Reaching State Pension Age

[vengeancedemon]

Lucky me I shall reach the State Pension Age (65) in a few months, and I would appreciate some thoughts on the best way to proceed

 

 

1. I currently receive Guaranteed Pension Credit and I have a part time job plus a small works pension

2. I don't intend to stop work at 65 (it would drive me crazy)

 

 

So, anticipating the soon to arrive bumf from HMG whatis the best course to follw?

Defer taking state pension and continue with GPC until such time as I do stop work or??

Any thoughts gratefully received

[firstship]

Two factors to consider your tax free income will be £10,500, If all your Pensions,and Wages exceed £24000 per annum then this will reduce your tax free income for every £2 in excess of the £24000 you will lose £1 of your tax free allowance.If you can afford to defer your pension this is worth while but remember the £10500 tax free income ceiling,calculate what tax you will pay from Pensions only

[Conniff]

Having already passed that stage, I wouldn't advise deferring unless you are in really good health and know that you will still be here to draw the pension at the end of the deferment.

However, deferment for a year will add around £10 to your weekly income.

 

If you have not claimed your State pension by the time of your death, your wife will be able to choose whether to take extra pension or a lump sum in respect of your benefits.

 

However, if you have already put in a claim, for either a higher pension or a lump sum, but die before you receive it, any benefits your wife receives will be in line with your choice, which she can’t alter.

If no choice has been made at the time of your death it is up to your wife to decide.

 

 

You say you don't intend to stop work as it would drive you crazy. I would agree there and you really need a hobby lined up to use up the few hours you have in a day. There don't seem to be as much time left to do things when you are home all day everyday as there is when you are working.

Edited January 17, 2014 by Conniff

[firstship]

Like Conniff I joined the retirement club some good while ago,worked until I was 70,(but did not defer my state pension)and for the 5 years between 65 and 70 paid huge chunks of tax,now fully retired on state pension and occupational pension and still paying far to much tax,as stated above (2) you need to work out how much tax you will pay by adding state pension plus any deferment gain,plus your occupational pension and any amount above £10500 you will pay 20p in the pound income tax and you will have the privilege of filling out a self assessment tax form,as HMRC are incapable of working out your tax even though you are on a fixed income.

If your combined pensions are in excess of the £10500 HMRC will take the tax from your occupational pension up to a maximum of 50% of the occupational pension.

 

As a side issue I object to the State Pension being called a Benefit,after all we paid for the pension all of our working life

 

FS

[defaulter3076]

There could be a problem if the Guaranteed Pension Credit rules would treat a deferred State Pension as notional income. If so, this would mean the State Pension you could have received would be deducted from the Guaranteed Pension Credit. Not sure about this, this is something I would find out about if I was in your position, which could be in 2 years time.

[antone]

There could be a problem if the Guaranteed Pension Credit rules would treat a deferred State Pension as notional income. If so, this would mean the State Pension you could have received would be deducted from the Guaranteed Pension Credit. Not sure about this, this is something I would find out about if I was in your position, which could be in 2 years time.

 

Yes, this would also be my concern. I don't know if you can continue to receive full SPC/GPC while deferring your contributory SRP. I suspect it may well, as you say, be treated as notional income.

[vengeancedemon]

Thank you all, much food for thought

[vengeancedemon]

Bringing this up again, and having looked at many points, it seems that whilst I get GPC, there are available "benefits" ( ie dentist etc for self and spouse, but all this goes if I go for State Pension, which seems rather petty on the part of HMG

[Conniff]

We all have to cut our cap ........

[vengeancedemon]

An interesting but irritating point

 

 

Your Nat Insurance last 2 numbers indicate the payment date for benefits, in my case an imminent start of State Pension, the irritation is that the difference between retirement date ie birthday and start of the 4 weekly calculation for an arrears payment is 6 days, HMG - win win ! plus I have to wait almost 5 weeks to get my pittance

 

 

Moan over

[Surfer01]

The annoying part is if you are a couple, you are now paid on different days of the week! Previously as a couple we were paid on the same day which made it convenient for shopping and budgeting.

[vengeancedemon]

I am about to start receiving State Pension and I have had a note from my local council with notes of amendments to CT and HB rates, fair enough they say Guaranteed Pension Credit will shortly cease and their calculation sheet details Pension credit

 

 

I presume that Guaranteed Pension credit currently received will cease at the start of State Pension ( is this the date of 65 th birthday or the date (4 weeks in arrears) when the State P is paid that the change to Pension Credit from GPCredit? and also is this change an automatic thing or as I have not yet received a notice from Pension credit, do I have to contact them. Just want to make sure I am making correct notifications and who I have to contact. Also, as I shall be continuing to work part time, I have applied for working tax credit which, if awarded will have to be notified to local council and anybody else?

 

 

Final point, my occupational pension is included in Council figures, but it is based on a figure slightly higher than gross monthly amount, should they be working /calculating on net figure after tax deducted?

 

 

Many thanks for any thoughts