Pension at 55 this year

foxmulder7

A bit about me

Given up work to look after mom and dad, they live with me. Mom has Alzheimer’s I am her only carer, I just get carers allowance. .

Dad passed away last year, leaving me some cash in bank, around £40k, no longer get UC. Have to reapply for carers allowance, mom gets standard AA, but got that reviewed and will get higher rate in April. I have Power of Attorney for mom.

mom has circa £75k, mainly in cash ISAs and state pension, widows pensions totalling £19k. I pay all the bills, mom just pays for the supermarket shops like she always has done. I may inherit the lump some one day.

i have mortgage circa £130k at 0.99% fixed until October 2026, my monthly outgoings inc mortgage are around £1,100 a month. I keep things minimal :-)

pension wise I have a SIPP with interactive investor totalling £575,000 and a small DB pension which I could take at 55 worth £1,600 a YEAR. 

I have 34 years in state pension, probably never work again for an employer but get credits for caring for dad up to February this year, and have to reapply for carers allowance for mom them so hope I still get the full credit for the whole year when it comes to getting 35 year pension contributions towards my state pension looking to be in 13 years time.

I am thinking this year taking a UFPLS payment on my SIPP to cover my personal tax allowance fo year

following year taking the full tax free cash and paying off outstanding mortgage when fixed rate comes to an end. Should I do this? and if so should I consider taking it before October budget in case they limit the tax free cash, like there was a threat to that last October?

I’m thinking then I could just get by until my state pension taking cash from my pension to cover personal allowances. I don’t really care about the MpAA dropping to 10k as doubt I’ll ever be putting anymore than that into my pension again in future anyway.

p00hsticks

foxmulder7 said:

I have 34 years in state pension, probably never work again for an employer but get credits for caring for dad up to February this year, and have to reapply for carers allowance for mom them so hope I still get the full credit for the whole year when it comes to getting 35 year pension contributions towards my state pension looking to be in 13 years time.

'35 years for full state pension' is only applicable to those born this century who will fall fully under the new rules 0 you should check your individual forecast https://www.gov.uk/check-state-pension

 I don't want to be nosy, but is there a reason why mom is not contributing to any of the household bills ? I ask because I have seen another post where the parent ended up having to go into care when it became too much for the carer. The parents savings were then all used up in care fees, when they could legitimately have been helping the child by paying half the household expenses - something to think about.

molerat

The big thing that jumps out there is that 35 years is of no relevance to you especially as you state you have a DB pension, it only applies to those born this century.  35 years may coincidentally be the number you need but you need to check your forecast as everyone's is personal to them and based on their own personal circumstances.

Agree with the above that mum should be "paying her way", she is not short of income so no real reason not to and it would help to delay your need to dip in to your pension.

Keep_pedalling

I think you should review your mother’s contribution to your household expenses. 50% of your energy costs, CT, groceries and transport costs would be a reasonable starting point. 

foxmulder7

take on board moms contributions, my concern bills are all in my name and this would mean mom moving money to my bank account which I believe is a big no no when it comes to power of attorneys. 

In terms of my own state pension, I checked and I just need one more year. I actually have one year with 48 weeks of NI credits and can buy the year for about £60 before 2030. But then I will likely get that year this year maybe which is incomplete at moment.

SVaz

Just keep evidence of transfers and match them up to a bill payment, say Council tax and water rates, a saved screenshot of the bill and the exact transfer amount will suffice  - council tax bills will be out soon 😉

More for your own peace of mind, it’s not like anyone is ever going to check up - if they did then family members with PoA wouldn’t be able to steal with little to no chance of come back. 

LHW99

Or work out what 50% of all bills would be.

Then for example, account council tax for one party versus power / water / gas for the other and get one set of DD (~50% total value) paid from her account and the rest from yours?

foxmulder7

From what i heard with the council tax we should be exempt as believe mom should be disregarded with Alzheimer’s diagnosis and me too as her carer. I put the forms in anyway and wait to hear decision. There are only the two of us in the house now.

Albermarle

foxmulder7 said:

From what i heard with the council tax we should be exempt as believe mom should be disregarded with Alzheimer’s diagnosis and me too as her carer. I put the forms in anyway and wait to hear decision. There are only the two of us in the house now.

That is not the case.
You and your Mum will be disregarded as occupants, but you will still have to pay council tax on an 'empty ' property which is usually 50% of normal. 

MallyGirl

foxmulder7 said:

take on board moms contributions, my concern bills are all in my name and this would mean mom moving money to my bank account which I believe is a big no no when it comes to power of attorneys. 

you just need to keep records. It is a reasonable thing for Mum to contribute to her upkeep