Pension Advice For Mid To Late 40s Autistic Bloke

[XPertByExperien]

Above.

 

I do have a job (hence the username) but as through no fault of my own, I hardly ever work, I've been in this job just over a year since last January, and still haven't earned over the £533 taxable threshold.

 

I am also still on enhanced rate PIP (which goes up in April apparently) and have been on benefits in general since I was just turned 17 (so 30 years next month) therefore I'm concerned I won't get a full Pension.

 

I've contacted work on the issue, they're being annoyingly vague on the subject and have told me to contact Citizen's Advice, I did last week, but the call centre was closed due to technical upgrades on the phone line or something?

 

Can anyone help?

 

[HeHasRisen]

Well the first obvious step would be to log into the HMRC website and see how many years full contributions you currently have.

[Carl]

I believe some benefits also give you NI credits which count towards your State Pension, but the best way to check your position is to get a forecast from here:

 

https://www.gov.uk/check-state-pension

 

You'll need to have a Government Gateway ID to use the online service (if you don't already have one of these you can create one from that link) or, alternatively, there's a link to apply by post. The forecast will show you details of contributions and credits for each year, plus give you a forecast of what you'll receive when you reach state pension age.

 

 

Edited March 13, 2023 by Carl
typo

[HeHasRisen]

As a general point, anyone planning to solely live off just the state pension alone from the age of 68 is an absolute moron, granted if people have other income streams like lifetime disability benefits this wont apply in this case.

[XPertByExperien]

58 minutes ago, Carl said:

I believe some benefits also give you NI credits which count towards your State Pension, but the best way to check your position is to get a forecast from here:

 

https://www.gov.uk/check-state-pension

 

You'll need to have a Government Gateway ID to use the online service (if you don't already have one of these you can create one from that link) or, alternatively, there's a link to apply by post. The forecast will show you details of contributions and credits for each year, plus give you a forecast of what you'll receive when you reach state pension age.

 

 

I do have a Passport, and copies of payslips from work, however, I don't have access to my Passport number at the moment, it's in a drawer at the Flat.

 

 

[Annie Bynnol]

   As a family were in a similar situation- now mainly resolved by a permanent job. We did look into ensuring his future 'post us' and came up with the following considerations.

   The Full  State Pension requires 35 years of NI contribution paid through work, benefit system or voluntary.    

   Find out which benefits end at 68 and which carry on.

   Additional pension through work- pay maximum, find out if it transferable when changing jobs and if contributions can be made when not in work or in lump sums.

   Additional private pension up to the tax free maximum.

   A parents' house will likely attract a 40% Inheritance Tax or be subject to a levy for care- prove you live there by officially paying them rent and contribution to bills. After seven years sell up and no tax to pay. This benefits siblings as well. Also maximise the Tax Free gifts that your parents can make as this will also reduce Inheritance Tax.

    

   

 

[Anna B]

58 minutes ago, Annie Bynnol said:

   As a family were in a similar situation- now mainly resolved by a permanent job. We did look into ensuring his future 'post us' and came up with the following considerations.

   The Full  State Pension requires 35 years of NI contribution paid through work, benefit system or voluntary.    

   Find out which benefits end at 68 and which carry on.

   Additional pension through work- pay maximum, find out if it transferable when changing jobs and if contributions can be made when not in work or in lump sums.

   Additional private pension up to the tax free maximum.

   A parents' house will likely attract a 40% Inheritance Tax or be subject to a levy for care- prove you live there by officially paying them rent and contribution to bills. After seven years sell up and no tax to pay. This benefits siblings as well. Also maximise the Tax Free gifts that your parents can make as this will also reduce Inheritance Tax.

    

   

 

I thought inheritance tax didn't kick in until the sum of husband and wife's estate (combined) reached about £600,000 

 

 

[Annie Bynnol]

1 hour ago, Anna B said:

I thought inheritance tax didn't kick in until the sum of husband and wife's estate (combined) reached about £600,000 

 

 

   Each individual has their own non-taxable allowance of £325,000 . A sum which even the Tories are not likely to increase in the foreseeable future. That is aroundabout the value or less of many houses. Any other property, goods, cars, saving, shares, assets etc. is also taxable. 

   When the first spouse or civil partner dies their unused bit of their £325,000 allowance can be transferred to the surviving spouse on the date of death. If the survivor lives on for another twenty years the value of the house may have doubled, but the non-taxable allowance of the first partner will not have increased. The IR will also take into account 'downsizing'.

    Your figure of a tax free £650 000 allowance may be substantially less than the value of the house and assets in the future. Live in children can benefit by planning ahead with proper advice.

[Anna B]

On 13/03/2023 at 13:58, Annie Bynnol said:

   Each individual has their own non-taxable allowance of £325,000 . A sum which even the Tories are not likely to increase in the foreseeable future. That is aroundabout the value or less of many houses. Any other property, goods, cars, saving, shares, assets etc. is also taxable. 

   When the first spouse or civil partner dies their unused bit of their £325,000 allowance can be transferred to the surviving spouse on the date of death. If the survivor lives on for another twenty years the value of the house may have doubled, but the non-taxable allowance of the first partner will not have increased. The IR will also take into account 'downsizing'.

    Your figure of a tax free £650 000 allowance may be substantially less than the value of the house and assets in the future. Live in children can benefit by planning ahead with proper advice.

Thankyou for your reply.

That's pretty much what I thought, but I take your point about the increasing value of houses.