people to pay more into their own pensions just so to stay in power as it would be an unpopular decision....

Except for Auto enrolment, which was started by Labour, built on by the coalition and has continued support under the Conservatives!

badmemory

Auto enrolment sounds good, but if people & employers only pay in the minimum, even if they start at 18 it will not be anywhere near enough to fund a decent retirement.