Help filling out State pension Claim Form

pip895

I am trying to help a friend who is nearly 69 and has been retired 2 years, sort out his pensions.  We haven't been able to use the online system as it comes up with a message about missing data and tells you to ring.  When he eventually got hold of someone they arranged for a form to be sent out and were also supposed to send out a valuation and give him some options - this hasn't arrived as yet.

We are currently stalled on filling out the form as he can't remember the precise date of his divorce which was back in the 70s.  He knows the year and is pretty sure of the month but hasn't a clue about the day.   He is considering paying £65 to have a search done..
I cant quite see what the relevance of this date even is, and can't imagine that it is day critical anyway, but perhaps someone on here who is more knowledgeable could shed some light.

He is also worried about sending in the form as he hasn't been sent the valuation with his options.  Are the "Options" just going to be taking his missed years as a lump sum (which I think would be a seriously bad idea) or is there more to it?

Finally is there some point in delaying the claim until after his 69th birthday as it is coming up next month, or given that its recommended that you apply 3 months in advance of your 65th birthday is that a pointless delay as it wont be sorted by next month anyway..     

[PS. I know an appointment with Pension-Wise would be a good idea, but we gave him their details months back - he is a great one for procrastination and having finally got the ball rolling we want to keep up the momentum] 

Dazed_and_C0nfused

If his State Pension age was after 5 April 2016 then a deferral lump sum isn't an option, he gets an enhanced pension.

He may however be able to back date his claim by one year and receive a lump sum of the arrears for that year if he needs a lump sum. That is not a State Pension (deferral) lump sum in the normal sense.  I think this would stop the enhancement accruing to the backdated point so losing 5/6%.

As deferral builds up extra pension every 9 weeks the optimum time might be to ensure he gets another 9 weeks worth (1%) rather than defer for part of a 9 week period.

https://www.gov.uk/deferring-state-pension

pip895

Dazed_and_C0nfused said:

If his State Pension age was after 5 April 2016 then a deferral lump sum isn't an option, he gets an enhanced pension.

He may however be able to back date his claim by one year and receive a lump sum of the arrears for that year.  That is not a State Pension (deferral) lump sum in the normal sense.

As deferral builds up extra pension every 9 weeks the optimum time might be to ensure he gets another 9 weeks worth (1%) rather than defer for part of a 9 week period.

Back dating his pension would still seem a poor option though wouldn't it - particularly as he has lump sums available from his other pensions.

Would saying he wants to draw his pension from his 69th birthday be optimal as it would guarantee he is at the start of one of those 9 week periods?

Dazed_and_C0nfused

If the backdating lump sum isn't required then tying in with the 9 week blocks seems sensible.

When that would be will depend on his normal State Pension age (66 exactly?)

Maybe allow a few (extra) days leeway to be on the safe side.

pip895

Thanks I think it is 65 as he was born in Oct/52??  I will make sure the claim is a couple of days beyond his birth date.

eastcorkram

Does everyone have to give dates of divorces? I had no idea you'd have to do this. I'd better start doing some research!

pip895

eastcorkram said:

Does everyone have to give dates of divorces? I had no idea you'd have to do this. I'd better start doing some research!

Its just the last one I think

molerat

So his retirement date was Oct 2017.  He has no options, his only choice is an increased pension which will take 17 years to break even against what he has lost out on, there is no lump sum with a post 2016 retirement date except in some  under 1 year deferral cases.  There is no "best time" to claim as the increase is calculated weekly, the illustrated figures are only to give you equivalent whole % amounts / annual amount.

pip895

molerat said:

So his retirement date was Oct 2017.  He has no options, his only choice is an increased pension which will take 17 years to break even against what he has lost out on, there is no lump sum with a post 2016 retirement date except in some  under 1 year deferral cases.  There is no "best time" to claim as the increase is calculated weekly, the illustrated figures are only to give you equivalent whole % amounts / annual amount.

He has definitely got hold of the idea he has "options" - maybe its just the option to delay further..  Which as you have pointed out would probably be a very bad idea..

I have left him pondering on weather to go for an annuity or drawdown with his DC pensions - could be waiting some time..

pip895

Has anyone any clue why a divorce in the 70s might effect his pension?  

xylophone

The divorce might affect his ex wife's state pension if he dies before she does.


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