Enjoying Retirement
Discussion
tighnamara said:
Welshbeef said:
Ok let’s for example take one of my wife’s DB pensions from an old role king since left. Let’s use round numbers - annual at retirement age assuming no 25% draw out gives 5k a year apparently you should take that value and multiply it by 20 to give a good indication to the valuation of the DB funds value. So this would be 100k.
There is no annuity that offers 5k RPI linked and 50% to spouse for 100k.
Using those numbers what fund value what fund value was yours given to transfer. Ie I’m hoping it’s materially above 100K to cover the guaranteed elements I mention above.
You are making figures up to suit you, lets use a real example (not round numbers) , other half has similar DB pension figure as above, was offered 40 times value.
Also the DB cannot be transferred whereas SIPP can - thank you for this wasn’t aware /hadn’t looked into it.
https://www.moneysavingexpert.com/latesttip/?ancho...
There is a piece from Martin Lewis today on MSE
I have tried a number of times to increase my NI years and to some extent have added extra years to increase my pension (now in receipt at 66 years).
I have over 40 years contributions but still short on full pension. I was contracted out.
Could be useful for some people.
There is a piece from Martin Lewis today on MSE
I have tried a number of times to increase my NI years and to some extent have added extra years to increase my pension (now in receipt at 66 years).
I have over 40 years contributions but still short on full pension. I was contracted out.
Could be useful for some people.
Welshbeef said:
Ok let’s for example take one of my wife’s DB pensions from an old role king since left. Let’s use round numbers - annual at retirement age assuming no 25% draw out gives 5k a year apparently you should take that value and multiply it by 20 to give a good indication to the valuation of the DB funds value. So this would be 100k.
There is no annuity that offers 5k RPI linked and 50% to spouse for 100k.
Using those numbers what fund value what fund value was yours given to transfer. Ie I’m hoping it’s materially above 100K to cover the guaranteed elements I mention above.
The idea of dumping a DB pension into an annuity would in the vast majority of cases be nuts.
There are a large number of scenarios in which transferring out from a DB scheme may make sense. Most also have CETVs of significantly above the governments arbitrary 20x multiplier. The reason they make it difficult to do is there are a lot of considerations to make before you know if it is right or wrong for you. It's certainly not black & white.
As a finance director you know this though!
DT1975 said:
Welshbeef said:
Discs and pads and brake fluid - solo work in your garage that’s a fair amount of work. Enjoyable no doubt.
Just pads and discs this time. I saved 256 on the stealer price which for a retirement thread is quite apt I reckon, less on Indy prices obviously but yes it's enjoyable which is half of it . We have three Minis in the family so DIY savings rack up.
We're not quite in our last forever home but the next will have a double garage, ours is a squeeze, I could get the BMW in but would have little room to work on it.
Easily hundreds saved that I would have paid someone to do before.
If the weather keeps up I'm going to spend a day servicing them.
33q said:
I have tried a number of times to increase my NI years and to some extent have added extra years to increase my pension (now in receipt at 66 years).
I have over 40 years contributions but still short on full pension. I was contracted out.
I have over 40 years contributions but still short on full pension. I was contracted out.
I cannot understand - 40 years NI contributions and not a full state pension.
I am certainly no expert on this subject, but I remember before I reached state pension age, I was thinking of buying extra years to qualify for the maximum. There was I think, about 6 years available to do this, so I decided to wait until that limit almost expired.
Before payment became due, that 40 year rule was changed to a lower figure (which I already had), so if I had paid, it would have been money 'down the drain '. Just good fortune with timing.
More recently the number of qualifying years has been reduced further and the amount of state pension increased. However, people already receiving the state pension, didn't receive the new higher amount.
Now the experts here can say if that seems correct. Even for the financially astute, pension rules are (probably purposely) almost indecipherable.
alscar said:
33q , thanks for the note link from MSE - coincidentally I had checked mine yesterday and max achieved for start in 8 years time but now need to check my wife’s who I imagine is definitely in need of top up contributions having not had a paid job for 30 years.
If you have children, check on the number of years your wife was in receipt of child benefit.
Hopefully an expert here will confirm, but I think each of those years counts as a qualifying year for state pension.
May make quite a difference.
Jon39 said:
If you have children, check on the number of years your wife was in receipt of child benefit.
Hopefully an expert here will confirm, but I think each of those years counts as a qualifying year for state pension.
May make quite a difference.
GT03ROB said:
Correct, & i believe a number of higher tax payers have been caught out on this because they stopped claiming it.
Thank you for confirming, Rob.
My state pension problem, is neither I nor my wife, have ever spent any of the money.
Perhaps need to think about it more, but after years of grafting, just thankful to still be here and able to get by.
Abdul Abulbul Amir said:
The 20x is so their public sector chums don't get hit on the LTA.
I do wonder how many if any transfer out of the public sector DB?Also if when there are strikes/union disputes it would be a tough move if those unionists elected to transfer out the DB to a SIPP. Overnight the govt would have to borrow vast sums to fund it as it’s unfounded.
GT03ROB said:
Jon39 said:
If you have children, check on the number of years your wife was in receipt of child benefit.
Hopefully an expert here will confirm, but I think each of those years counts as a qualifying year for state pension.
May make quite a difference.
Correct, & i believe a number of higher tax payers have been caught out on this because they stopped claiming it.
Welshbeef said:
mfmman said:
Ends when the youngest child is older than 12 though
Does it? I thought it was until youngest left education?
Oh well - they need to get back to work I guess or have a woeful state pension.
My wife hasn’t worked for 22 years so I felt the need to Check her state pension fully expecting to be making some form of contributions.
Having got her a gateway login we’ve found thankfully she will get a full pension so happy days if we make it that far !
On that note, a mate of mine works at a local crematorium and says when I retire I can always get casual work as a pall bearer.
Not something I’ve previously considered but might get me out the house a few times a week !
Having got her a gateway login we’ve found thankfully she will get a full pension so happy days if we make it that far !
On that note, a mate of mine works at a local crematorium and says when I retire I can always get casual work as a pall bearer.
Not something I’ve previously considered but might get me out the house a few times a week !
Jon39 said:
alscar said:
33q , thanks for the note link from MSE - coincidentally I had checked mine yesterday and max achieved for start in 8 years time but now need to check my wife’s who I imagine is definitely in need of top up contributions having not had a paid job for 30 years.
If you have children, check on the number of years your wife was in receipt of child benefit.
Hopefully an expert here will confirm, but I think each of those years counts as a qualifying year for state pension.
May make quite a difference.
I have 46 years of contributions and 4 years not full. In my case the issue is that I 'retired' in 2010 at 55. I didn't pay NI or claim any benefits as at that time I was entitled to a full (contracted out) pension. In 2016 the new rules came in and my pension was calculated as the higher of my contracted out rate and the new state pension. I never got to see that calculation as they would not issue it to me. In order to increase my SP I had to pay voluntarily but could only do so for years 2016 onwards until last year when I started to receive my SP. I'm just caught out because of timing and despite my best efforts there is no more I can do.
Have just checked and my wife's forecast is £8,280 pa but needs to contribute to reach this - 11 years worth totaling £ 8,879 if I have read this correctly.
It looks as though child benefit until the children left full time education is included in terms of eligibility.
Her estimate based on up to April last year is £ 5,777 so I'm unsure if this is then inflated to that figure of £8,280 in 2031 -I guess so ?
There is also a sentence saying she could increase this to £ 9,627 pa which is the same maximum as I get apparently.
Assuming therefore I make that £ 8,879 contribution now as it were she gets the difference between £ 9,627 and £ 8,280 ie £ 1,347 pa more in 2031 onwards so better off providing she lives then more than 7 years.
Would appreciate any comment as to whether I am talking utter rubbish or not.
It looks as though child benefit until the children left full time education is included in terms of eligibility.
Her estimate based on up to April last year is £ 5,777 so I'm unsure if this is then inflated to that figure of £8,280 in 2031 -I guess so ?
There is also a sentence saying she could increase this to £ 9,627 pa which is the same maximum as I get apparently.
Assuming therefore I make that £ 8,879 contribution now as it were she gets the difference between £ 9,627 and £ 8,280 ie £ 1,347 pa more in 2031 onwards so better off providing she lives then more than 7 years.
Would appreciate any comment as to whether I am talking utter rubbish or not.
GT3Manthey said:
On that note, a mate of mine works at a local crematorium and says when I retire I can always get casual work as a pall bearer.
Sounds like a dead end job.Sorry, couldn't resist!
Interesting on why someone would move their DB pension into a SIPP. Agree all circs are different and dependent on where you are age wise any 'long term strategy' is a closing window. I wasn't going to take the max tax free lump sum as I didn't need the cash at the time but after looking at the figures I worked out c15yrs was the break even point had I not taken it paying myself the difference from the lump.
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