Parents, pensions & wills

13

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  • p00hsticks wrote: »
    If your mother's been receiving a widows pension for five years and is still only in her mid fifties they may well have to continue to pay out a pension to her for another thirty or forty years - as long as he would have been paying in.
    yes that is true but atush said that it has probably been paid out with interest. I take this as him/her saying that the pension has probably been paid out now (his contributions) and more (than what he contributed).
    That may well happen in time but in only the short time that has passed i would highly doubt it. In time is all ifs and maybes. That's all i was saying.
    I guess maths is not a strongpoint for you. The payback period is just over 3 years and she could be getting that paid for 20 years or more, so yes it is worth doing, especially as it's indexed linked.

    The only time it would not be worth doing would be if you knew you had less than 3 years to live.
    Maybe i misunderstood it but i read it...
    p00hsticks wrote: »
    she could in the future buy voluntary Class 3 NI contributions at a cost of around £733 a year, and each year bought would add around £4.35 a week to her state pension up to the maximum of £159.55
    as saying that she could buy in her missed years at a cost of around £733 a year, so if she's missing 10 years she pays for 10 years at say £733 a year which totals £7330 (providing my maths is ok) :)

    But each year you pay for only gets you an extra £4.35 per week.

    So you'd never get back what you've had to pay for is how i read it.
  • xylophone
    xylophone Posts: 44,139
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    It sounds to me that your father was a member of a DB pension scheme (Morrisons possibly?) and your mother is receiving a widow's pension which will be index linked and paid for as long as your mother lives - this could be for another forty years.

    Your father's contributions paid for security for himself and his dependants.

    https://www.usdaw.org.uk/CMSPages/GetFile.aspx?guid=c7ec6ef3-a928-4dc9-ac5d-9effe79ec6b5

    Your mother should check her state pension situation.

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/607128/your-state-pension-explained-apr-2017.pdf
  • greenglide
    greenglide Posts: 3,301
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    £4.35 per week is £234 a year according to my calculator.

    So in three years you would have got back £702 for a one off cost of £733.

    What exactly is wrong with that deal?
  • p00hsticks
    p00hsticks Posts: 12,670
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    But each year you pay for only gets you an extra £4.35 per week.

    So you'd never get back what you've had to pay for is how i read it.


    That's an extra £4.35 a week for the rest of your life for a one off payment of around £733 - you only have to live for just over three years after state pension age to get your money back, and after that you are quids in.

    But I think the point is moot anyhow, as if your mother is getting ESA and/or DLA, the chances are that she will have enough credits to qualify for a full state pension anyhow (but get her to check to make sure).
  • LHW99
    LHW99 Posts: 4,135
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    If she had child benefit paid to her at any point between 1978 and 2010, she may also have been given credits for that, even if she didn't get them for other reasons.
    There is information on that here
    https://www.gov.uk/home-responsibilities-protection-hrp/overview

    Important therefore to help her check her record. If online isn't an option, you could help her to phone, and they will send a written version.
  • Mojisola
    Mojisola Posts: 35,551
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    yes that is true but atush said that it has probably been paid out with interest. I take this as him/her saying that the pension has probably been paid out now (his contributions) and more (than what he contributed).

    Maybe i misunderstood it but i read it...

    as saying that she could buy in her missed years at a cost of around £733 a year

    The pension payments that your mother is getting now are from a work pension your father paid into.

    The 'missed years' would be to top up her own State Pension.
  • Neasy
    Neasy Posts: 92
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    I think your Mum needs to:
    • Check her National Insurance record as explained above
    • List the employer(s) she herself has worked for in the past and check whether she has any deferred pension
    • Make a will
    • Sort out Powers of Attorney - naming people whom she trusts and are competent to look after her welfare

    I appreciate that you're reluctant to post too much information on a public forum but personally I don't think posting the name of a particular employer exposes you too much, and there's an absolute wealth of information and help to be found here - if you tell the forum who your Dad's employer was, and potentially also your Mum's, I'm confident that people will help you to locate sources of further information.

    Do you think your Mum might benefit from joining the forum herself? She might enjoy it! People are very friendly and helpful.
  • atush
    atush Posts: 18,719
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    While i accept that and agree, if i could have the option to go one way and have that happen or go another and have it not happen then so long as there's zero difference to the money i receive in retirement (since like you said that's what it's for) then obviously i would go the way of making sure it could pass on.

    So make sure your pension is a DC pension then?
  • xylophone wrote: »
    Your father's contributions paid for security for himself and his dependants.
    That rings a bell because my sister also got a monthly pay out while she was at college. She's a tad older than my brother but he didn't get anything from it because he went straight into work after leaving school at 16 unlike my sister.

    I've passed the information on to my mother. Thanks to all. She'll be looking into it.

    Oh and it wasn't a supermarket :)
    greenglide wrote: »
    £4.35 per week is £234 a year according to my calculator.

    So in three years you would have got back £702 for a one off cost of £733.

    What exactly is wrong with that deal?
    no offence but i already explained where the confusion was on my part.

    post #22.
    LHW99 wrote: »
    If she had child benefit paid to her at any point between 1978 and 2010, she may also have been given credits for that, even if she didn't get them for other reasons..
    Thank you. I imagine she will have. She had 3 children born between those dates and all had turned 18 by 2010.
    atush wrote: »
    So make sure your pension is a DC pension then?
    How do i do that? And is it any better or worse than any other pension?

    You'll have to excuse my ignorance but a pension is a pension to me. I know that isn't the case. I've heard these terms DB and now DC. I'll just be going online & likely to Cavendish Online and paying into a SIPP. No idea what Dx that makes mine.
  • atush
    atush Posts: 18,719
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    How do i do that? And is it any better or worse than any other pension?

    What type of pension do you have now? Who do you work for?

    Is it based on how many years you work someplace and your salary (DB), or is there a pot of money that you and your employer pay into and you get annual statements (DC).

    The first type sounds like what your dad had- you get a certain % of your salary paid to you in retirement, and if you die there are dependents pensions paid- there is no pot of money. When your mother dies, her part of your dads pension will cease.

    The second is where you and your employer pay in and there is a pot of money. This money can be used to live on when you retire, but any left over can be left to your wife, children etc. If you die before age 75, it is paid to your nominated party tax free outside your estate (so not subject to IHT) but is taxed as income when it is drawn by them if you die after 75.
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