Pension stuff, how's it all looking ? HAve you prepared ?

[Mr. Dazzle]

Exactly.

For equal gross rates a monthly payment would be more money overall. But they reduce the monthly rate so the AERs are the same.

[Yambo]

The aim was a “comfy life”.
You could get by on less.

And it depends when you want to retire, a state pension for two adults is £18k, so a private pension of a grand a month on top of that will get you there.

My State pension is £600 every 4 weeks (plus a few pennies) so £7800 a year. What age woman do I have to get into a relationship with to get the income up to £18000 pa?

I have my MoD pension as well of course and also a small pension from Travis Perkins that I inherited when my wife died so I am 'comfortable' when it comes to income. I own the house and I have no debt basically - my heating bill this past winter was absolutely nothing as I still have logs left over from the 1.5 tonne I bought 3 years ago. I'm not complaining.

[Count Steer]

The aim was a “comfy life”.
You could get by on less.

And it depends when you want to retire, a state pension for two adults is £18k, so a private pension of a grand a month on top of that will get you there.

My State pension is £600 every 4 weeks (plus a few pennies) so £7800 a year. What age woman do I have to get into a relationship with to get the income up to £18000 pa?

£150/week? Are you in one of the countries where increases aren't applied? The 'New State Pension' appears to be £204/week after the latest round of increases. The old 'Basic State Pension' was more complicated with Pre 97 additions, less contracted out deductions etc etc etc. Two 'New State Pensions' should give ~£21k pa.

[Yambo]

The aim was a “comfy life”.
You could get by on less.

And it depends when you want to retire, a state pension for two adults is £18k, so a private pension of a grand a month on top of that will get you there.

My State pension is £600 every 4 weeks (plus a few pennies) so £7800 a year. What age woman do I have to get into a relationship with to get the income up to £18000 pa?

£150/week? Are you in one of the countries where increases aren't applied? The 'New State Pension' appears to be £204/week after the latest round of increases. The old 'Basic State Pension' was more complicated with Pre 97 additions, less contracted out deductions etc etc etc. Two 'New State Pensions' should give ~£21k pa.

No, I'm not in a country where increases are not applied, in fact my State pension will go up by 10.1% this month I believe.

What I am, is 4 months too old because I was born before April 4th, 1951. I guess they had to have a cut off date/start date for the 'new improved old age pension' and the one that was chosen disadvantaged me and many others. The MoD also opted me (and others) out of SERPs for the duration of my army career because I would get an MoD pension. I started paying SERPs again after I left the army.

My army pension is/was non contributory so I thank all you wonderful tax payers for keeping me in the manner to which I have become accustomed (I'm still a UK tax payer btw.)

[wheelnut]

My army pension is/was non contributory so I thank all you wonderful tax payers for keeping me in the manner to which I have become accustomed (I'm still a UK tax payer btw.)

If you’re about you can show your appreciation by buying me a beer later this week.

[Yambo]

My army pension is/was non contributory so I thank all you wonderful tax payers for keeping me in the manner to which I have become accustomed (I'm still a UK tax payer btw.)

If you’re about you can show your appreciation by buying me a beer later this week.

You think I should spend my hard earned money on beer?

Oh, OK then.

[mangocrazy]

I refer you all to the late, great Viv Stanshall.

'If I had all the money I'd spent on drink, I'd spend it on drink.'

[Dodgy69]

About the 25% tax free..

If you don't particularly need this for any reason, is the best option currently to leave it where it is or reinvest into something else which may earn interest or be a safe place. I have also heard about recycling.

[Mr. Dazzle]

Even just taking it and putting it in an ISA would be tax advantageous. You've got an ISA limit of £20k per year though, so it might take you a while to get it all into one!

This is the chance you've got to take some of your pension tax free though, so don't miss it.

Edit: you can even take it out, put it in an ISA and reinvest it in exactly the same place(s) it was before. Only this time you're not liable for tax on the 'earnings'.

Without wishing to sound rude, this is perhaps the time to get some professional advice.

[Count Steer]

Regarding the situation where there are 2 pensions in a household, unfortunately you also need to consider what happens if one of the contributors falls under the celestial bus. Many of the 'fixed' costs stay the same. Bad enough losing a partner but finding out you need to move house etc as well...

Working out a figure that just about provides a 'comfy' existence might need a bit of added headroom in some situations.

(Some pensions pay 50% to the surviving partner but you may need to sort that on arranging eg an annuity or to tell your pension people and make the necessary election I think they call it).

[weeksy]

Regarding the situation where there are 2 pensions in a household, unfortunately you also need to consider what happens if one of the contributors falls under the celestial bus. Many of the 'fixed' costs stay the same. Bad enough losing a partner but finding out you need to move house etc as well...

Working out a figure that just about provides a 'comfy' existence might need a bit of added headroom in some situations.

(Some pensions pay 50% to the surviving partner but you may need to sort that on arranging eg an annuity or to tell your pension people and make the necessary election I think they call it).

I assumed if i croaked it my missus just got my pension as a lump sum to do with whatever she wanted.

[Mr. Dazzle]

I assumed if i croaked it my missus just got my pension as a lump sum to do with whatever she wanted.

Not necessarily if you've already bought an annuity though.

You're not drawing yours yet, so yeah likely as not it'll all go to her. A) because she's your next of kin and B) because you've probably already nominated her in your pension docs, even if you've forgotten?

[weeksy]

I assumed if i croaked it my missus just got my pension as a lump sum to do with whatever she wanted.

Not necessarily if you've already bought an annuity though.

You're not drawing yours yet, so yeah likely as not it'll all go to her. A) because she's your next of kin and B) because you've probably already nominated her in your pension docs, even if you've forgotten?

OK, makes more sense....so that's more something to think about for the future and when we get to there, not necessarily right now.

[Mr. Dazzle]

Well....if one thing should be clear from this thread, it's never too early to think about these things

[weeksy]

Well....if one thing should be clear from this thread, it's never too early to think about these things

No, granted, but as it's already in place, there's nothing as such that needs doing right now.

[Yambo]

(Some pensions pay 50% to the surviving partner but you may need to sort that on arranging eg an annuity or to tell your pension people and make the necessary election I think they call it).

I assumed if i croaked it my missus just got my pension as a lump sum to do with whatever she wanted.

After my wife died I got a letter from the tax people who told me about some sort of pension money due to me courtesy of Travis Perkins. I knew nothing about it so got in touch with TP and was told my wife had been paying into a pension scheme when she worked for Wickes and that I was now the beneficiary.

I suggested that they give me the pot of money and I'd give it to my grandchildren but the guy explained that it wasn't a pot of cash, but a pension and it'll be paid to me monthly until I die. It wasn't much and it still isn't much, about £50 a month but it pays for my groceries. I have no idea what percentage (of what my wife would have got) I'm getting but hey, it doesn't really matter.

[Count Steer]

Regarding the situation where there are 2 pensions in a household, unfortunately you also need to consider what happens if one of the contributors falls under the celestial bus. Many of the 'fixed' costs stay the same. Bad enough losing a partner but finding out you need to move house etc as well...

Working out a figure that just about provides a 'comfy' existence might need a bit of added headroom in some situations.

(Some pensions pay 50% to the surviving partner but you may need to sort that on arranging eg an annuity or to tell your pension people and make the necessary election I think they call it).

I assumed if i croaked it my missus just got my pension as a lump sum to do with whatever she wanted.

Probably, but it depends on the sort of pension. As Dazzle says, annuities are one thing (depends on what you buy), final salary type pensions another and SIPP type another.

[Horse]

I assumed if i croaked it my missus just got my pension as a lump sum to do with whatever she wanted.

Not necessarily

You might need to complete two forms nominating her:
- employer, any death in service payment
- pension provider

[weeksy]

I assumed if i croaked it my missus just got my pension as a lump sum to do with whatever she wanted.

Not necessarily

You might need to complete two forms nominating her:
- employer, any death in service payment
- pension provider

So if someone didn't do that...where would it go instead ? (i have done the work one by the way.)

[Mr. Dazzle]

I also doubt you/she would get a lump sum to do whatever she wanted with?

I haven't actually checked, but I can't imagine HMRC would give up all that sweet sweet tax income you've had relief on?