siamesechris

Triumph13

I would normally have said take the lump sum and use it to defer the state pension. The complicating factor here is the potential that if OP outlives her husband she could end up with an increased state pension based on his NI record which would be bigger than hers even after deferral. Does anyone know what would happen to the increase from deferral in this case? Is it just lost?

xylophone

The OP seems to be claiming her SP on her own contributions as what she is receiving is higher than a Cat B (currently £75.50).

In the event of her spouse's death, she could claim Basic State Pension based on his contributions (if his pension is higher than hers which seems likely) and a proportion of his ASP.

But it also seems unlikely (see here)

https://www.gov.uk/additional-state-pension/inheriting

that her ASP plus a proportion of his would be enough to be affected by the cap.

The OP can check her situation with the Pension Service.

LHW99

In the event of her spouse's death, she could claim Basic State Pension based on his contributions (if his pension is higher than hers which seems likely) and a proportion of his ASP.

But only if his SPA was before April 2016 surely? Which is likely, but I'm not sure if it's been confirmed.

christine_cook

what if the SIPP provider goes bust -is there any protection?

xylophone

But only if his SPA was before April 2016 surely? Which is likely, but I'm not sure if it's been confirmed.

More details concerning transitional arrangements below.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

The OP would have to check her exact situation with the Pension Service.

kidmugsy

christine_cook wrote: »

now I know that wasn't what was needed under TITLE ! Had it said SUBJECT - I might have got it right....

I suspect that MSE uses software of American origin.

kidmugsy

christine_cook wrote: »

what if the SIPP provider goes bust -is there any protection?

Up to £50k now; up to £85k from April.

xylophone

what if the SIPP provider goes bust -is there any protection?

See https://www.moneysavingexpert.com/savings/cheap-sipps/

Triumph13

xylophone wrote: »

The OP seems to be claiming her SP on her own contributions as what she is receiving is higher than a Cat B (currently £75.50).

In the event of her spouse's death, she could claim Basic State Pension based on his contributions (if his pension is higher than hers which seems likely) and a proportion of his ASP.

But it also seems unlikely (see here)

https://www.gov.uk/additional-state-pension/inheriting

that her ASP plus a proportion of his would be enough to be affected by the cap.

The OP can check her situation with the Pension Service.

But does she get to keep her extra pension from deferring if she swaps to a pension on his contributions? Say deferring increased her from £85 to £95 and she's then widowed and gets to have say £125 based on husband's contribution. Does she just get the £125 or does she also get the £10 of extra from her earlier deferral on top?

AnotherJoe

christine_cook wrote: »

what if the SIPP provider goes bust -is there any protection?

Same as the money you have saved with banks and building societies. No need for concern on that score.