Pension query, please!

elouise01582

As soon as a previous poster confirmed your approximate incomes I thought - Have you claimed the marriage allowance? This enables YOU to donate £1,250 of your personal income tax allowance to your husband and he could end up being £250 better off per year. You may qualify for previous years too. You would need to be willing to donate though so maybe you could use this as some leverage??

xylophone

https://www.litrg.org.uk/tax-guides/tax-basics/how-do-i-claim-tax-back/how-do-i-claim-marriage-allowance-refund

DairyQueen

DAKOTA45 wrote: »

The last comment certainly rings true... Ok...I'm now looking at the situation from his point of view...Seems like he's desperately trying to deal with his loss of 'self' in the only way he can... by controlling the purse strings.
He really isn't a bad person & doesn't have a lazy bone in his body... he is desperatly trying to find work... he even applied to McDonald's without any luck... I imagine that must feel terrible when he was once so successful... The changes we've had to make have been enormous... Sold our beautiful home & rented. We lived on savings until they ran out.. now we can't even afford to rent anywhere. Officially homeless & sofa surfing...luckily we both have close family.
There are plenty more like us...but it's very hard.

OK, so your job is to try and break through his wall of pride. That won't be easy but it's necessary to alleviate your (joint) financial hardship.

xylophone's suggestion is spot-on. I can only guess how a former high-earner would feel about approaching the LA for housing. However, needs must. It's better than relying on the 'charity' of family. That must be equally 'demeaning' for your OH.

You need help. By that I mean society's help. Yes, you and OH are both responsible for the situation in which you find yourselves. Unlike others, you had the opportunity as a couple to generate a decent retirement income but you devolved all responsibility to your OH and he (obviously) marginalised the necessity.

That's the most I will criticise you.

The situation is what it is and, in this country, we do not allow people of your age to be homeless. You need to regain your independence. You can't do that without social support. Your OH must accept the need to approach the LA regardless of how hard this will be for him. There is no alternative.

I think you must accept that you will both be on a tight budget for the rest of your lives. However, that doesn't remove all joy from life. It means appreciating what you have and not yearning for what you don't have.

I think that it will be psychologically easier for you to accept a (probably) low-paid job than your OH. Your lack of numeracy won't be a bar in many such jobs. And, yes, employers are more willing to employ older women in low-paid jobs than men (gender discrimination in the workforce is alive and well - as is ageism).

I feel for you, I really do, but you also need to take ownership for the situation in which you find yourselves. It's easy to devolve responsibility to a spouse - much easier than accepting equal responsibility for your and his financial well-being.

If you find a job then, not only will you be in control of your income, but I think that your OH will have new respect for you.

I wish you luck.

elouise01582

I know you do not think your qualify but you have mentioned 3 different conditions in your posts so I think you should consider applying - the worst that can happen is that you are refused but if not that's more income for you every 4 weeks! Have a look at this link:

https://www.actiononhearingloss.org.uk/live-well/benefits-and-grants/attendance-allowance/

DAKOTA45

DairyQueen wrote: »

Good suggestion. They would definitely be a priority for housing. However, I suspect pride has prevented them investigating this route. It will be a big blow to the husband to approach the LA. If he can overcome his reluctance to do so then there will be light at the end of the tunnel.

Once more, you are 100% right... he just won't even contemplate it.... We just missed out on the pension freedoms which would have enabled him to take his private pension pot & pay off the mortgage... that was terrible bad luck... As you know, the Govt. promised that those who had just taken an annuity would also get the chance to get at their money, but then did a U turn... that was very disappointing and changed the course of our lives forever... but no good crying about it now...

I think it will help that we both came from nothing... we had some very hard times during our early life together... so we will get where we need to be eventually...

Thanks to everyone on here... so helpful & sympathetic! x

DAKOTA45

elouise01582 wrote: »

As soon as a previous poster confirmed your approximate incomes I thought - Have you claimed the marriage allowance? This enables YOU to donate £1,250 of your personal income tax allowance to your husband and he could end up being £250 better off per year. You may qualify for previous years too. You would need to be willing to donate though so maybe you could use this as some leverage??

Thank you... but I honestly don't understand how this works... I will investigate further!

Malthusian

DAKOTA45 wrote: »

Once more, you are 100% right... he just won't even contemplate it.... We just missed out on the pension freedoms which would have enabled him to take his private pension pot & pay off the mortgage... that was terrible bad luck...

It wasn't bad luck. You would be even worse off because he would have paid a much higher tax bill in order to cash in the whole pension fund to pay off the mortgage. In the very best case scenario (where there was enough left over after paying 40% tax to pay off the mortgage in full), you would have been asset rich and cash poor, living in a house you probably couldn't afford to maintain on a low dual State Pension income (without his extra £250 per month).

It is very unlikely that if pension freedoms had been around the time, cashing in the pension fund and paying 40% tax would have been the best option, when considered alongside downsizing, converting the mortgage to repayment or a retirement mortgage, etc. Obviously this is water under the bridge and I'm not picking over your previous decisions; only illustrating why pension freedoms most likely wouldn't have made much difference.

As you know, the Govt. promised that those who had just taken an annuity would also get the chance to get at their money, but then did a U turn... that was very disappointing and changed the course of our lives forever... but no good crying about it now...

That would have made your lives even worse than paying 40% tax to cash in the pension fund, as the lump sum you received for selling it would have been a pittance compared to the value of the annuity.

Selling annuities on the secondary market would have been fully underwritten, with the cost of underwriting and continually contacting the annuitant to check whether they're still alive priced in, which means the lump sums offered would be derisory unless the annuitant was in serious ill health.

The absolute most it could have achieved would be to allow you to spend the lump sum and then claim a greater amount in benefits (as the sold pension income might not be taken into account in means-testing). As you have tried to avoid claiming any assistance even beyond the point at which you were homeless, I can't see that being much of a regret.

xylophone

Thank you... but I honestly don't understand how this works... I will investigate further!

See link in post 53 above. Also

https://www.moneysavingexpert.com/family/marriage-tax-allowance/

And why don't you ring your LA to enquire about housing for over 65s?

Example

https://www.sutton.gov.uk/info/200335/at_home/1084/finding_somewhere_to_live/4

LHW99

DAKOTA45 wrote: »

Thank you... but I honestly don't understand how this works... I will investigate further!

You could try your local Citizen's Advice, they are usually very helpful, and you could do it yourself without (necessarily) involving your OH, at least initially.

DairyQueen

LHW99 wrote: »

You could try your local Citizen's Advice, they are usually very helpful, and you could do it yourself without (necessarily) involving your OH, at least initially.

Good advice.

This forum is great at providing sign-posts and detailed information on specific retirement/investments issues but, from the info. provided, the scope of your problem appears too wide for us to suggest anything specific that could substantially help you. You require a detailed financial review and support from a personal advisor, and the best source of free advice is CAB.

You indicate that things were OK until OH retired and that he only retired two years ago. You have since sold a nice home in which is invested (for most in their 60s, and even if mortgaged) a sizeable chunk of equity. Yet, within this two-year period you have used-up all of your savings. Presumably this includes all of the house equity. In such a short period that would require a lot of spending.

It suggests there were sizeable debts that were settled from the house proceeds and/or you were living substantially above your means for a long period prior to OH's retirement. The former could be the result of the latter.

The situation you describe couldn't happen so quickly unless the financial foundations were already rocky. OH may have been in denial for some time prior to retirement and, after a lifetime of financial dependence, you may have been too detached from financial issues to realise what was happening.

Until your husband accepts reality you will be hard-pressed to begin solving the consequences of the lack of planning but at some point he will have to face the facts and address them. Seeking information independently in the meantime will ensure that you are prepared for his reality check.

If the over-spending has been going on for years then there may be unsecured debts - credit cards/personal loans/overdraft. You may not be aware of these. If there are (and you are) then head over to the debt forum. The people there will be able to point you in the right direction. This site is anonymous so don't be afraid to reveal all of the painful stuff. Yes, you may be judged negatively from some members but many more will be helpful.

If you can find a job it will be as beneficial mentally as financially. Even a low-paying, part-time position will make a big difference to your finances and confidence. Are there any small stores near you? Places like the Co-op are enthusiastic employers of retirees. OH has financially supported your household for decades and now you have an opportunity to help return the favour. You are only 67. That's no age.

Malthusian is correct that the Pension Reforms would not have been the solution for your situation, although they may have provided more flexibility in resolving specific issues. The reforms would not have increased your pension pot and it's the size of that relative to OH's former earnings that has triggered the extreme drop in lifestyle.

The bottom line is that you both failed to plan and save for retirement. You have both overspent/undersaved during most of your productive lives. I am not lambasting you but It may help you engage with OH if you accept that you are also responsible for this situation and that you want to be part of the solution.

Also, thank you for sharing your story. It will be helpful to younger readers to understand why retirement saving throughout life isn't a discretionary expense. I am just sorry that others may learn at the expense of those who, like you, suffer real hardship.