Hi hope you are all as well as can be expected. I don’t know if any of you can give me some advice, but my husband retires next year and we are not sure when and who to speak to about the financial side of it. We don’t have any savings unfortunately and I have no money coming in except for my DLA and of corse at the moment my husband has his wages. I hope noone minds me asking?Thanks Jaycie I
Is your husband in a company pension scheme? If so, then the company should be able to give him some figures about his forecasted pension for next year so that you can start making plans now. They should also be able to point him in the direction of an adviser who can help him decide whether to take maximum lump sum or smaller lump sum and bigger pension.
You should also be able to get a projection of his state pension by now. This is available on the directgov website and he will need his National Insurance number. Btw, DLA is not means tested so this should not be affected by any pension that your husband receives. You may even be eligible for Pension Credit if your husband has only the state pension to rely on from next year. This will all be calculated on the directgov website.
If he is in a private pension scheme he should still be able to get a forecast from the company that administers the scheme ie the insurance company.
Alternatively he could go to a financial adviser (I would recommend an independent one). Yes, they will charge for the advice but to give you an example I referred my dad to an adviser, he was very happy with the advice he received and was charged only £250 for over 12 hours of advice and form filling including home visits, telephone calls etc. He also saved thousands of pounds over the rest of his life as they knew exactly what was the right advice for him and what worked out the worst for his pension administrator! One of his contracts has some guarantees in it that mean very bad news for the pension company but very good news for dad.
I hope you and your husband enjoy a long and happy retirement
The Pensions Advisory Serice are a good place to try (Google - they are about the 4th down)
Thank you Tracey for your help.Unfortunately all he will have in other pensions is about £20 per month and his old age pension.
In which case, especially coupled with your disability, may make you eligible for Pension Credit. My uncle has a very small pension on top of state pension and he gets Pension Credit. I don’t know the full qualifying criteria for Pension Credit but I would have thought that it’s similar to tax credits and a disability entitles you to a bit more. As you are a non-earning spouse with a disability it’s worth looking into. This also leads to a bit of help with rent etc. Even with the bind of extra form-filling it’s worth claiming for every penny - I’m sure they make the forms deliberately complicated to put people off
I remember hearing a while ago that people with certain health conditions (including MS) can claim a bigger pension. It’s basically if your life expectancy might be less than normal. I can’t remember what this was called, but if you spoke to a financial advisor they should know about it.
Google “pension credit calculator”.
It is on a gov.uk website
If you complete the details, it will calculate some useful figures for you.
(sorry, but don’t know how to post the link - let me know if you can’t find it and will try to assist further)
Good point! This is called an enhanced annuity and only applies to your private pension. You have to mention it to your pension provider and complete a form listing your medical condition and the medication taken for it. It only applies to the pensioner though, not the spouse as far as I am aware. That is something individuals would have to check with their pension provider as I am not an expert, this is just information I have picked up by working in the financial sector over the years.
It doesn’t apply to state pension. However, if you have a low income as a pensioner you may be eligible for Pension Credit and there is a disability premium for that. I’m not sure if you can claim the disability premium for the spouse in those circumstances and again it’s always worth asking.
Tracey beat me to it! Actually, people with certain serious health conditions (which usually include MS) can apply for an “impaired life” annuity, which usually beats even “enhanced”. The latter is open to people, who, whilst well at the moment, have certain lifestyle risks - e.g. being a regular smoker, being obese.
Also, regardless of health, it pays to shop around. You don’t actually have to buy an annuity from the pension company you’ve always been with, which is rarely the best deal. But too few people are aware of this, so tend to accept whatever lame offer their existing provider makes. Unfortunately, once you’ve signed on the dotted line, the deal is sealed for life, so you can’t switch after that, if you realise you’ve made a mistake.
I agree with Tracey, though, that none of this is likely to make a huge difference to Jaycie and her husband. If they only stand to get £20 per month anyway, then even he manages to get a 30% uplift by shopping around, and declaring ALL known risks and health conditions, they’ll only get an extra £4 per month. Still worth doing, as that £4 per does mount up, in the course of a lifetime. However, it will do little to address their immediate needs.
Thanks for all of your advice it has been very helpful