This is money, how much you need in retirement

NannaH

Yes, he’s stil got his resettlement letter from 1995.   

Pretty disgusting that you have to claim it, a person could have early dementia or MH issues and easily slip through the net, especially if not part of any veterans’ groups.   

I wonder how many never claim?  

Silvertabby

NannaH said:

Yes, he’s stil got his resettlement letter from 1995.   

Pretty disgusting that you have to claim it, a person could have early dementia or MH issues and easily slip through the net, especially if not part of any veterans’ groups.   

I wonder how many never claim?  

Many more than you'd like to think.  Although, to be fair, has your husband informed Veterans' UK of all of his changes of address since he left?  I'm sure I read somewhere that many 'contact' addresses on deferred pension records are married quarters, so no point in writing there some years later. 

Some will have died without telling their spouses that there were benefits to claim, but many more simply misunderstood their pension rights.  

I'm a RAF pensioner (admin trade, 22+ years service) and I have personally told 2 people that the lump sum they received on completion of 12 years service was NOT in lieu of pension rights!

Veterans' UK are currently in the process of tracking down their missing pensioners, but still have some way to go. 

drumtochty

NannaH said:

£480 for 2 x SIPP contributions (to age 75) to get the £1500 uplift - we would withdraw the uplift and leave the rest in cash until age 67.

Nanna H

There is an issue here.

Your husband

 

You say your husband is working to say 63 so that £720 uplift is taxed and it goes down to say £180 PA. Or does he wait until leaving work to start drawing down. I assume so!

 

At 63 his RAF pension is in payment and he has no salary, OK if only the RAF pension plus topping it up to £12,750 a year up to age 67 from drawdown. If his RAF pension is below £10K PA Then he gets the £720 uplift from the pension tax relief.

You then say you in total as a couple you get £26k state pension so divide by 2 and he gets £13k a year state pension, that uses his full personal allowance. From SP age on he pays tax on the full drawdown value, so only a £180 per year uplift for from then on. As he is paying tax on his drawdown. The £720 uplift only works when your total earnings from pensions and any part time work is below the personal allowance.

Your Good Self

As you only draw down say £3k PA prior to SP age, you get the £720 uplift until 67 but after that if you get £13K a year state pension, your uplift from SP age goes down to £180PA. As you would have used your full personal allowance on your state pension.

 

Now the £26K combined state pension may well not be divided 50/50 between you.

This to an extent this is a result of the chancellor freezing personal allowances for 5 years.

NannaH

Funding his SIPP will only happen once he retires,  he currently pays into his employer scheme under sal sac (16% total of £55k).
 The £26k joint basic income at SPA will include his RAF pension (@£6k - pure assumption, could be more or less)  so £10k each full SP.
His personal allowance will be £13750 ( inc. marriage allowance assuming it’s still there in 2028).
So whatever he draws down from his SIPP from age 67 will be taxed along with @£3k of his other income,  not ideal but his pension provision is 4x mine, I’ve only ever been a low p/t earner. 
I will probably stay under my personal allowance (unless widowed of course) .  

We will get the full uplift for approx. 4 years - age 63 to 67 as we’ll both stay under the personal limit.   I get the full uplift now but it’s reinvested,  I’m limited to £3600 gross contributions, I stopped working 2 years ago and couldn’t afford to put my full years earnings into my SIPP,  typical that I’d be able to do it now but it can’t be backdated.  

will-he-payitoff

Sorry for late reply, I do not budget. My incommings are £13,000 per year. From that I pay all the bills including running costs for wifes car. My wife has a part time job but all her earnings are hers. Ive never bought a new car and dont have any monthy payments for phones tv subscriptions etc. Our last holiday was a week in Santorini.

Gin_and_Milk

will-he-payitoff said:

Sorry for late reply, I do not budget. My incommings are £13,000 per year. From that I pay all the bills including running costs for wifes car. My wife has a part time job but all her earnings are hers. Ive never bought a new car and dont have any monthy payments for phones tv subscriptions etc. Our last holiday was a week in Santorini.

When you said your income was 13K, I assumed you meant total income.  Even if your wife keeps all of her earnings, as a household you still have more than 13K coming in.
Still sounds as though you manage very well.  Can I ask how you manage to get your holidays so cheap?  We might be able to go abroad next year, so will need to shop around a bit.

Dazza1902

will-he-payitoff said:

Sorry for late reply, I do not budget. My incommings are £13,000 per year. From that I pay all the bills including running costs for wifes car. My wife has a part time job but all her earnings are hers. Ive never bought a new car and dont have any monthy payments for phones tv subscriptions etc. Our last holiday was a week in Santorini.

Ah, makes more sense now. I think two people using their personal tax allowance could have a good retirement. Providing no mortgage/ rent/kids

bluenose1

Gin_and_Milk said:

When you said your income was 13K, I assumed you meant total income.  Even if your wife keeps all of her earnings, as a household you still have more than 13K coming in.

Still sounds as though you manage very well.  Can I ask how you manage to get your holidays so cheap?  We might be able to go abroad next year, so will need to shop around a bit.

Would be a good topic on how to get bargain holiday deals….
I like looking at the deals on Holiday Pirates, and using their search engine if there is a particular destination in mind.
I then check tripadviser reviews, there are often some really good deals.
I also use Airbnb and if there is somewhere I like I try to find the owners own web site as can be cheaper, though sometimes prefer to book via Airbnb for free cancellation if that’s an option. 
Skyscanner for flights etc, search by the month so you can work out cheapest day to fly. 

will-he-payitoff

Gin and Milk,  Flight search on skyscanner, usually midweek flights as they are cheaper. Sometimes returning with different carrier. Then booking.com etc for apartments/ hotel

Madrick

will-he-payitoff said:

Gin and Milk,  Flight search on skyscanner, usually midweek flights as they are cheaper. Sometimes returning with different carrier. Then booking.com etc for apartments/ hotel

Not forgetting Topcashback when looking at booking.com etc

We are moneysavers after all 😂