UK Pensions

Prakhonchai Nick said:
UK OCCUPATIONAL WIDOWS PENSION

Most wives, and many partners will receive a pension on the death of their UK husband/partner from his former employer. Most pay a minimum of 50% with some as much as 66%. Some however will pay a much reduced pension if marriage to a Thai partner occurred after taking their own pension.

In addition some employers reduce a widows pension by 2%-2.5% for each year that he/she is younger than her husband/partner over 10 years. Many of us on the forum have younger wives/partners!

There was an interesting article published this week, written by Steve Webb, the former Pensions Minister and now an adviser to Royal London Assurance, regarding the legality or otherwise of these age related reductions.

As suggested in the article, I have written to my Pension Trustee to ask for their view on the article, having been repeatedly told by them over the years that my wife will be subject to a 2.5% reduction for every year more than 10 she is younger than me....(Doesn't leave her with much!) :(

https://www.dailymail.co.uk/money/p...cheme-reduce-widows-payouts-shes-younger.html
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I finally heard back from my Pension Trustee to the effect that they had no plans to change their current position on reduced pensions for younger wives.

Still on the subject of occupational pensions, a recent widow was refused a Police pension because they married AFTER her late husband retired from the Police Force. Strangely though, another widow obtained a 6 year backdated Police pension, despite marrying after her husband retired. It all seems to relate to which particular "scheme" one was in at retirement.
 
Ivor the Engine said:
www.express.co.uk

State pension 'is worst in developed world' - Triple lock concerns

STATE PENSION payments are set to rise by a double lock mechanism next year, as the Government intends to suspend the triple lock for one year, due to the coronavirus pandemic's impact on the earnings element of the uprating system. Today, MPs will debate the matter, on the same day new research...
www.express.co.uk www.express.co.uk
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@Ivor the Engine, if you don't need it at 66, leave it in the 'bank' for another 5 years. Once you draw your pension it will be forever frozen at that rate (for so long as you remain in Thailand).
 
nomad97 said:
@Ivor the Engine, if you don't need it at 66, leave it in the 'bank' for another 5 years. Once you draw your pension it will be forever frozen at that rate (for so long as you remain in Thailand).
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Your State Pension increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks.

BE AWARE though...........

You never receive the money you would have received during the deferrment period - just a higher pension once you claim. Depending on how long one lives after claiming the pension will determine whether one benefits or loses from deferrment.
 
Prakhonchai Nick said:
Your State Pension increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks.

BE AWARE though...........

You never receive the money you would have received during the deferrment period - just a higher pension once you claim. Depending on how long one lives after claiming the pension will determine whether one benefits or loses from deferrment.
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I worked it out a few years ago when Stuart deferred his pension. Say the pension was £9,000.00 at the time, by deferring one year your pension would increase by £500.00 but you would lose the £9,000.00. It would then take you 18 years to recover that loss.

I think that's roughly correct.
 
Yorky said:
I worked it out a few years ago when Stuart deferred his pension. Say the pension was £9,000.00 at the time, by deferring one year your pension would increase by £500.00 but you would lose the £9,000.00. It would then take you 18 years to recover that loss.

I think that's roughly correct.
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Plus In my case, I would also be concerned that they might 'change the goalposts, yet again). For me, it was 65,then 60, then 65 and now 66.
 
I did the sums when I turned 65. I opted to take the monthly pension and run! Some 8 years on since drawing my pension, a new analysis of the sums involved may have made an interesting comparison. The difference in the 28-day payment would have risen from £117 to £175, plus the extra yearly allowance for deferring the pension, maybe £500 per year. Sounds like @Ivor the Engine will already be in line for a more substantial pension than those who were pre the new £175 level. :):):)
 
nomad97 said:
I did the sums when I turned 65. I opted to take the monthly pension and run! Some 8 years on since drawing my pension, a new analysis of the sums involved may have made an interesting comparison. The difference in the 28-day payment would have risen from £117 to £175, plus the extra yearly allowance for deferring the pension, maybe £500 per year. Sounds like @Ivor the Engine will already be in line for a more substantial pension than those who were pre the new £175 level. :):):)
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I think that is per week.

My calculation did not take increases, if any, into account.

However, with a deferred pension would you be eligible for the increases whilst living in Thailand?
 
nomad97 said:
I did the sums when I turned 65. I opted to take the monthly pension and run! Some 8 years on since drawing my pension, a new analysis of the sums involved may have made an interesting comparison. The difference in the 28-day payment would have risen from £117 to £175, plus the extra yearly allowance for deferring the pension, maybe £500 per year. Sounds like @Ivor the Engine will already be in line for a more substantial pension than those who were pre the new £175 level. :):):)
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I think you will find that even had you deferred, your pension would have been based on the pre-April 2016 rates. Why? Because the rules refer to when you reach state pension age........NOT when you make the claim.
 
Ivor the Engine said:
Good question (for Nick)
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The weekly payment amount will increase whilst you have deferred, and once you claim you will receive the then current rate. At that point, it will be frozen if you live in Thailand and various other countries.

Example: You get £179.60 a week (the full new State Pension).
By deferring for 52 weeks, you’ll get an extra £10.42 a week (just under 5.8% of £179.60).
This example assumes there is no annual increase in the State Pension. If there is an annual increase, the amount you could get could be larger.

Once in payment it is frozen in Thailand.
 
Prakhonchai Nick said:
Your State Pension increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks.

BE AWARE though...........

You never receive the money you would have received during the deferrment period - just a higher pension once you claim. Depending on how long one lives after claiming the pension will determine whether one benefits or loses from deferrment.
Click to expand...


Very useful information as always.


However, Nomad's post was about 'leaving it in the bank if you don't need it'.......... not deferral. :wink:
 
CO-CO said:
Very useful information as always.


However, Nomad's post was about 'leaving it in the bank if you don't need it'.......... not deferral. :wink:
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I think by leaving it in the "bank" Nomad was referring to the pension services bank, where it would attract increases until pension claimed
 
Prakhonchai Nick said:
I think by leaving it in the "bank" Nomad was referring to the pension services bank, where it would attract increases until pension claimed
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Wrong.

There is no such bank. You misread it - don't waffle :) - the valuable information you provided about deferral was very useful
 
I had a very small personal pension with Standard Life but needed some cash for a project and decided to cash it in during 2012 when I was 61. As it had been running for a short time only, and the value was below a certain figure, I was able to make a larger than normal encashment leaving only a small balance with which to purchase a lifetime annuity.

I asked several companies for annuity quotes based on annual escalations of payment and also level payments (i.e. never increasing) from age 61

By investing the lump sum available at a nominal rate of interest, and taking the option without annual increases, I calculated that I'd have to live a further 31 years until I was 92 years old before the income from an annuity for the entire value of the fund, escalating each year, would have caught up with the option to take the lump sum and the smaller, non-escalating annuity.

As I had no means of guaranteeing that I'd live to age 92 (and beyond in order to receive any profit) the decision was a no-brainer. 22 years left to go before the sums equate with each other, and the money is working harder for me in my bank than in theirs!
 
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