Enjoying Retirement

[Welshbeef]

So due to not claiming child benefit when my wife gave birth to our first and wrongly assuming the NI credits would be done - she’s lost 5 years….

Anyway just checked and the following values we can buy the years
1. £301
2. £490
3. 3x £824

So all up it would be £3,265.10
Is it worth doing all (or some) of these.
The oldest goes back to 2012-13 would I be right in thinking that one might be not possible to pay for once we pass Apr2023?

Crudely thinking about it I think it’s £5.50 per week per year so each year gives £286 which in my mind would make the £301 a no brainer and arguably the £490 too as combined it would only take 17 months to get your money back {assuming you live to that age}

the others I’m not sure - but there is plenty of time to earn those missing years.

Bloody annoyed that we didn’t have child benefit saving £2-3k a year for all this time AND we get fked over for pension NI credits missing. Grrrrrr

[Jon39]

Welshbeef said:

.... annoyed that we didn’t have child benefit saving 2-3k a year for all this time AND we get done over for pension NI credits missing. Grrrrrr

Oh well, look on the bright side WB.
At least my post today might help you salvage the situation.

Our state pension for a couple, I think is about 1,000 every four weeks.
Anyone starting to receive it more recently receives more.

Just check how long you are going to live, then you can work out whether it is worth buying some missing contributions. I know, impossible.

Wonder if anyone listened to me some time ago, about tobacco sector shares. Very big gains since then.
No reward wanted. Something to charity might be good.

Your Profile WB, says Finance Director. Shouldn't you be advising us? -
Of course there are so many different specialist areas in finance.

[NortonES2]

My annual pension from my DB scheme increased by 7.5% this year and the way things are going will increase by more next year. Just means I don't have to drawdown anything currently from my DC pot which is just as well in the current market.

[skeeterm5]

Welshbeef said:

Is the 4% safe level to drawdown now 2-3% instead?

I am just going to live less long 😊

[Carbon Sasquatch]

NortonES2 said:

My annual pension from my DB scheme increased by 7.5% this year and the way things are going will increase by more next year. Just means I don't have to drawdown anything currently from my DC pot which is just as well in the current market.

You've done well.

Most private sector schemes are capped at RPI to 5% or CPI to 2.5%

[UpTheIron]

Welshbeef said:

Anyway just checked and the following values we can buy the years
1. 301
2. 490
3. 3x 824

So all up it would be 3,265.10
Is it worth doing all (or some) of these.
The oldest goes back to 2012-13 would I be right in thinking that one might be not possible to pay for once we pass Apr2023?

Crudely thinking about it I think it’s 5.50 per week per year so each year gives 286 which in my mind would make the 301 a no brainer and arguably the 490 too as combined it would only take 17 months to get your money back {assuming you live to that age}

Pre New State Pension (2015-2016 iirc) voluntary contribs must be made by April 2023, you're correct on that.

Also be aware you may get less than the £5.50-ish per week, it will be based on your 'starting amount'. It might be possible it's worth more, I don't know if it works both ways.

I wrote to HMRC to get them to confirm my pension forecast and the effect of doing the same pre-New State Pension contribution (I have one missing year) and that year was worth about £4.50/week to me (for the same £824), so for me it makes sense to make the voluntary contribution against a more recent year if/when I stop working (probably this or next year, I'm about 3 years shy of full pension currently).

There is a form on the website, I completed that (it's paper, not electronic) along with a covering letter with my questions and got a thorough reply about a month later.

[Drumroll]

One of the reasons that I moved my DB pension into a SIPP is my DB (along with my other pensions) would only pay 1/2 the amount to my wife in the event of my death (at the time of doing it, that was looking like a strong possibility)


Anyway back on topic, today I have spent the day in the man cave making an order for some planters for a friend of ours. Cost to them, the cost of the materials, The cost to me nothing, but spending the day doing something I enjoy.

Isn't the reason we retire is having time to do the things we enjoy?

I enjoy doing things in wood, but there is only so much, one can put in your own house.

[skeeterm5]

Drumroll said:

One of the reasons that I moved my DB pension into a SIPP is my DB (along with my other pensions) would only pay 1/2 the amount to my wife in the event of my death

Same for me and i am just completing the process so that, should I unfortunately, die then my wife will get the full value of the pot.

[PF62]

skeeterm5 said:

Drumroll said:

One of the reasons that I moved my DB pension into a SIPP is my DB (along with my other pensions) would only pay 1/2 the amount to my wife in the event of my death

Same for me and i am just completing the process so that, should I unfortunately, die then my wife will get the full value of the pot.

Only if you die immediately after doing the transfer or you don’t intend spending any of it - which is either sad or pointless.

[Drumroll]

PF62 said:

skeeterm5 said:

Drumroll said:

One of the reasons that I moved my DB pension into a SIPP is my DB (along with my other pensions) would only pay 1/2 the amount to my wife in the event of my death

Same for me and i am just completing the process so that, should I unfortunately, die then my wife will get the full value of the pot.

Only if you die immediately after doing the transfer or you don’t intend spending any of it - which is either sad or pointless.

Not correct, my wife will have full access to what is left in my pot whenever I die. This was not the case with my DP.

[skeeterm5]

PF62 said:

Only if you die immediately after doing the transfer or you don’t intend spending any of it - which is either sad or pointless.

The remaining pot........ And I need to live to a very old age or spend like crazy before amount that is less than the 50% paid to the wife from the current scheme.

[Drumroll]

skeeterm5 said:

PF62 said:

Only if you die immediately after doing the transfer or you don’t intend spending any of it - which is either sad or pointless.

The remaining pot........ And I need to live to a very old age or spend like crazy before amount that is less than the 50% paid to the wife from the current scheme.

Lucky you, my pot wasn't (isn't) that full.

I have already explained how much we live off, which currently keeps us happy. Definitely not sad or pointless. Others may well need more so will need a bigger pot.

Edited by Drumroll on Wednesday 18th May 23:05

[PF62]

Drumroll said:

PF62 said:

skeeterm5 said:

Drumroll said:

One of the reasons that I moved my DB pension into a SIPP is my DB (along with my other pensions) would only pay 1/2 the amount to my wife in the event of my death

Same for me and i am just completing the process so that, should I unfortunately, die then my wife will get the full value of the pot.

Only if you die immediately after doing the transfer or you don’t intend spending any of it - which is either sad or pointless.

Not correct, my wife will have full access to what is left in my pot whenever I die. This was not the case with my DP.

Exactly - what is left - but there is only money left if you don’t spend it. Whereas she would have had the 1/2 pension irrespective.

[Drumroll]

PF62 said:

Drumroll said:

PF62 said:

skeeterm5 said:

Drumroll said:

One of the reasons that I moved my DB pension into a SIPP is my DB (along with my other pensions) would only pay 1/2 the amount to my wife in the event of my death

Same for me and i am just completing the process so that, should I unfortunately, die then my wife will get the full value of the pot.

Only if you die immediately after doing the transfer or you don’t intend spending any of it - which is either sad or pointless.

Not correct, my wife will have full access to what is left in my pot whenever I die. This was not the case with my DP.

Exactly - what is left - but there is only money left if you don’t spend it. Whereas she would have had the 1/2 pension irrespective.

OK I will explain it another way. Half of my DP (my DP pension was "Mothballed" about 7 years before I retired) and other pensions would not have provided enough for my wife to live on until she collected her state pension (12 years from when I retired)

[GT3Manthey]

Drumroll said:

Lucky you, my pot wasn't (isn't) that full.

I have already explained how much we live off, which currently keeps us happy. Definitely not sad or pointless. Others may well need more so will need a bigger pot.

Edited by Drumroll on Wednesday 18th May 23:05

Drumroll , just to come back on this point- can you remind me what you drawdown each month for yourself and your wife pls to save me going back thru the thread ? We seem in our household to have gotten way to over our heads in what we think we’ll need each month.

I’ve compiled a list in my notes app and it seems to be constantly growing !

There is a provision in there for my daughter whilst at uni plus a monthly holiday savings plan but nonetheless it seems to be getting to the point where retirement is looking less likely !

[James6112]

The way inflation is going, the drawdown pots will have to perform pretty well to keep up!
Could go either way, it’s a gamble after all.
Eg a half million pot in lieu of a db sounds a lot now. But I plan on living another 30 years. The gas bill will cost that in 2050

I’m not retiring for a couple more years, as generous salary & wfh. Will bring it forward if I have to go in more than occasionaly

A mix of drawdown gambled with HL & 2 DB pensions started when I hit 60 recently. Still paying into another DC.

The state pension forecast went up nicely:-


Wife’s state pension forecast just a few £ short of that

[GT3Manthey]

James6112 said:

The way inflation is going, the drawdown pots will have to perform pretty well to keep up!
Could go either way, it’s a gamble after all.
Eg a half million pot in lieu of a db sounds a lot now. But I plan on living another 30 years. The gas bill will cost that in 2050

I’m not retiring for a couple more years, as generous salary & wfh. Will bring it forward if I have to go in more than occasionaly

A mix of drawdown gambled with HL & 2 DB pensions started when I hit 60 recently. Still paying into another DC.

The state pension forecast went up nicely:-

Inflation is my now biggest concern and I can’t see too many always beating inflation given stock mkt performance of late .

It’s certainly been a rollercoaster couple of years what with covid and now inflation .

The other concern and unknown , is potential pension tax changes going forward.
They can’t keep issuing gilts forever !

[Welshbeef]

Yesterday saw the biggest US stock market fall since the kick off of covid. And looking over these last few years it’s averaged ago 8% - but further falls which will happen as companies will make less money will see further stock falls.

[Dermot O'Logical]

We need to change the thread title.

Nobody seems to be "Enjoying Retirement".

[Drumroll]

GT3Manthey said:

Drumroll , just to come back on this point- can you remind me what you drawdown each month for yourself and your wife pls to save me going back thru the thread ? We seem in our household to have gotten way to over our heads in what we think we’ll need each month.

I’ve compiled a list in my notes app and it seems to be constantly growing !

There is a provision in there for my daughter whilst at uni plus a monthly holiday savings plan but nonetheless it seems to be getting to the point where retirement is looking less likely !

I take my money out once a year, it works out at 1450 a month. No mortgage, 3 bed semi only 2 of us living in it. Daughter financially independent, but do have gas guzzling 4 4.

No doubt I will need to eat into savings this year and drawdown more next year.

Edited by Drumroll on Thursday 19th May 07:50